How fix & flip loans work
These loans are underwritten primarily on the property's after-repair value (ARV) and the borrower's experience, rather than personal income. That lets investors move quickly on distressed properties that traditional banks won't finance. Funds typically cover the purchase and are released in draws as renovation milestones are completed.
Typical terms (verify before committing)
Terms vary by lender and deal. These are general reference points, not a quote or guarantee.
- •Up to 90% of purchase price in qualifying deals
- •Up to 100% of rehab costs in qualifying deals
- •Short terms (often 6–18 months)
- •Interest-only payments during the project
- •Draws released as work is completed and inspected
Who this is for
Active rehab investors who need speed and flexibility to acquire and renovate properties — especially when a traditional mortgage would be too slow or restrictive for a distressed purchase.
Typical next steps
Have your deal details ready: purchase price, estimated rehab, ARV, and your timeline. Our capital desk can route you to the right product and outline expected terms for underwriting.
Frequently Asked Questions
Do I need a high credit score?
Credit matters, but fix & flip lenders weight the deal and your experience heavily. Strong ARV and a clear rehab plan can offset a modest credit profile.
How fast can funding close?
Asset-based loans commonly close faster than traditional mortgages — often within days to a couple of weeks once the file is complete. Timelines depend on title and appraisal.
Are the rehab funds released all at once?
Usually not. Rehab funds are typically released in draws as completed work is inspected, which protects both the lender and your project.
Real Estate Funding Path
Visit our specialist site to continue this process.