Fix and Flip Loans: Requirements, Rates, and How to Get Approved

Fix and flip loans are short-term financing options designed for real estate investors who buy, renovate, and resell properties for profit. Understanding how these loans work is critical if you want to move quickly and maximize returns.

If you're evaluating rental-based investments, understanding how DSCR loans work can help you compare long-term financing options.

What is a fix and flip loan?

A fix and flip loan is a short-term loan used to purchase and renovate a property before selling it. These loans are typically offered by private lenders and are based more on the deal than the borrower’s income.

Key requirements lenders look for

1. Property value (ARV)

Lenders focus heavily on the after-repair value (ARV) of the property.

2. Loan-to-value (LTV)

Most lenders offer 70–85% of the purchase price or ARV.

3. Rehab budget

You need a clear renovation plan and cost breakdown.

4. Experience

Some lenders require prior fix and flip experience, while others work with beginners.

5. Credit score

Minimums vary, but most lenders look for 620+

Typical loan terms

• Loan term: 6–18 months

• Interest rates: 8%–14%

• Points: 1–3 points

• Interest-only payments
  

How to get approved faster

• Submit a detailed scope of work

• Provide accurate ARV comps

• Work with lenders that match your deal
  

LYNDIFY helps you identify which lenders fit your deal before you send it.

For ground-up projects, new construction loans provide a different financing approach than short-term flip loans.