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Fix-and-Flip Financing

Fix-and-flip investors need financing that can cover both the property acquisition and the renovations required to prepare it for resale. We offer short-term financing for investors purchasing one- to four-unit residential properties that need rehabilitation. With financing based on the project cost and expected after-repair value, qualified investors can preserve more of their available capital while completing renovations and preparing the property for sale.

Fix-and-Flip Program Highlights

  • Financing up to 80% of the total project cost
  • Up to 100% of eligible rehabilitation costs
  • Maximum financing of 75% of the after-repair value
  • Loan amounts available up to $5 million
  • Minimum credit score of 650
  • Available for investor-owned properties
  • Eligible for one- to four-unit residential properties
  • Available nationwide with limited state exclusions
  • Closings possible in as little as two weeks

Understanding Loan-to-Cost

Loan-to-cost, or LTC, compares the loan amount with the property’s total project cost. That cost generally includes the purchase price and eligible renovation expenses. With financing available up to 80% LTC, qualified investors may be able to finance a substantial portion of the acquisition and rehabilitation budget while contributing less cash to the overall project.

Up to 100% Rehabilitation Financing

Renovation expenses can represent a significant portion of a fix-and-flip investment. This program may finance up to 100% of eligible rehabilitation costs, subject to the maximum LTC and ARV limits.

  • Kitchens and bathrooms
  • Roofing and exterior repairs
  • Plumbing and electrical work
  • Heating and cooling systems
  • Flooring, painting, and finishes
  • Structural repairs
  • Property reconfiguration
  • Other approved improvements

Financing Based on After-Repair Value

The after-repair value, or ARV, is the estimated market value of the property once the planned renovations are completed. The maximum loan amount cannot generally exceed 75% of the property’s supported ARV. This requirement helps ensure that sufficient equity remains in the project after renovations are completed.

  • Loan-to-cost
  • Rehabilitation budget
  • After-repair value
  • Maximum program loan amount
  • Complete borrower and property qualifications

Eligible Properties

Fix-and-flip financing is available for investor-owned residential properties containing one to four units, including:

  • Single-family homes
  • Two-family properties
  • Three-family properties
  • Four-family properties

Nationwide Fix-and-Flip Lending

The program is available nationwide except in:

  • Minnesota
  • North Dakota
  • South Dakota
  • Vermont

Fast Closings for Time-Sensitive Purchases

Fix-and-flip opportunities often involve auctions, distressed properties, off-market transactions, and sellers who require a quick closing. Qualified transactions may close in as little as two weeks when the borrower provides the necessary documentation and the appraisal, title work, insurance, and renovation review are completed promptly.

Contact us to discuss the property, purchase price, renovation plan, estimated ARV, and required closing date. We will review the complete scenario and help determine whether our fix-and-flip program is the right fit.