Fix & Flip Loans for Real Estate Investors

A fix and flip loan can fund 95% LTC plus 100% of rehab, including draw schedule for rehab funds, while remaining within 75% of the property's expected after-repair value. The program maximum is $5M. These limits work together, so the final loan is controlled by whichever calculation produces the lower supported amount.

Loan-to-cost, or LTC, compares the loan with the purchase price and approved renovation budget. After-repair loan-to-value, or ARLTV, compares the loan with the appraiser's supported value after the planned work is complete. A strong purchase basis and a realistic scope can create room within both limits, but neither an estimate nor a contractor bid replaces appraisal and underwriting review.

The practical result is a capital structure tied to the deal itself. Purchase funds are available at closing, while approved renovation funds are released through draws as work is completed. Borrowers should still plan for equity, closing costs, reserves, and any project costs that are outside the approved scope.

A financeable fix and flip starts with an investment property, a credible scope of work, a supportable renovation budget, and a clear exit plan. Underwriting reviews the property condition, acquisition basis, planned improvements, expected market value, borrower liquidity, credit profile, and the team's ability to execute the project.

Experience helps because completed projects can show that the borrower understands budgets, contractors, draws, and resale timing. First-time flippers are still considered. In those cases, a well-developed plan, qualified contractor support, appropriate reserves, and a conservative exit become especially important.

Credit is reviewed as part of the full file, but the decision is not reduced to a published score threshold. Terms are confirmed per deal after the property, borrower, budget, and exit have been evaluated. No tax returns and no W2s are required for this asset-based business-purpose program.

Rehab funds are released as reimbursement draws after completed work is inspected and confirmed. At closing, the approved renovation budget is reserved for the project rather than handed over as unrestricted cash. The borrower completes an agreed portion of the work, submits a draw request, and documents the completed items.

An inspection then verifies progress against the approved scope. Once the completed work is confirmed, the eligible amount is released. This repeats through the project. Keeping invoices, change orders, and progress photos organized helps the draw process move efficiently and gives every party a shared record of what has been completed.

Material changes should be discussed before the work moves too far. A different layout, a larger scope, or an unexpected repair can affect the budget and the value conclusion. Draw availability, eligible costs, and inspection requirements are confirmed in the final loan documents and remain subject to underwriting and approval.

Fix and flip rates are starting at 9.00%, subject to underwriting, with origination starting at 1.50% and a 12-month term. The loan uses interest-only payments, which keeps scheduled debt service focused on the outstanding principal during the renovation and marketing period.

Actual pricing depends on the property, leverage, borrower strength, experience, scope, liquidity, and exit strategy. A lower-leverage request or a well-supported project may price differently from a complex renovation at the edge of program limits. Every quote is specific to the submitted deal and is not final until underwriting is complete.

First-time flippers can be considered when the deal and execution plan are credible. Underwriting looks for a realistic budget, qualified contractor support, sufficient liquidity, a property with a supportable value story, and an exit that does not depend on perfect market conditions.

A worked example shows how the LTC calculation and ARLTV cap can affect proceeds and required cash. The lower supported result controls the loan amount.

A complete initial submission identifies the property, purchase terms, renovation budget, expected finished value, borrower experience, credit profile, and current stage of the transaction. A clear scope and contractor estimate make the first review more useful because they connect requested proceeds to specific work.