Up to 90% of price · 100% of rehab · 75% of ARV
Fix and flip loans that fund the rehab too
Up to 90% of the purchase price and 100% of the rehab budget, with the whole loan capped at 75% of what the finished house is worth. No experience required.
Fix and flip loan terms
| Use | Buy, renovate and sell a non-owner-occupied home |
|---|---|
| Property types | Single family (attached or detached), 2-4 units, townhomes, warrantable condos |
| Loan amount | $50,000 to $3,000,000 |
| Term | 12 months; 18 months case by case |
| Purchase advance | Up to 90% of the purchase price (loan-to-cost) |
| Rehab | Up to 100% of the rehab budget, paid in draws. Heavy rehabs (budget over 50% of total cost) are eligible |
| Cap on total loan | Up to 75% of after-repair value (ARV) |
| Experience | None required |
| Borrower | Business entity; full recourse |
| Foreign nationals | Eligible (some countries excluded) |
| Draws | Rehab funds are paid out as completed work is verified, against your line-item budget |
| Minimum FICO, points, reserves | Not published; quoted per loan |
How the loan is sized
Three numbers set the loan: the purchase price, the rehab budget and the after-repair value (ARV). The lender will fund up to 90% of the price and all of the rehab. Then it checks that total against 75% of the ARV and takes the lower number.
Worked example. Buy at $240,000, $65,000 of rehab, ARV $410,000. 90% of the price plus the full rehab is $281,000. 75% of the ARV is $307,500, so the cap does not bite and the loan is $281,000. You bring $24,000 of the price plus points and closing costs.
The ARV cap is where most deals get cut. On a thin-margin deal (say the same house only appraises at $360,000 finished), 75% of ARV is $270,000 and the purchase advance drops by $11,000. Run your deal in the calculator below before you sign the contract, not after the appraisal.
Interest only on what you have drawn
The rehab money sits in a holdback and earns no interest until it is paid out to you. So a $65,000 budget drawn evenly over a five-month rehab costs you interest on roughly half of it on average. That is a real saving over a lender that charges interest on the full loan from day one, and it is how the calculator here figures interest.
To price the full cost of the money, points and fees included, use the hard money loan calculator. Short-term rates follow SOFR and prime; today's numbers are here, and other lenders' flip terms are compared here.
What you need
- A purchase contract, the scope of work and a line-item rehab budget
- An LLC or corporation to borrow in, with you as personal guarantor
- Proof of funds for the down payment, points and closing costs
- A track record if you have one; it is not required
Eligible: single family homes (attached or detached), 2-4 units, townhomes and warrantable condos, from $50,000 to $3,000,000. Not eligible: a home you or a relative will live in.
Run your numbers
Pencils11.5% of ARV
Profit after every cost
$47,309
On $52,991 of your own cash, that is a 89% return over 7 months.
- Loan amount
- $281,000
- Limited by
- program leverage
- Purchase advance
- $216,000
- Rehab funded in draws
- $65,000
- Cash to close
- $33,220
- Interest (drawn balance)
- $15,221
- Points
- $5,620
- Holding and selling
- $33,250
- Your cash in the deal
- $52,991
- 70% rule max offer
- $222,000
Interest assumes rehab draws arrive evenly, so on average half the rehab money is outstanding. Before income tax.
Questions people ask
How much do I need to bring to closing?
At least 10% of the purchase price, plus points and closing costs. If the ARV cap cuts the loan, the shortfall comes out of the purchase advance, so you bring more. The calculator on this page shows the exact figure for your deal.
Do I need flipping experience?
No. First-time flippers are eligible. Experience can still improve pricing and leverage, so tell us about any projects you have finished.
How do rehab draws work?
The rehab budget is held back at closing and paid out as work is done. Once completed work is verified, the draw is paid. Draws reimburse finished work; material deposits generally are not advanced.
What if the rehab costs more than half the deal?
Heavy rehabs are eligible, including projects where the budget is more than 50% of total cost. On those the lender looks harder at the cost basis and the ARV cap, so a realistic budget and good comps matter more.
How long is the loan?
12 months, with 18 months available case by case. Plan the schedule so the sale closes inside the term with room for a slow market.
Can I refinance into a rental loan instead of selling?
Yes. That is the BRRRR path. Once the work is done and the house is leased, a 30-year DSCR loan can pay off the flip loan. The BRRRR calculator shows how much cash comes back out.
Have a deal under contract?
Send the numbers. We will tell you plainly whether it fits and what the loan looks like.