Fix and Flip Loans for Real Estate Investors

Fix and flip loans are ideal for real estate investors purchasing non-owner-occupied properties with the intent to renovate and resell for profit. These loans are commonly used by both first-time and experienced investors working on single-family, condo, or 2-4 unit multifamily renovation projects.  We also have lenders who will lend on 5+ unit multifamily projects for those with direct experience.

• Property investors purchasing distressed or value-add properties
• Investors completing cosmetic or full-scale renovations
• Borrowers needing fast closings and short-term financing
• Investors planning to sell or refinance after renovations
• Mid-Construction projects where rehab funds have ran out and the project has enough equity available to refinance

Fix and flip loans are short-term real estate loans that fund the purchase of an investment property and may also include renovation costs. Loan approval is primarily based on the property, renovation scope, and projected after-repair value rather than personal income.

Funds for renovations are typically disbursed in stages as work is completed, allowing investors to manage project cash flow efficiently. Most fix and flip loans are interest-only during the renovation period.

• Financing based on after-repair value (ARV)
• Short-term loan options for purchase and refinance
• Rehab funding available for qualified projects
• Fast approval and closing timelines
• Flexible underwriting for real estate investors
• No owner-occupancy required

Fix and flip loans can be used for both property purchases and refinances. Purchase loans help investors acquire and renovate properties, while refinance loans allow investors to access equity after renovations are completed.

Many investors use fix and flip refinances as part of a BRRRR strategy or transition into longer-term rental financing such as a DSCR loan after the rehab phase.

In many instances, we can help borrowers who are mid-construction and need additional funds.  This adds a few more layers to qualify but we have excellent resources that help borrowers get their projects back on track.

• Loan terms typically range from 6 to 24 months
• Interest-only payment options may be available
• Loan amounts based on purchase price, rehab budget, and ARV
• Property type, project scope, and borrower experience influence terms.

For example, a new borrower with no direct experience may be offered terms such as 90% of Purchase Price, 100% of Rehab Funds for 11.99% interest for 12 months.  The loan parameters are limited by 90% of Purchase Price (LTP)  and 75% of Loan to ARV (LTARV).

Compared to a borrower who can demonstrate 5 completed projects may be offered terms such as 92.5% Loan to Cost (LTC) with 100% of Rehab Funds for 8.99% Interest for 12 months.  The loan parameters are limited by 92.5% of Loan to Cost (LTC)  and 75% of Loan to ARV (LTARV).

These ratios and thresholds vary greatly from lender to lender based on each borrower's unique scenario.  These are examples provided and indicative of terms that may be offered, but not guaranteed.

For Purchase Transactions:

• Full property address of the property you intend to purchase or refinance
• The purchase price you will offer
• Estimated renovation budget and brief overview of the scope of work (lite rehab versus moving walls, fixing foundations, adding square footage, etc...)
• Expected ARV once renovations are completed
• Timeline to complete the renovations
• How title is going to be held (individual, entity, or trust)
• Borrower's experience level and exit strategy (sell or refinance to hold as a rental)
• Borrower's estimated FICO scores
• Borrower's current liquidity available

For Refinance Transactions:

• Full property address of the property you intend to refinance
• The purchase price and date of original acquisition
• Amount of rehab spent on improvements since acquisition, if any
• Current Debt owed on the property
• Estimated renovation budget and brief overview of the scope of work  (lite rehab versus moving walls, fixing foundations, adding square  footage, etc...)
• Expected ARV once renovations are completed
• Timeline to complete the renovations
• How title is currently held or will be held at closing (individual, entity, or trust)
• Borrower's experience level and exit strategy (sell or refinance to hold as a rental)
• Borrower's estimated FICO scores
• Borrower's current liquidity available

For Mid-Renovation Transactions, we'll need all the same information as a refi but also:

• Estimated AS IS value of the property, as it sits now
• Amount of rehab spent so far
• Amount of rehab budget remaining to complete
• Detailed narrative to why the project is incomplete
• Current photos or videos of the project as it currently sits

These criteria are all that is needed to provide a soft quote and often take as little as a few hours to provide.

Please visit our comprehensive FAQ page for more info or complete our Quick App to get your quote started now.