Fix & Flip Loans — Purchase + Rehab Financing
Purchase plus rehab in one loan, with fast draws and interest-only payments. Built for active flippers who need to move and finish on schedule.
- Up to 90% of purchase + 100% of rehab
- Capped against ARV (typically ~70–75%)
- Fast, milestone-based rehab draws
- Interest-only; optional interest reserve
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A fix-and-flip loan is purpose-built rehab financing: it funds both the purchase and the renovation of a property you intend to improve and sell (or refinance). It's a specialized form of hard money with features tailored to active construction.
How a flip loan is structured
Fix-and-flip loans size against two values at once:
- Purchase / loan-to-cost. The lender advances up to ~90% of the purchase price, so you bring as little as 10% down on the acquisition.
- Rehab budget. The full renovation budget — up to 100% — is committed but held in reserve and released through a draw schedule as work is completed and inspected.
- ARV cap. As a backstop, total loan exposure is capped at roughly 70–75% of after-repair value, ensuring the finished property comfortably supports the debt.
The binding constraint is whichever cap limits the loan lowest — so a great purchase price with a thin ARV, or vice versa, changes how much you can borrow.
Payments and reserves
Fix-and-flip loans are interest-only, keeping monthly carry low while the property earns nothing during renovation. Many include an optional interest reserve — part of the loan set aside to cover those interest payments — so you preserve working capital for the rehab itself.
Note that most lenders charge interest only on drawn funds, so your carry rises as you pull rehab money, not from day one on the full budget.
A worked example
A flip with a $180,000 purchase, $50,000 rehab, and $320,000 ARV:
| Line | Amount |
|---|---|
| Purchase price | $180,000 |
| Loan at 90% LTC | $162,000 |
| Your down payment | $18,000 |
| Rehab budget (held, drawn) | $50,000 |
| Total loan | $212,000 |
| ARV | $320,000 |
| Loan as % of ARV | 66% ✓ (under 75% cap) |
You're into the deal for ~$18,000 down plus closing costs and the first rehab phase, with the rest funded.
What lenders look for
- A realistic scope and budget. Padded ARVs and thin rehab budgets are the top reasons flips lose money — and lenders' appraisers scrutinize both.
- Experience helps. Track record can improve leverage and pricing, but first-time flippers are financeable with a sound deal.
- A clear exit. Sale or refinance within the term. Have a backup if the market shifts.
Get started
Read how to get a hard money loan for the full process, or get a quote with your purchase, rehab, and ARV numbers and we'll size the deal. All fix-and-flip loans are business-purpose financing on non-owner-occupied property.
Frequently asked questions
How much do I need to put down on a fix-and-flip loan?
Often as little as 10% of the purchase price, since lenders advance up to ~90% loan-to-cost on the acquisition and finance the rehab via draws. You'll also need cash for closing costs and to front the first phase of work before the first draw reimburses you.
Does the loan cover 100% of my rehab?
Many fix-and-flip loans fund up to 100% of the renovation budget — but it's released in stages through a draw schedule as work is completed and inspected, not handed over upfront. Total exposure is also capped against ARV (typically ~70–75%).
How do draws work?
You complete a phase of the renovation, request a draw, the lender inspects (in person or by photo), and releases that portion of the rehab budget — usually within 1–3 business days. You typically front the work and get reimbursed.
Can a first-time flipper get a fix-and-flip loan?
Yes. Experience can improve your leverage and pricing, but a well-bought deal with a realistic budget and a sound ARV is financeable even on your first project. The strength of the deal carries more weight than your résumé.
Ready for a real quote?
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