Fix and Flip Loans
Whether you're renovating your first investment property or managing multiple projects each year, a Fix and Flip Loan from MyLoanDesk provides the financing you need to purchase, rehab, and resell quickly — without tying up your own cash for months at a time. Loans are underwritten around the property and the deal, not a lengthy personal income file, so approvals and closings move at investor speed.
Estimate only, based on common industry guidelines (up to 90% of purchase price, 100% of rehab costs, capped at roughly 70–75% of ARV). Actual loan amount, rate, and terms depend on underwriting, your experience, and the specific property.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term, asset-based loan designed for real estate investors who buy distressed or undervalued properties, renovate them, and resell them for a profit — often within six to eighteen months. Unlike a conventional mortgage, which is underwritten around your personal income, tax returns, and long-term ability to repay over 15 or 30 years, a fix and flip loan is evaluated primarily around the deal itself: the purchase price, the rehab budget, and the property's projected after-repair value (ARV).
This structure is what makes fix and flip financing — sometimes called hard money financing or rehab loans — a fundamentally different tool than a traditional mortgage. It's built for speed and flexibility, not for holding a property for decades.
How Fix and Flip Financing Works
Program Highlights
- Short-term financing, typically 6–18 months
- Rehab budget financed alongside the purchase price
- Interest-only payments during the loan term
- Fast closings, often within 7–14 days
- No prepayment penalty when you sell or refinance early
- Financing available for single-family, multifamily, and small mixed-use properties
- Programs available for both new and experienced investors
Speed is often the deciding factor in a competitive investment market. Fast approvals and streamlined underwriting mean you can move on a property before another investor does, without waiting on a 30–45 day conventional close.
Because the rehab budget is financed as part of the loan, you're not forced to pull from personal reserves mid-project — draws are released as work is completed, keeping your cash available for your next deal.
Interest-only payments during the loan term also keep monthly holding costs predictable and low, which protects your margin if a renovation or sale takes a little longer than planned.
Who Fix and Flip Loans Are For
- Investors purchasing a distressed or outdated property below market value
- Experienced flippers managing multiple simultaneous projects
- First-time investors with a solid rehab plan and realistic ARV estimate
- Buyers who need to close quickly to win a competitive off-market or auction deal
- Investors who don't want a renovation project tying up a conventional mortgage
Fix and Flip Loans vs. Other Financing Options
| Fix and Flip Loan | Conventional Mortgage | HELOC / Cash-Out Refi | |
|---|---|---|---|
| Underwriting focus | The property and the deal | Personal income and credit | Existing home equity |
| Typical closing time | 7–14 days | 30–45 days | 2–4 weeks |
| Rehab budget financed | Often up to 100% | Not typically included | Depends on available equity |
| Payment structure | Interest-only | Fully amortizing | Varies by product |
| Best for | Short-term rehab and resell | Long-term ownership | Investors with substantial existing equity |
Eligibility Requirements
- Credit score of approximately 620+ (deal strength can offset a lower score)
- A clear rehab budget and scope of work
- A realistic, supportable after-repair value (ARV) estimate
- Sufficient reserves to cover holding costs during the project
- No minimum flipping experience required, though experience can improve your leverage and terms
Frequently Asked Questions
What credit score do I need for a fix and flip loan?
Most fix and flip lenders look for a credit score of 620 or higher, though some programs accept lower scores if the deal itself — the purchase price, rehab budget, and after-repair value — is strong. Because these loans are asset-based, your credit score typically matters less than it would for a conventional mortgage.
How much of the rehab budget can be financed?
Many fix and flip programs finance 100% of the rehab budget in addition to a portion of the purchase price, released in draws as work is completed and inspected. The exact amount depends on the deal's loan-to-cost and loan-to-ARV ratios.
What is the 70% rule in house flipping?
The 70% rule is a rule of thumb many investors use to evaluate a flip: your purchase price plus rehab costs should generally not exceed 70% of the property's after-repair value (ARV). Deals within that range tend to leave enough margin for financing costs, holding costs, selling costs, and profit.
How fast can a fix and flip loan close?
Because fix and flip loans are underwritten primarily around the property and the deal rather than extensive personal income documentation, many close in as little as 7 to 14 days — significantly faster than a conventional 30 to 45 day mortgage timeline.
Do I need real estate investing experience to qualify?
No — many fix and flip lenders work with first-time flippers, though your experience level can affect your available leverage, rate, and terms. Investors with a track record of completed flips often qualify for higher loan-to-cost ratios.
Are fix and flip loan payments interest-only?
Most fix and flip loans are structured as interest-only for the duration of the loan term, which keeps monthly holding costs lower while you complete the renovation and prepare the property for resale.
Is there a penalty for paying off a fix and flip loan early?
Most fix and flip loans carry no prepayment penalty, since the entire model is built around a short holding period — lenders expect and plan for an early payoff once the property sells.
Can I use a fix and flip loan for a rental property instead?
Fix and flip loans are designed for short-term rehab-and-resell projects. If your plan is to renovate and hold the property as a rental, a DSCR loan or a fix-to-rent refinance is typically a better long-term fit once the renovation is complete.