A fix and flip loan is a short-term investment loan used to purchase and renovate a property with the intention of selling it or refinancing it after improvements are complete. These loans are structured around the property’s value and project scope rather than traditional income documentation.
Fix and flip loans typically finance a portion, if not all, of the purchase price and renovation costs. Rehab funds are released in stages of draws as work is completed, and the loan is repaid when the property is sold or refinanced.
Many fix and flip loans can close significantly faster than traditional mortgages, depending on the project details, borrower experience, and documentation readiness. Typically we close fix and flip loans between 10-15 days, and sometimes in as little as 5 days. These timelines are heavily reliant on borrower and 3rd party response times. In other words, the lenders can only move as quickly as you and your team can.
Most fix and flip loans focus on the deal itself rather than personal income or debt. Traditional tax returns are often not required, making these loans attractive to self-employed investors.
ARV stands for After Repair Value — the estimated market value of the property once renovations are completed. Fix and flip loan amounts are often based in part on ARV rather than just the purchase price.
Yes. Fix and flip loans can be used to refinance an existing investment property, either to complete renovations or to access capital before selling or transitioning to long-term financing. Mid-Construction refinancing is also possible where a "cash out" portion of existing equity may be accessed in addition to obtaining rehab funds hold back within the same loan.
Yes. Many investors use fix and flip loans for the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) strategy, refinancing into long-term rental financing or to be sold once renovations are completed.
Experience requirements vary by loan program. Some lenders require previous projects, while others offer options for newer investors with strong deals. Typically, the more experience a borrower has, the better loan terms that will be available such as lower rates and fees.
Fix and flip loans are commonly used for single-family homes, townhomes, 2-4 unit multi-family properties, and other residential investment properties needing renovation. Several of our capital resources also allow 5+ unit multifamily properties but do require proven experience with this collateral type. All properties must be non-owner occupied. Fix and flip lenders lend on investment properties only.
Yes. Most all fix and flip loans include 100% of the renovation or rehab funds, which are disbursed in stages as work is completed and inspected.
Fix and flip loans and hard money loans share similarities, but fix and flip loans are specifically structured for renovation projects and investor exit strategies. The best option depends on project scope, timeline, and financing goals.
Credit score requirements vary by program and lender. Approval is often based on the overall strength of the deal rather than credit alone. Generally speaking, most lenders require a mid-FICO of 660-680 or higher to qualify. However, some programs have no FICO requirements at all.
Most of the time, yes. Reserves are important as they show a borrower has means to not only close the loan, but also begin renovations with cash available to them. This ensures the borrower can complete some work in order to request their first draw for reimbursement. There are some exceptions to needing reserves, but most of the time the requirement involves a percentage of the rehab budget, 3-6 months of interest only payments, in addition to enough funds for down payment and closing costs/fees. This detailed information will be provided on each quote that is issued to you.
Yes, however, there are very strict rules to maintain your IRS tax shelter when using 1031 exchange funds. We will work closely with the borrower and their 1031 intermediary to ensure the property and lender's note meet the IRS requirements. Only a few additional documents will be needed from the borrower to ensure these requirements are met.
Yes, but very few lenders will allow funds from and SDIRA to ensure all tax laws are maintained. Using SDIRA funds means that no personal guarantee can be included in the lender's loan terms and that the loan is non-recourse. Lenders will usually limit max purchase Loan to Value (LTV) to 65% when using SDIRA funds. Additionally, all funds for down payment and closing costs/fees MUST come from the SDIRA. No personal funds can be mixed. We will work closely with your SDIRA custodian to ensure we maintain the IRS requirements.
Yes. Fix and flip loans are commonly issued to LLCs or business entities used for real estate investing. In fact, most lenders prefer an entity on title. Most lenders are happy to lend to LLC, S-Corps, C-Corps, and even a few Trust structures such as an SDIRA Trust or Revocable Living Trust.
Fix and flip loans are short-term loans, often structured for several months to a year, depending on the project and exit plan. Common terms are 6, 12, 18, or 24 months.
For Purchase Transactions:
For Refinance Transactions:
For Mid-Renovation Transactions, we'll need all the same information as a refi but also:
The first step is completing our loan intake form. Once submitted, we’ll review your project details and contact you directly to discuss financing options.
A new construction loan is a financing option used to fund the building of a property from the ground up. These loans are commonly used by real estate investors and developers to cover construction costs and, in some cases, transition into long-term financing after completion.
New construction loans are typically funded in stages, known as draws, as construction milestones are completed. Funds are released after inspections confirm progress, helping manage risk during the build process.
Yes. New construction loans are commonly used for investment properties, including rental properties and speculative builds. Eligibility depends on the project scope, property type, and lender guidelines.
Some new construction loan programs allow financing for both land acquisition and construction, while others require the land to be owned separately. This depends on the specific loan structure and lender requirements.
Many new construction loans are short-term and designed to fund the build phase only. After construction is complete, investors often refinance into permanent financing or sell the property as part of their exit strategy.
Down payment requirements vary by lender and loan program. In most cases, investors are expected to contribute some capital toward the project in addition to loan proceeds.
Depending on the loan structure, borrowers may make interest-only payments during the construction period. Payment terms vary by program.
New construction loans may be used for:
Eligibility depends on project size, location, and lender guidelines.
Most lenders prefer borrowers with prior construction or development experience, while others may allow first-time builders if the project is supported by a qualified builder or team. Nearly any lender only considers experience if the borrower is on title for projects. Any experience acting as only a General Contractor do not typically count as qualified experience.
Timelines vary depending on project complexity, documentation, and appraisal requirements. New construction loans often take longer to close than standard purchase loans.
Yes. Many investors refinance completed construction projects into long-term financing once the property is stabilized or rented.
For Purchase Transactions:
For Refinance Transactions:
For Mid-Construction Transactions, we'll need all the same information as a refi but also:
The first step is completing a loan intake questionnaire with basic information about the project, property, and investment goals. From there, loan options and next steps can be reviewed.
A DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property loan that allows real estate investors to qualify primarily based on the property’s rental income rather than personal income, tax returns, or employment history.
DSCR loans work by comparing a property’s monthly rental income to its total monthly mortgage payment (including principal, interest, taxes, insurance, and association dues if applicable). If the rental income is sufficient to cover the payment, the property may qualify.
DSCR stands for Debt Service Coverage Ratio. It is a calculation used by lenders to measure whether a property generates enough income to cover its debt obligations.
A DSCR of 1.0 or higher typically means the property’s rental income covers the mortgage payment. Some lenders allow lower ratios, while others may require a higher DSCR depending on loan terms and risk factors.
Typically, 1-8 unit DSCR lenders will use Gross Rents / PITIA to determine the ratio and have a minimum of 1.00. 9+ Unit lenders will use NOI / PITIA to determine the ratio and have a minimum of 1.25+.
Yes. DSCR loans are commonly used to purchase single-family, multi-family, or mixed-use investment properties where rental income is the primary qualifying factor.
Yes. DSCR loans can be used to refinance existing investment properties, including rate-and-term refinances or cash-out refinances to access equity for future investments.
In most cases, DSCR loans do not require traditional income documentation such as W-2s or tax returns. Qualification is largely based on the property’s income rather than the borrower’s personal earnings.
Typically, no. DSCR loans focus on property cash flow, not employment status, making them popular with self-employed investors or those with complex income structures.
DSCR loans are commonly used for:
Property eligibility varies by lender.
9+ Unit multifamily property lenders do use the DSCR as a qualifying piece of their loans but these are considered Commercial Loans and have far more requirements than the residential DSCR loan.
There are some lenders who will do DSCR Loans for manufactured, mobile homes, and mixed-use properties, but resources are limited and terms are usually less favorable compared to standard collateral types.
Rental income is usually determined by the LOWER of the two:
Lenders use this information to calculate the property’s DSCR.
Commercial properties will use the actual rent revenues received over a trending period of 3-12 months along with actual expenses to determine the NET Operating Income. The NOI / PITIA will determine the ratio for such properties.
Credit score requirements vary by lender and loan program, but many DSCR loans are available to borrowers with mid-range credit profiles. Stronger credit may result in better loan terms. Most lenders will require a minimum mid-FICO of 660-680. There are some lenders that will allow lower scores, but leverage and rates worsen considerably.
Most of the time, yes. Reserves ensure the borrower can make loan payments should the property become vacant or not get leased right away, if vacant at closing. There are some exceptions to needing reserves, but most of the time the requirement involves 3-6 months of the total mortgage payment, in addition to enough funds for down payment and closing costs/fees. This detailed information will be provided on each quote that is issued to you.
Yes, however, there are very strict rules to maintain your IRS tax shelter when using 1031 exchange funds. We will work closely with the borrower and their 1031 intermediary to ensure the property and lender's note meet the IRS requirements. Only a few additional documents will be needed from the borrower to ensure these requirements are met.
Yes, but very few lenders will allow funds from and SDIRA to ensure all tax laws are maintained. Using SDIRA funds means that no personal guarantee can be included in the lender's loan terms and that the loan is non-recourse. Lenders will usually limit max purchase Loan to Value (LTV) to 70% when using SDIRA funds. Additionally, all funds for down payment and closing costs/fees MUST come from the SDIRA. No personal funds can be mixed. We will work closely with your SDIRA custodian to ensure we maintain the IRS requirements.
No. DSCR loans are available to both new and experienced real estate investors, as long as the property and borrower meet lender guidelines.
Yes. Some lenders allow DSCR loans for short-term rental properties, but qualification methods and income calculations may differ. Eligibility depends on the lender and property type.
Closing timelines vary, but DSCR loans often close in a timeframe similar to other non-QM investment loans, assuming documentation and appraisal requirements are met promptly. Generally speaking, expectations of between 25-35 days to close from submission is normal.
If a Purchase Transaction:
For Refinance Transactions:
You can start by completing a loan intake questionnaire with basic information about the property and your investment goals. From there, you’ll be contacted to review options and next steps.
Copyright © 2026 Belsky Mortgage, LLC
Belsky Mortgage, LLC is a Florida Limited Liability Company serving commercial and investment real estate investors in all 50 states.
Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.