Old houses have character buyers pay for. They also have plaster, old wiring and, sometimes, a preservation board that has to sign off before you change a window.
In short: Yes, LendingStreet finances flips of older and historic homes on the same core terms as other flips: up to 90% of the purchase price and up to 100% of the rehab, paid in draws, with terms typically 12 to 18 months. What changes is the plan. Expect a closer look at the scope, a bigger contingency, specialty contractors for some work and a longer schedule, especially if the house is in a local historic district. Build those into the budget and the term from the start.
Many cities have local historic districts with a preservation commission or review board. Exterior changes, such as windows, doors, siding, roofing, porches and additions, may need approval before work starts, often called a certificate of appropriateness. Rules differ widely by city.
Being listed on the National Register of Historic Places does not by itself usually restrict what a private owner can do. Local district rules are what typically apply. Check with the city's planning or preservation office before you buy, and ask how long reviews take.
Homes built before 1978 may contain lead-based paint. Federal rules generally require renovation work that disturbs painted surfaces in that housing to be done by certified firms using lead-safe practices, and sellers must provide lead disclosures when selling pre-1978 homes. State and local rules can add more.
Older homes may also have asbestos in materials such as pipe insulation, flooring, plaster or siding. Testing before demolition is common practice, and removal may require licensed abatement contractors. This is general information, not legal advice; confirm requirements with local officials and your contractors.
A general contractor who does tract-home flips may not be the right fit. Some work calls for trades that are harder to book and price higher.
Get bids from these trades before you finalize your budget. Lenders review the scope against the house, and a budget that skips them is a red flag.
This example is illustrative and not a quote. An investor buys a house built in the early 1900s for $320,000. The $140,000 rehab includes rewiring, new plumbing, lead-safe paint work and window restoration. The after-repair value is $640,000.
The loan is 90% of the purchase ($288,000) plus 100% of the rehab ($140,000), or $428,000, about 67% of ARV. The investor brings $32,000 toward the purchase plus sample closing costs.
At a sample rate of 10.99% on the full balance, interest is about $3,920 a month. A six-month project costs about $23,519 in interest. If permits, district review and specialty trades push it to nine months, interest rises to about $35,278, or $11,759 more. A 20% contingency on the rehab would be $28,000.
| 6-month plan | 9-month reality | |
|---|---|---|
| Loan amount | $428,000 | $428,000 |
| Monthly interest at sample 10.99% | $3,920 | $3,920 |
| Total interest | $23,519 | $35,278 |
| Difference | $11,759 |
Historic review, abatement and specialty trades add time that is hard to compress. Pick a loan term with room past your best-case schedule, and ask how extensions work before you close.
Draws are paid after work is completed and inspected, so lining up trades in the right order keeps money moving. Abatement usually comes first, then rough-in work, then finishes.
Many buyers want original details like trim, built-ins, hardwood and a front porch. They also want modern systems. The flips that sell well usually keep the character and replace the wiring, plumbing and mechanicals.
Expect buyers' inspectors to look hard at the electrical, plumbing, roof and foundation. Keep permits, abatement reports and contractor invoices in a folder for the listing. It answers questions before they slow the sale.
Send the purchase contract, a line-item budget with specialty trade bids, any inspection, lead or asbestos reports, notes on historic district status and required approvals, comps of renovated homes of similar age and style and a summary of past projects.
Our financing team reviews the scope and timeline with you and comes back with 2–3 options. Loans run from $150K to $5M+.
Yes. The core terms are the same as other flips. Lenders look more closely at the scope, budget, contractors and timeline because older homes carry more unknowns.
It does not change the loan terms, but it can change your schedule and budget. Exterior changes may need approval first, which can add weeks. Confirm the rules with your city.
For homes built before 1978, federal rules generally require certified firms for renovation work that disturbs painted surfaces. State and local rules may add requirements.
Abatement can be part of the rehab budget and funded through draws on many programs, as long as it is in the scope and the total fits the after-repair value.
Many investors plan on 15% to 20% of the rehab for older homes because walls, wiring and plumbing often hide problems. The right amount depends on the house and your inspections.
Ask about extension options before you close. Extensions are set by the program and add cost, so it is better to choose a term with room from the start.
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