Fix & Flip Loan Guide

Understanding short-term acquisition and renovation financing is essential for investors looking to purchase, rehab, and resell properties for a profit. This guide covers the fundamentals of fix and flip capital.

The Funding Structure

Fix and flip loans typically cover a percentage of the purchase price and up to 100% of the renovation costs. Lenders look at the After Repair Value (ARV) to determine the total loan amount.

Property Eligibility

Financing is primarily available for non-owner occupied residential investment properties, including single-family homes, 2-4 unit multi-family properties, and townhomes.

Key Investor Requirements

Lenders evaluate borrower experience, liquidity for down payments and reserves, and the thoroughness of the renovation scope of work (SOW) and budget.