The practical path to funding a flip — analyze the deal, line up financing, draw the rehab as you build, and exit. Up to 90% purchase + 100% rehab on one loan.
The hardest part of a flip usually isn’t the renovation — it’s funding the deal fast enough to win it and structuring the loan so your cash isn’t trapped at closing. A fix and flip loan solves both: it funds the purchase and the rehab on one short-term loan, underwritten on what the property will be worth after repairs rather than your tax returns. This guide walks through how to finance a fix and flip from analysis to exit.
For the full product breakdown, see our fix and flip financing hub; below is the practical path.
Step 1: Analyze the Deal With Real Comps
A flip lives or dies on the after-repair value (ARV) and the rehab budget. Pull recent comparable sales for the finished product, get a realistic contractor estimate, and apply the 70% rule: your purchase plus rehab should stay within about 70% of the ARV. That spread is your margin and your lender’s cushion. Pressure-test the numbers with our deal estimator before you make an offer.
Step 2: Line Up Financing Before You Offer
In a competitive market, a pre-arranged lender is what lets you offer with confidence and close fast. A fix and flip loan is a form of hard money — secured by the property, underwritten on the asset. For qualified borrowers we fund up to 90% of the purchase and 100% of the rehab as long as the total stays within roughly 70% of ARV, so your cash at closing can be limited to points, closing costs, and reserves.
Step 3: Submit the Project Package
Because the property carries the loan, the file is light. You’ll provide the purchase price, the ARV with comps, the renovation scope and budget, and your exit plan. There’s no minimum credit score — we pull a hard credit report, but a low score adjusts your terms, not your eligibility. You can close in an LLC.
Step 4: Close and Draw the Rehab as You Build
Fix and flip loans are typically 12-month, interest-only terms, which keeps your carrying cost low while you renovate. The purchase funds at closing; the rehab is released through draws as the work hits milestones and passes inspection. That structure keeps the project funded in step with progress and your interest cost down early on.
Step 5: Sell or Refinance — Your Exit
When the renovation is done, you execute your exit. If you’re flipping, you sell at the ARV, repay the loan plus interest and costs, and keep the profit. If you decide to keep it as a rental, you refinance into a long-term DSCR loan and can pull your capital back out through a cash-out refinance — the BRRRR strategy.
Fix and Flip Financing at a Glance
Fix and Flip Financing at a Glance
Frequently Asked Questions
On a qualifying deal we fund up to 90% of the purchase and 100% of the rehab, so your cash at closing can be limited to points, closing costs, and reserves rather than a large down payment. The wider the spread between your total cost and the ARV, the more leverage we can offer.
It’s a quick way to size a flip loan: your total purchase-plus-rehab should stay within about 70% of the after-repair value. That 30% cushion protects your profit margin and the lender’s position.
Yes. There’s no minimum credit score — the deal carries the underwriting. We pull a hard credit report, but a lower score is offset with a higher rate, lower leverage, or more reserves, not a denial.
Through draws. The purchase funds at closing, and the renovation budget releases in stages as the work is completed and inspected, so money never gets ahead of the project.
Often within about a week to two weeks on a clean file, since we underwrite the property rather than your income. That speed is frequently what wins a competitive deal.