Fix-and-Flip Financing for Residential Investors

A fix-and-flip loan is short-term, interest-only financing to buy a residential property, renovate it and sell or refinance it. The purchase is funded at closing, renovation money is released in draws as work is completed, and the loan is repaid from the sale or a refinance, usually within 12-24 months.

Leverage is sized on cost and after-repair value, confirmed per deal. The required borrower equity is confirmed for your deal.

Experience matters, but it is not an automatic no. First-time and limited-experience investors are reviewed case by case, usually with more conservative leverage, a clear scope of work and contractor bids. Our first-deal checklist shows what to have ready.

They are business-purpose loans. The property must be investor-owned, not your home, and the loan is made to your entity based on the deal rather than as a consumer mortgage.

No. You can sell or refinance as soon as the project is done without a prepayment penalty.

Fix-and-flip loans are interest-only for 12 to 24 months. They fund the purchase at closing, with renovation funds held in reserve and released in inspection-based draws as work is completed. Leverage is sized on cost and after-repair value and confirmed per deal.

ARV is the estimated market value of the property after all planned renovations are complete. Lenders use ARV to gauge the exit and size the loan. The loan-to-ARV limit is confirmed per deal.

Prior fix-and-flip experience is preferred, not required. A documented track record of completed projects helps. Investors with less experience are reviewed for the whole deal, including scope, budget and exit plan.

Yes. A common exit strategy for fix-and-flip borrowers who choose to hold the property as a rental is to refinance into a long-term DSCR loan once the property is stabilized with a tenant. We can discuss both the fix-and-flip and the DSCR take-out option at the time of origination.