Fix-and-Flip Loan

Overview

Fix-and-flip loans (a flavor of hard money / private money) finance both the acquisition and the renovation of a property a sponsor plans to resell. Loans are short — typically 6-18 months — interest-only, and often cover a substantial percentage of purchase plus 100% of rehab, paid out in draws against completed work.

Underwriting is asset-driven: the lender focuses on the deal's after-repair value (ARV), the rehab budget, and the sponsor's experience. Personal income is usually a non-issue. Rates and fees are higher than long-term financing because of the speed, flexibility, and short term.

Who it's for

Real estate investors flipping single-family or 1-4 unit properties
Experienced rehabbers scaling project volume
New investors with strong contractor partnerships
Wholesalers transitioning into flipping

What's typically reviewed

Deal economics — ARV, rehab budget, profit margin
Sponsor experience (more flips closed = better terms)
Down payment / skin in the game
Reserves to carry interest payments and contingencies
Credit profile (lighter than agency, but still reviewed)

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

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