Fix & Flip

Flippers with track record and rehab plan.

• Up to 90% of purchase + 100% of rehab
• 6–18 month interest-only term
• Experience tiers — better pricing for repeat flippers
• Rehab draws funded on inspection

• Fix-and-flip acquisition

How does fix-and-flip financing work?

A fix-and-flip loan funds both acquisition and rehab on an investment property you intend to sell within 6–18 months. You typically contribute 10–20% of the purchase price and the lender funds the rest plus 100% of rehab costs (drawn in stages as work is completed and inspected). Interest-only payments during the loan term, with a balloon payoff from sale proceeds.

Do I need experience to qualify?

Experience dramatically improves pricing and maximum leverage. Most programs have experience tiers — someone with 5+ completed flips in the last 3 years gets substantially better terms than a first-timer. That said, strong first-time flippers with liquid reserves and a solid GC partner can still qualify.

What's the typical rate and cost?

Expect rates in the 9–12% range plus 1–3 points origination. Higher than conventional because of the short term, higher LTV, and speculative nature. Deal economics work when the after-repair value minus all costs still produces a meaningful profit margin — usually 15%+ of ARV.

Do fix-and-flip loans allow owner-occupancy?

No — fix-and-flip is strictly investor product. Owner-occupied rehab goes through FHA 203(k), Fannie HomeStyle, or a construction-to-permanent loan. Mixing an owner-occupied purchase with fix-and-flip financing is fraud.

How are rehab funds released on a fix-and-flip loan?

Draws based on milestone inspections. Common draw schedule: 20% at framing, 20% at rough-ins, 20% at drywall, 20% at trim/paint, 20% at final. Each draw triggers a lender inspection to verify work completion. Plan cash flow around this — you're floating the work before getting reimbursed.