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Fix and flip loans.
Purchase and rehab in one facility, $25K to $1M+. Rehab is released in draws against completed work rather than handed over up front, and a written term sheet arrives in 24 to 48 hours.
How it works
One facility, two things it has to do.
A fix and flip loan has to fund the purchase and the rehab, and it has to do both without requiring the money to sit in your account before the work happens. Here that is one facility rather than a purchase loan and a separate rehab line: the contract price and the scope of work are underwritten together, against the finished value the property is expected to reach.
Rehab does not arrive as a lump sum. It is released in draws against completed work, so the budget stays a budget rather than a number that got spent on something else. A draw request is inspected and wired the same day it clears, which is the part that decides whether a crew keeps showing up.
Underwriting reads the property, the purchase contract, the scope of work and its budget, and the exit: sale or refinance once the work is done. Credit is reviewed and it affects pricing, but the file is built around the deal rather than around a personal financial statement.
A written term sheet, not a verbal number, comes back in 24 to 48 hours from a complete submission. It states the amount, the draw schedule, and what still has to happen to close, so it can be compared against another offer instead of remembered from a call.
What to bring
What this needs from you.
Required
- A signed purchase contract, or the property already owned free and clear if this is a rehab-only request.
- A scope of work with a budget, broken into line items a contractor actually priced rather than a round number.
- A stated exit: sale at completion, or a refinance into longer-term debt.
- An entity in good standing to close in. This is investment property lending, not a loan to an individual for a home they will live in.
- Basic proof of funds for any cash contribution the deal requires beyond what is financed.
Terms, plainly
The whole box, before you ask.
Most lenders make you get on a call to learn this. Here it is.
| Amount | $25,000 to $1,000,000+ |
|---|---|
| Coverage | Up to 100% of purchase and rehab when the deal supports it |
| Rate and points | Set by credit, experience and the deal. Your number is in the term sheet. |
| Decision | 24 to 48 hours from a complete submission |
| Time to close | 5 to 10 days, subject to title clearance |
| Rehab funds | Released in draws against completed work, inspected and wired same day |
| Prepayment | No penalty. Exit whenever the deal is done. |
| Property types | Non-owner-occupied residential, 1 to 4 units, and small multifamily |
Questions
Answered without the phone call.
How is a fix and flip loan different from a rehab loan?
They usually describe the same thing. Some lenders split purchase and rehab into two products; here they are one facility so you are not qualifying for and closing on two loans to do one deal.
Can I get the full rehab budget covered?
Often, yes, when the deal supports it. What the deal supports is set by the finished value and the strength of the exit rather than by a fixed percentage applied to every file.
How fast are rehab draws released?
A draw request is inspected and wired the same day in most cases. The schedule of what each stage is worth is agreed before the first draw, so it is not renegotiated as the project goes.
Do you fund a flip on a property I will move into?
No. This is investment property lending only. A property intended as your primary residence does not fit this instrument regardless of how much work it needs.
Is there a minimum loan size?
The floor is $25,000. Small deals carry the same paperwork as large ones for most lenders, which is why most set a higher floor; here they are wanted.
Guides
Written to go with this program.
How to underwrite a fix and flip before you call a lender
The full pre-application check, in the order a lender will run it. If a deal survives this, it will survive underwriting.
Fix and flip loans with bad credit: what actually gets approved
Credit is a pricing input on an asset based loan, not usually a gate. Here is what a low score actually costs you, and the items that genuinely stop a file.
The 70% rule in house flipping, and the deals where it lies to you
The 70% rule is a filter, not an underwriting model. Here is what it assumes, and the four situations where following it loses money.
Who uses this
Depending on who you are.
Where
Lending is nationwide.
Lending is nationwide. The states below have their own page because they are where the most deals come from, not because they are the only places money goes. If your property is somewhere else, submit it anyway; the terms do not change with the postmark.
New Jersey, Pennsylvania, New York, Texas, Ohio, Indiana, North Carolina, South Carolina, Virginia, Maryland, Delaware. See all markets.
Submit a deal
Let's price it.
No credit pull, no obligation, and a real answer either way. If it is not a fit I will tell you why, and usually who to call instead.
- Terms in 24 to 48 hours
- Written, not verbal
- One person, start to finish
$25K to $1M+ · 5 to 10 days