Fix & Flip Loans
Fix and flip loans: fund the purchase and the rehab
Fix and flip loans are short-term financing for investors who buy a property, renovate it and sell it. They can cover part of the purchase price and the renovation budget, based on the deal.
Key facts
- Available in
- New York, New Jersey, Florida, Pennsylvania
- Loan purpose
- Business-purpose investment properties, not a home you will live in
- Sized on
- Purchase price, rehab budget and after-repair value (ARV)
- Term
- Short term, commonly 12 to 24 months, often interest-only
- Rehab funds
- Usually released in draws as work is completed and inspected
Who it's for
- Investors buying distressed or dated properties to resell
- First-time flippers with a solid plan and contractor
- Experienced investors who need to move quickly on a deal
- Buyers whose project will not qualify for a conventional mortgage
Lenders focus on the deal as well as the borrower: what you are paying, what the work will cost and what the property should be worth when it is finished. Credit, cash reserves and your track record still affect the rate and how much you can borrow.
As a broker, we compare investor lenders for your project and help you put together the purchase contract, scope of work and budget. Before you make an offer, we can run the numbers with you so you know what to expect.
Questions
Do I need flipping experience?
Not always. Some lenders work with first-time investors, though experience can improve your terms and how much you can borrow.
What do I need to bring?
Usually the purchase contract or property address, your rehab budget and scope of work, and proof of funds for your down payment and reserves. Requirements vary by lender.
Can I use this loan on a home I plan to live in?
No. Fix and flip loans are for investment properties. If you plan to live in the home, look at our renovation loans.
What if I decide to keep the property?
Many investors refinance into a long-term rental loan, such as a DSCR loan, once the work is finished and the property is rented.
Questions about Fix & Flip Loans?
A licensed loan officer will walk you through the numbers, usually the same day.