Who it may suit
Investors with a defined project, realistic budget, documented experience where required and a clear sale or refinance plan.
Investors / Renovation projects
Fix and flip loans for your next project
A property with potential. A plan for getting there.
Purchase, renovation budget, draw schedule and exit strategy all belong in the same conversation. Explore how fix and flip financing works and what can change the outcome of a project.
Opens our secure inquiry form in ARIVE in a new tab.
The useful starting point
How does renovation financing work?
Short-term investment financing may fund a property purchase and eligible improvements, often with renovation funds released in stages. The amount you can borrow and when funds are available depend on the property, project and lender.
Documents to prepare
- Purchase contract and detailed work budget
- Contractor information and project timeline
- Funds for closing, carrying costs and contingencies
What varies
Advance amounts, draw inspections, interest charges, extension fees and exit requirements.
Your next step
Tell us where the property is and what you want to do. We can help identify the information needed to review your scenario and connect you with the right team member.
Ask a general question →Stress-test a rental exit →
The starting point
Short-Term Investor Financing
A fix and flip loan is a short-term bridge loan used to purchase, renovate, and resell or refinance an investment property. The best structure depends on the project scope, draw schedule, after-repair value (ARV — the estimated value of the property once renovation is complete), and planned exit.
Many fix and flip lenders size loans around the purchase price, approved rehab budget, and after-repair value (ARV) rather than a conventional owner-occupied income model. Rehab funds are typically released in stages called draws as work is completed — timing, contractor review requirements, leverage, pricing, and extension policies vary by lender and by deal complexity.
ARV-aware bridge structure
Draw-based rehab funding
Sale or refinance exit flexibility
- Wholesale lender comparison — draw speed, ARV tolerance, and rehab appetite differ materially across lenders
- Project-scope matching — cosmetic refreshes and heavier renovations are not underwritten the same way
- Exit-driven structuring — sale-focused projects and refinance-focused projects often call for different bridge lenders
How Fix and Flip Financing Works
A fix and flip loan is usually a short-term bridge structure designed to fund both the purchase and the renovation of a property expected to appreciate through improvement. The key underwriting inputs are often the purchase basis, approved rehab budget, projected after-repair value, and your exit plan.
Not all fix and flip lenders solve the same problem. Some are stronger on faster closings, some on higher leverage, some on first-time flippers, and some on larger or heavier renovation scopes. Matching the project to the lender is often where the margin is made or lost.
Many programs are less dependent on traditional personal income documentation than conventional loans, but liquidity, credit, experience, and entity structure can still matter depending on lender and program tier.
Planning to keep the property instead of selling it? Explore DSCR rental property loans and use the DSCR calculator to estimate rental-income coverage. Compare conventional investment-property financing as another possible exit; refinancing is not automatic.
1
Acquire — Close on the Purchase
The bridge lender usually funds the acquisition based on the purchase price, value support, and your overall project structure. Speed can be a major differentiator.
Acquisition
2
Approve the Scope — Budget and Rehab Review
The lender reviews the contractor scope, line-item budget, and project plan to determine how rehab dollars will be advanced and how much leverage the deal can support. It uses its accepted valuation of the completed property, not simply your projected resale price. Ask which valuation method is required and supply comparable sales and a clear scope of work. A lower accepted ARV can reduce the financing available.
Scope Review
3
Draws — Release Rehab Funds in Stages
Rehab funds are released in stages — called draws — as completed work is inspected and verified. How quickly a lender releases each draw, associated fees, and how much the lender holds back until final completion vary by lender — and can meaningfully affect your project cash flow.
Draw Administration
4
Exit — Sell or Refinance
Some projects are designed for a sale. Others are intended to roll into a rental hold through a refinance. The intended exit should influence lender choice from the start.
Exit Planning
5
Recycle Capital — Move to the Next Deal
Holding several properties? Cross-collateralization may be another structure to discuss, where available. Compare its shared-collateral and release restrictions with financing each property separately.
A well-managed project returns capital and experience to support the next acquisition, but timeline control and realistic ARV assumptions remain central to profitability.
Repeatable Process
What does fix and flip financing cost?
Compare the total expected cost over your project timeline, not just the headline interest rate. Ask for a written breakdown of charges and what changes if the project runs late.
Origination points
A point equals 1% of the amount used to calculate the fee. Ask whether points apply to the full loan commitment, how they are paid and whether additional origination charges apply.
Interest and payment timing
Confirm the rate, payment schedule and interest basis: funds advanced or another amount specified in the agreement. Ask about minimum interest and early-payoff charges rather than assuming an early sale eliminates all remaining costs.
Closing and draw costs
Ask about valuation, title, legal and recording charges, plus draw-processing and inspection fees. Check how many draws your budget requires and whether you must pay contractors before reimbursement.
Extensions and delays
Extra months can mean additional interest, taxes, insurance and utilities. An extension may carry a fee or require a new review; it is not guaranteed. Keep a contingency for delays and overruns.
Business-purpose financing
These programs are generally intended for investment projects rather than a home you plan to occupy. For qualifying business-purpose credit, federal mortgage disclosures can differ from those used for a consumer home loan. Tell us your intended use, request written terms and confirm the requirements for the specific transaction. This does not mean all legal requirements or protections disappear. See the CFPB’s business-purpose exemption.
Fix and Flip Financing at a Glance
Fix and flip loans are short-term tools, not permanent mortgages. The figures below reflect commonly seen structures across bridge and hard-money style programs. “Hard money” generally describes asset-focused financing that emphasizes the property and project, although borrower review still matters. Actual terms vary by project type, borrower profile, and lender.
Core Structure — Acquisition + Rehab
Loan-to-Cost (LTC)
Up to 80–90%
LTC is the percentage of your total project cost (purchase price plus approved rehab budget) the lender will finance. At an assumed 90% LTC, a $300,000 project produces a $270,000 cost-based limit, before any lower ARV cap or other lender restriction.
ARV Cap
65–75%
After-repair value (ARV) is the estimated property value once renovation is complete. Many lenders cap total loan exposure to 65–75% of that projected value.
Typical Term
6–18 Mo.
Short-term, commonly interest-only (IO — meaning you pay only interest, not principal, during the loan term), with extension rules that vary
Financing Costs
Points, Interest and Fees
Compare the written cost breakdown, interest basis, draw charges and extension terms for your project timeline. Charges and payment timing vary by lender.
Funding Style
Draw-Based
Rather than receiving all rehab funds at closing, they’re released in stages (called draws) as completed work is verified. Some programs charge interest on funds advanced; others use a different interest basis. Confirm whether undrawn rehab funds accrue interest and whether a minimum interest charge applies.
Borrower / Property Considerations
Credit Range
620–680+
Some programs are more flexible; stronger credit often improves pricing and leverage
Experience Tiers
First-Time to Seasoned
Many lenders price or cap leverage based on prior completed flips
LLC Title
Commonly Allowed
Guarantee requirements and document checklists vary by lender
Property Types
SFR to 2–4 Unit
Condo, mixed-use, and heavier projects are more program-specific
These are illustrative ranges only. Actual leverage, fees, extension policies, draw procedures, and eligibility depend on the lender, the market, the property, your experience, and the file as a whole. Not a commitment to lend.
A starting point for a conversation. These details describe possible program features. Lender requirements and your full circumstances determine the options available.
Discuss your scenario (opens ARIVE in a new tab)Is Fix and Flip Financing Right for You?
Strong Fit — Works Well When
- You have a clear value-add plan and a realistic after-repair value based on supportable comps
- You can manage renovation cash flow around a lender’s draw timing and inspection process
- Your exit strategy is defined before you close, whether that means sale or refinance
- You understand carrying costs — the ongoing expenses (loan interest, taxes, insurance, utilities) you pay while renovating — and can budget for contingencies if the project takes longer than planned
- You want short-term capital that matches an active renovation and disposition strategy
Consider Carefully — Potential Misalignment
- Your ARV depends on optimistic resale assumptions rather than conservative comparable support
- You need immediate access to all rehab funds and cannot work within a draw-based structure
- The renovation is unusually heavy, uncertain, or permit-sensitive without enough contingency or a clearly vetted rehab scope
- You are not sure whether the project will be sold or held, but lender selection is being made anyway
- Your timeline leaves little room for market delays, contractor slippage, extension costs, or a contractor’s miss on budget
Who Uses Fix and Flip Financing
The common denominator is not just flipping experience. It is a project that can be underwritten with a realistic scope, a disciplined budget, and a believable exit.
01
The First-Time Flipper
A newer investor with a conservative project who may need a lender comfortable with lower leverage, stronger liquidity, or more documentation.
02
The Active Flipper
An experienced operator who prioritizes execution speed, higher leverage, and predictable draw administration across multiple projects.
03
The Self-Employed Investor
A borrower who prefers an asset- and project-based structure instead of a conventional income-driven mortgage path.
04
The Builder-Operator
A borrower whose construction knowledge or contractor network supports a heavier or more complex renovation scope.
05
The BRRRR Crossover Buyer
An investor using a flip-style bridge loan for the rehab phase but planning to refinance into a long-term rental product later.
06
The Market Specialist
An investor focused on a specific geography and buying strategy who needs a lender matched to that property type and exit profile.
Exit Comparison
Fix and Flip Exit Strategy: Sell vs. Refinance
Many fix and flip loans can support either a sale or a refinance exit, but the planned path should affect how the bridge is structured and which lender makes sense.
Compare each option below. On a phone, each row is shown as a labeled card.
| What to compare | Exit Path A — Sell the Property | Exit Path B — Refinance and Hold |
|---|---|---|
| Primary goal | Complete the rehab and liquidate at resale value | Complete the rehab and transition into a hold strategy |
| Best fit | Classic flip execution | BRRRR or fix-to-rent path |
| Timeline pressure | High — sale timeline matters | Moderate — lease-up and refi prep matter |
| Key underwriting concern | ARV and resale liquidity | Rent support and refinance eligibility |
| Lender emphasis | Speed and draw execution | Bridge terms compatible with long-term exit |
| Carry risk | Market timing risk and potential extension fees if the project runs long | Seasoning, valuation, and rent timing |
| Permanent financing needed | No | Yes — often DSCR loans or conventional investor financing |
| Common challenge | Overestimating final resale value | Assuming the refinance will be automatic |
| Who benefits | Investors seeking shorter capital cycles | Investors building long-term rental portfolios |
- What to compare
- Primary goal
- Exit Path A — Sell the Property
- Complete the rehab and liquidate at resale value
- Exit Path B — Refinance and Hold
- Complete the rehab and transition into a hold strategy
- What to compare
- Best fit
- Exit Path A — Sell the Property
- Classic flip execution
- Exit Path B — Refinance and Hold
- BRRRR or fix-to-rent path
- What to compare
- Timeline pressure
- Exit Path A — Sell the Property
- High — sale timeline matters
- Exit Path B — Refinance and Hold
- Moderate — lease-up and refi prep matter
- What to compare
- Key underwriting concern
- Exit Path A — Sell the Property
- ARV and resale liquidity
- Exit Path B — Refinance and Hold
- Rent support and refinance eligibility
- What to compare
- Lender emphasis
- Exit Path A — Sell the Property
- Speed and draw execution
- Exit Path B — Refinance and Hold
- Bridge terms compatible with long-term exit
- What to compare
- Carry risk
- Exit Path A — Sell the Property
- Market timing risk and potential extension fees if the project runs long
- Exit Path B — Refinance and Hold
- Seasoning, valuation, and rent timing
- What to compare
- Permanent financing needed
- Exit Path A — Sell the Property
- No
- Exit Path B — Refinance and Hold
- Yes — often DSCR loans or conventional investor financing
- What to compare
- Common challenge
- Exit Path A — Sell the Property
- Overestimating final resale value
- Exit Path B — Refinance and Hold
- Assuming the refinance will be automatic
- What to compare
- Who benefits
- Exit Path A — Sell the Property
- Investors seeking shorter capital cycles
- Exit Path B — Refinance and Hold
- Investors building long-term rental portfolios
This section compares strategy, not guaranteed terms. Sale timelines, lease-up expectations, seasoning standards, refinance leverage, and draw structures vary by lender and market conditions.
Fix and Flip Loan Process
We try to match the bridge lender to the project — not just to the rate sheet. That means reviewing the scope, the draw cadence, the borrower profile, and the intended exit before the file is placed.
1
Scenario Review
Review purchase price, rehab budget, ARV support, exit plan, and experience level before recommending a lender.
2
Lender Match
Compare lenders based on leverage, draw process, timeline, fees, and fit for the project complexity.
3
Close & Start Rehab
Close the acquisition, begin the work, and coordinate the first stages of the rehab plan.
4
Manage Draws & Timeline
Request draws, manage inspections, and keep the scope and carrying period aligned with the budget.
5
Execute the Exit
Sell the finished asset or move into refinance documentation for a rental hold, depending on the original plan.
Fix and Flip Loan Requirements and Deal Structure
These are illustrative examples designed to show the kinds of projects that may fit different bridge structures. They are not quotes, approvals, or promises of results.
Scenario A — First-Time Cosmetic Flip
- Purchase price
- $210,000
- Rehab budget
- $38,000
- After-repair value
- $335,000
- Projected term
- 9 months
- Exit plan
- Sale
Illustrative funding — Scenario A
Assume a 90% loan-to-cost limit and a 70% ARV cap. Both must be satisfied; these are example assumptions, not offered terms.
- Purchase + approved rehab budget
- $248,000
- 90% of project cost
- $223,200
- 70% of $335,000 ARV
- $234,500
- Lower of the two limits
- $223,200
- Investor project-cost contribution
- $24,800
The contribution excludes financing charges, other closing expenses, carrying costs and contingency. It is not a cash-to-close estimate: initial advances, rehab holdbacks, reimbursement timing and reserve requirements determine when cash is needed. Other lender limits may reduce proceeds further.
A lighter cosmetic project can sometimes fit a more streamlined bridge structure, but first-time investor terms often remain more conservative than seasoned-operator terms. Draw process and contingency planning still matter.
SFR
Single-Family — Entry-Level Flip
First-time investor, straightforward scope
Scenario B — Experienced Value-Add
- Purchase price
- $485,000
- Rehab budget
- $110,000
- After-repair value
- $780,000
- Projected term
- 12 months
- Exit plan
- Sale
Illustrative funding — Scenario B
Assume a 90% loan-to-cost limit and a 70% ARV cap. Both must be satisfied; these are example assumptions, not offered terms.
- Purchase + approved rehab budget
- $595,000
- 90% of project cost
- $535,500
- 70% of $780,000 ARV
- $546,000
- Lower of the two limits
- $535,500
- Investor project-cost contribution
- $59,500
The contribution excludes financing charges, other closing expenses, carrying costs and contingency. It is not a cash-to-close estimate: initial advances, rehab holdbacks, reimbursement timing and reserve requirements determine when cash is needed. Other lender limits may reduce proceeds further.
An experienced flipper may have access to broader lender options when the project is larger and the renovation plan is well documented. The lender fit often comes down to draw speed, leverage tolerance, and project complexity.
SFR
Single-Family — Metro Market
Repeat investor, multiple prior flips
Scenario C — Fix-to-Rent Conversion
- Purchase price
- $265,000
- Rehab budget
- $62,000
- After-repair value
- $420,000
- Projected rent
- $3,150
- Exit plan
- Refinance
Illustrative funding — Scenario C
Assume a 90% loan-to-cost limit and a 70% ARV cap. Both must be satisfied; these are example assumptions, not offered terms.
- Purchase + approved rehab budget
- $327,000
- 90% of project cost
- $294,300
- 70% of $420,000 ARV
- $294,000
- Lower of the two limits
- $294,000
- Investor project-cost contribution
- $33,000
Here the ARV cap reduces financing by $300 below the cost-based limit. The contribution excludes financing charges, other closing expenses, carrying costs and contingency. It is not a cash-to-close estimate: initial advances, rehab holdbacks, reimbursement timing and reserve requirements determine when cash is needed. Other lender limits may reduce proceeds further.
Some investors use a fix and flip bridge for the rehab phase even when the long-term goal is to keep the property as a rental. In those cases, the refinance path should be considered before the bridge closes.
BRRR
Single-Family — Hold Strategy
Bridge now, DSCR later
Illustrative hypothetical scenarios only. Actual proceeds, leverage, pricing, draw timing, and profit outcomes vary by lender, contractor performance, market conditions, and property execution.
Fix and Flip Loan Questions Answered
Grouped questions about how fix and flip financing is sized, how lenders review the rehab plan, and how the exit should shape the loan structure from day one.
How fix and flip loans are structured
What is a fix and flip loan and how does it differ from a conventional mortgage?
A fix and flip loan is a short-term bridge loan used to buy, renovate, and exit an investment property. Conventional mortgages are designed for longer-term repayment, while fix and flip loans are structured around project execution, value creation, and timing.
How much can I borrow on a fix and flip loan?
A fix and flip loan is usually sized from the purchase price, rehab budget, and projected after-repair value. The exact leverage depends on experience, scope complexity, liquidity, credit, and how the lender views the risk of the deal.
What is ARV and why does it matter so much?
ARV means after-repair value, or the projected value of the property once the renovation is complete. It matters because many lenders use ARV to help determine leverage, rehab holdback amounts, and whether the exit plan looks realistic.
What does a fix and flip loan cost?
Compare origination charges, interest, closing expenses, draw or inspection fees and potential extension costs. The total depends on the lender, project timeline and loan terms. Ask for a written breakdown that includes the interest basis and any minimum-interest or early-payoff provisions.
Do I pay interest only on funds already drawn?
That depends on the loan agreement. Some programs charge on funds advanced; others use a different basis. Confirm how undrawn rehab funds, minimum interest and the timing of each advance affect your payments before comparing quotes.
Borrower setup and qualification
Can a first-time flipper get a fix and flip loan?
A first-time flipper can often qualify for a fix and flip loan, but the structure is usually more conservative. Many lenders offset limited experience with lower leverage, tighter scope review, stronger liquidity, or contractor oversight.
Do fix and flip loans require tax returns?
A fix and flip loan is usually underwritten more on the deal than on traditional personal income documents. Even so, lenders often review credit, liquidity, entity structure, and overall deal strength, and some may still ask for limited income-related documentation.
Can I title a fix and flip loan in an LLC?
An LLC can often hold title on a fix and flip loan. Holding title in an LLC is still lender-specific. Lenders may require a personal guarantee, the LLC’s operating agreement, or ownership disclosures depending on the file.
What credit score do I need for a fix and flip loan?
Credit score is one of several factors lenders review when evaluating a fix and flip loan application. Stronger scores often improve pricing and leverage, but some lenders can work with lower scores when the asset, liquidity, experience, and exit plan are strong.
Rehab execution and lender fit
How do rehab draws work on a fix and flip loan?
Rehab draws are staged releases of renovation funds after approved work is completed. Many lenders release money after completed work is verified, and the draw timeline, inspection method, and fees can materially affect project cash flow.
How do I choose the right fix and flip lender?
The best fix and flip lender is the one whose draw process, scope tolerance, and extension policy match the project. A lender that works well for a light cosmetic job may be the wrong lender for a heavier rehab with tighter contractor and budget risk.
What happens if the project runs longer than expected?
A project that runs long can trigger extension fees, extra carrying costs, and exit pressure. Some lenders offer extension options, but approval standards and pricing vary, so the original loan should be sized around a realistic timeline rather than a best-case scenario.
Who determines the after-repair value used for the loan?
The lender determines the valuation it will accept for sizing the loan. Your estimate and comparable sales are useful starting points, but the required valuation method varies by program. A lower accepted value can reduce proceeds even when your purchase and rehab budget are unchanged.
Is my project contribution the same as cash needed at closing?
No. Project cost minus financing is only part of the cash picture. Closing charges, reserves and the initial loan advance affect cash needed at closing; draw reimbursements, carrying expenses and overruns affect cash needed during construction.
Exit planning and strategy
Can I refinance a fix and flip property instead of selling it?
A completed project can often be refinanced into a rental loan instead of being sold. That decision should be planned early because the right bridge lender for a sale-focused deal is not always the right bridge lender for a refinance-and-hold exit.
What does a wholesale mortgage broker add on a fix and flip transaction?
A wholesale mortgage broker helps compare lenders based on how they treat the actual deal, not just the headline rate. That can be valuable when the outcome depends on ARV tolerance, contractor review, draw speed, extension policy, entity vesting, or whether the property may later transition into a rental hold.
Request a Project Consultation
Match the financing to the renovation and exit plan. We review the budget, draw process, experience and timing alongside price and leverage.
Budget and loan sizing
- What we review
- Purchase cost, renovation scope and after-repair value assumptions.
- Why it matters
- A leverage headline does not tell you the cash contribution the project needs.
- What to prepare
- The target price, itemized budget and value support.
Draws and project cash
- What we review
- Inspection steps, fees, disbursement timing and how draws are funded.
- Why it matters
- You may need cash available before a lender releases renovation funds.
- What to prepare
- The contractor payment schedule and funds available between draws.
Experience and ownership
- What we review
- Your project history, contractor team and proposed title structure.
- Why it matters
- Lender fit and documentation can differ with experience and ownership.
- What to prepare
- A project summary, relevant experience and entity details if applicable.
Exit and timing
- What we review
- Expected completion, sale or refinance plans and extension conditions.
- Why it matters
- A delay or weaker exit can change the project’s costs.
- What to prepare
- A realistic timeline and backup plan; explore the rental-refinance path if you may keep the property.
Your next conversation
Discuss which project assumptions need verification, which draw and timing requirements fit, and what a sale or refinance exit would require.
Submit your scenario (opens ARIVE in a new tab)Opens our secure inquiry form in ARIVE in a new tab.