Fix & Flip Financing — Complete Guide — Fix & Flip loans finance both your property acquisition AND your rehab budget. Typical structure: 85-95% LTC on purchase + 100% rehab via draw schedule, 6-18 month interest-only term, 5-10 day close.
LendingStreet has structured $4.36B+ across 8,196 deals nationwide. NMLS #1734316 · 30+ capital sources · 50 states.
How to fund your next flip from purchase through rehab — without W2 income, without appraisals on bridge, and without waiting 45 days for a bank.
A fix and flip loan is a short-term real estate loan used to purchase and renovate investment properties. Unlike a traditional mortgage, a fix and flip loan is designed to fund both the purchase price AND the cost of repairs — so you can acquire, renovate, and sell (or refinance into a rental) without tying up your own capital.
You find a distressed property worth $200K after repairs (the ARV). You buy it for $120K and need $40K in rehab. A fix and flip lender funds up to 90% of the purchase and 100% of the rehab — so you bring as little as $12K out of pocket and the lender funds the rest.
These are the two most important ratios in fix and flip lending:
Most lenders cap their total loan at 65–75% of ARV regardless of LTC. So even if your LTC looks good, the ARV cap is what limits the loan. Always run both calculations before submitting a deal.
When you take a fix and flip loan, the rehab funds aren't released all at once. They're released in draws as work is completed. Here's how a typical draw schedule works:
At LendingStreet we fund 100% of rehab costs through the draw schedule — you don't need to cover rehab out of pocket and get reimbursed later.
Before you take a fix and flip loan, decide your exit strategy. This determines which product makes sense:
Many investors come to us expecting one product and leave with a better structure. Tell us your goal and we'll design the right financing around it.
Fix and flip lenders evaluate deals — not borrowers. Here's what matters:
Speed is your competitive edge. Here's what you need ready before you submit:
Submit all five at once and we can have a term sheet to you within 24 hours and close within 10 business days.
Tell us the purchase price, ARV, and rehab scope. We review every deal within 24 hours. No upfront fees.
Get Fix & Flip Terms →No credit pull. No obligation. Investment property only. Our loan specialists respond within a few hours.
Short-term financing that funds the purchase and renovation of an investment property. Programs commonly reach up to 90% of total project cost with 100% of the rehab budget released in draws as work is completed and inspected.
Leverage is expressed against total project cost — purchase plus rehab — with a ceiling tied to the after-repair value. Experienced borrowers see higher leverage than first-timers on the same property.
After-repair value is what the property is worth once renovation is complete. It sets the ceiling on the loan, because lenders cap total exposure as a percentage of ARV. An ARV unsupported by comparable sales is the most common reason a fix and flip file is declined.
Not with every capital source. Requirements vary more on fix and flip than on any other product — some want two to three completed projects in the last 24 months, others will lend to a first-timer with a licensed general contractor attached and lower leverage.
In draws tied to completed milestones such as foundation, framing, mechanicals and finishes. You fund the work, request a draw, an inspection confirms completion, and the lender reimburses. Draw speed varies by source and matters more than the rate on a rehab-heavy project.
Generally no. These are business-purpose loans underwritten on the deal, your experience and credit, and the exit. Personal income and debt-to-income ratios are not typically part of the file.
Minimums vary by capital source and interact with leverage and experience. Lower credit is often workable at reduced leverage rather than being an outright decline.
Yes, and in low-basis markets like Cleveland, Dayton, Toledo and parts of Detroit it routinely is. Some capital sources will not fund that structure at all, so it is worth confirming before going under contract.
Extensions are usually available and usually carry a fee or rate adjustment. The larger risk is a lender unwilling to extend, which forces a refinance of a partially complete property. Building schedule margin at the outset is far cheaper than extending at the end.
Yes — that is the BRRRR exit. Once the property is rentable and the rent supports the ratio, a DSCR loan can retire the fix and flip loan. Seasoning requirements vary by capital source and should be confirmed before you buy.
Yes in substance. Fix and flip loans, hard money loans for flipping houses, and private money loans for rehab projects all describe asset-based short-term financing on an investment property. The loan is underwritten on the deal — purchase price, rehab budget and after-repair value — rather than on the borrower’s income. When comparing hard money lenders, the terms that actually differ are leverage against total cost, rehab draw speed, experience requirements and which property types the capital source will write.
LendingStreet places fix & flip loans up to 90% loan-to-cost with 100% rehab financing across 30+ capital sources — built for speed and leverage.
No credit pull. No obligation. Investment properties only.