Fix & Flip

Purchase Leverage

Typical market range ~80–90% of purchase price

Rehab Funding

Up to 100% of approved rehab on qualifying programs

Overall ARV Cap

Roughly 65–75% of ARV as a common overall cap

Term

Approximately 6–18 month terms

Interest Structure

Generally interest only during the project

Credit

Varies widely by program and lender

Fix & Flip is built for investors acquiring a distressed property to renovate and resell for a profit. That includes experienced flippers running multiple projects at once, but it also includes first-time flippers who have a credible project, a realistic contractor plan, and a clear exit strategy. If you are buying a property that needs work before it can be sold or refinanced, and you want the acquisition and renovation capital in one short-term loan rather than spread across a conventional mortgage and out-of-pocket cash, Fix & Flip is the structure designed for that exact scenario.

A Fix & Flip loan combines the purchase price and the renovation budget into a single short-term, interest-only loan. Instead of the borrower funding the rehab out of pocket and being reimbursed later, the eligible rehab budget is reserved within the loan up front. Rehab capital is held back and released through milestone-based draws as completed work is verified, so the renovation is funded from within the financing rather than from the investor's working capital. The loan is sized using total project cost (purchase plus rehab) and after-repair value, with the preliminary maximum set by the lower of the loan-to-cost ceiling or the loan-to-ARV ceiling, subject to underwriting.

Use Fix & Flip when you need acquisition capital and renovation capital together in one structure, when you want to minimize the cash you put into the project, and when you have a clear resale or refinance exit within the loan term. It fits the moment between contract and renovation — the window where you have a property under contract, a scope of work, and a contractor, but you need the capital to close and to fund the build before the property can be sold or stabilized.

Fix & Flip is built around the deal economics and the after-repair value rather than owner-occupied mortgage underwriting, which makes it a better fit for a flip than a traditional bank loan in several ways. Financing is based heavily on the project — the purchase price, rehab budget, ARV, and borrower experience — rather than on personal W-2 income and debt-to-income ratios. Rehab funding can be included inside the loan instead of coming out of pocket. Closing is faster than a conventional mortgage, often in days rather than weeks. And the short-term, interest-only structure is designed around a renovation and resale timeline, so you are not paying for a 30-year amortization you do not need. For a project you intend to improve and exit, that alignment usually makes more sense than long-term bank financing.

• Purchase + rehab on a distressed property for resale
• Light or heavy renovation projects
• BRRRR acquisition / rehab phase before a refinance exit
• Auction or bank-owned acquisitions
• Properties where the rehab budget is large relative to the purchase

1. 1

   Identify the property

   The investor locates a distressed property, confirms a renovation scope, validates the after-repair value, and defines a resale or refinance exit strategy before applying.

2. 2

   Submit the deal

   Purchase price, rehab budget with scope of work, ARV, borrower experience, liquidity, and credit profile are submitted for review.

3. 3

   Review and size the loan

   The lender reviews the project economics, borrower profile, and contractor plan, then sizes the loan using the LTC and LTARV ceilings. Underwriting may reduce the preliminary maximum.

4. 4

   Close and fund the purchase

   The loan closes and purchase funds are provided at closing. Rehab capital is held back, not disbursed as cash.

5. 5

   Rehab draws

   Renovation proceeds are released through milestone-based draws as completed work is inspected and verified — 24-hour digital inspections on the core program.

6. 6

   Complete the renovation

   The investor completes the renovation with capital funded from inside the loan, drawing against the reserved rehab budget by milestone.

7. 7

   Exit

   The investor exits by selling the renovated property or refinancing into long-term financing, repaying the loan from sale or refinance proceeds.

A hard-money lender evaluating a Fix & Flip generally looks at the deal first and the borrower second. On the deal side, they review the purchase price, the rehab budget and scope of work, the after-repair value, and whether the numbers support a profitable exit. On the borrower side, they review experience — prior projects completed — credit profile, liquidity and reserves, and the contractor plan. The strength of the ARV and the credibility of the rehab budget are often the most heavily weighted factors, because they determine whether the project can be completed and exited at a value that repays the loan.

• Resell the renovated property on the open market and repay the loan from sale proceeds
• Refinance into long-term DSCR rental financing after stabilization (a BRRRR-style exit)
• Refinance into a bridge loan if more time is needed before a final sale

• Requires a credible rehab plan, scope of work, and contractor
• Higher cost of capital than long-term financing — it is short-term bridge capital, not a hold loan
• Resale market and timing risk affect the exit
• Actual leverage and terms depend on the borrower, property, transaction, and capital source
• Rehab funds are drawn by milestone, not handed over at closing