The rate on the term sheet is only part of what a flip loan costs. Here is where rates start, what pushes them up or down, and how to add up the full cost before you make an offer.
In short: LendingStreet fix and flip loan rates start at 9.99% for qualified borrowers, and rates change with the market. Your rate depends mostly on your flip experience, how much leverage you take, your credit score, the loan size, the property and the term. Most flip loans are interest-only, and lender and closing costs are added on top of the rate. To compare offers honestly, add up interest and closing costs over the months you expect to hold the property.
Our fix and flip rates start at 9.99% for qualified borrowers. That starting rate usually goes to investors with completed flips, solid credit and a deal that leaves a healthy margin between the loan and the after-repair value.
Terms typically run 12 to 18 months, and payments are usually interest-only. You pay interest on the money you have drawn, then repay the balance when you sell or refinance.
Lenders price flip loans on risk. Each item below shifts the rate a little, and together they decide where you land relative to the starting rate.
Beyond interest, every flip loan comes with lender and closing costs. These can include underwriting or processing fees, a valuation, title and escrow, insurance, legal or document fees and prepaid interest. Amounts vary by program, loan size, experience and state.
Draw inspection fees come later, as each phase of work is completed. Some of these costs are lender charges and some are third-party costs. Your term sheet should list each one, so ask about any line you do not understand.
| Cost | How it is usually charged | When you pay it |
|---|---|---|
| Interest | Monthly, interest-only, on drawn funds | Each month while the loan is open |
| Underwriting or processing | Flat fee; varies by program | At closing |
| Draw inspections | Per inspection; varies | As each draw is requested |
| Title, escrow, legal | Third-party costs; vary by state | At closing |
| Extension fee | Set by the program; only if needed | When the term is extended |
This example is illustrative and not a quote. An investor buys a house for $300,000 with a $60,000 rehab budget and an after-repair value of $460,000. The loan covers 90% of the purchase ($270,000) plus 100% of the rehab ($60,000), for a total of $330,000, about 72% of ARV.
At a sample rate of 10.99%, interest on the full $330,000 is about $3,022 a month, or about $18,134 over a six-month hold. Sample lender and closing costs of $6,500 bring the total cost of capital to about $24,634. Because rehab money is drawn over time, actual interest would likely be a bit lower than this full-balance estimate.
At 9.99% instead, six months of interest drops to about $16,484, a savings of about $1,650. If the project stretches to nine months at 10.99%, interest rises to about $27,200. Time usually costs more than rate.
Every month a flip sits unfinished or unsold adds another month of interest, taxes, insurance and utilities. A 0.5% rate difference can matter less than a two-month delay.
Build a realistic timeline before you compare rates. Use our carrying costs calculator to see how monthly costs add up over different hold periods.
You cannot control the market, but you can control most of what goes into your pricing.
To price a deal accurately, our financing team needs the purchase price, rehab budget, estimated after-repair value, property address, your estimated credit score and a summary of past flips. An entity, such as an LLC, can be the borrower.
We review your scenario and come back with 2–3 options showing rate, closing costs and leverage side by side, so you can choose the trade-off that fits the deal.
Our fix and flip rates start at 9.99% for qualified borrowers. Rates change with the market, and your rate depends on experience, leverage, credit, loan size, the property and the term.
Most are. You pay interest monthly on the funds drawn, and the principal is repaid when you sell or refinance the property.
Expect underwriting or processing fees, a valuation, title and escrow, insurance, legal or document fees and prepaid interest. Amounts vary by program, loan size and state, and your term sheet should itemize each one.
Often, yes. First-time flippers can qualify on some programs, usually at lower leverage and somewhat higher pricing than investors with a documented track record.
That depends on the program. Many charge interest only on funds actually disbursed, while some charge on the full loan amount. Ask how interest is calculated before you compare offers.
No. Compare total cost over your expected hold period, including lender and closing costs, draw terms and extension costs. Leverage and closing speed matter too.
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