Permits stall, contractors disappear and houses sit longer than planned. If your flip is going to outlast the loan term, you have options, but they work best when you act early.
In short: If a fix and flip project runs past the loan's maturity date, you can often request an extension, refinance into a new loan, or sell. Extensions usually come with a fee and conditions, such as being current on payments and showing progress on the rehab, and terms vary by program. Refinancing into a bridge loan or a DSCR rental loan are common alternatives. The best protection is a realistic timeline from the start, and talking to your lender well before maturity.
Fix and flip loans are short-term, typically 12 to 18 months. At maturity, the full balance is due. If the property hasn't sold or been refinanced, the loan is past due, which can bring default interest, late fees and in time, collection steps.
That outcome is avoidable for most investors. Lenders generally prefer to work with a borrower who raises the issue early and has a clear plan to finish.
Many programs offer one or more extensions, often in three- or six-month increments. Whether you qualify, and what it costs, varies by program and by how the loan has performed.
Extension terms are usually written into your loan documents. Read them at closing, not at month eleven.
If the rehab is mostly finished but the property needs more time to sell, a bridge loan can replace the fix and flip loan. Bridge rates start at 7.99% for qualified borrowers, and the new term resets your clock.
A refinance means new underwriting, a new valuation and new closing costs. It can make sense when you need more time than an extension allows, or when the extension terms are expensive. See our guide to bridge loans.
If the house is finished but the sale market is slow, renting it out is often the cleanest exit. A DSCR loan qualifies on the property's rent, not your income, with rates from 6.125% for well-qualified borrowers and 30-year fixed options.
This turns a stalled flip into a long-term hold. You stop paying short-term rates and can sell later on your own schedule. Some DSCR programs require a lease in place or a rent estimate, so plan ahead.
This example is illustrative and not a quote. An investor has a $350,000 fix and flip loan at 11% on a 12-month term and needs three more months to sell. The extension carries a sample $3,500 fee. A bridge refinance would carry a sample 9.5% rate and sample lender and closing costs of $8,750.
For a three-month need, the extension costs about $3,937.50 less. If the investor needed six or more months, or planned to hold the property, the comparison could change, and a DSCR refinance may be the better fit.
| Cost item | 3-month extension | Bridge refinance |
|---|---|---|
| Extension fee (sample) | $3,500 | $0 |
| Closing costs (sample) | $0 | $8,750 |
| Interest for 3 months | $9,625 (11%) | $8,312.50 (9.5%) |
| Total | $13,125 | $17,062.50 |
Most extensions come from optimistic schedules. Build in time for things you can't control.
If you see a delay coming, call your lender as soon as you know. Two months of notice gives you far more options than two weeks.
Treat an extension request like a short loan application. Explain what caused the delay, what is left to do and when you will sell or refinance.
Include current photos, an updated budget showing remaining work, any listing agreement or offers, and proof that funds to finish are available.
Often yes. Many programs offer extensions if payments are current and the project is progressing. Fees, length and conditions vary by program.
It is usually an extension fee set by the program, plus continued interest. Check your loan documents for the exact amount and conditions.
You can refinance into a bridge loan for more time, or into a DSCR rental loan if you plan to rent the property. Selling, even at a lower price, is also an option.
As early as possible, ideally 60 days or more before maturity. Waiting until the loan is past due limits your options.
A single extension on a well-managed project is common. Missed payments or a default carry far more weight with lenders than a planned extension.
Yes, once the property is rent-ready. A DSCR loan qualifies on the rent, and some programs require a lease or rent estimate.
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