Fix and flip loans provide short-term financing for investors acquiring and renovating residential investment properties. Financing may be structured around the purchase, renovation plan, current property condition and projected value after improvements.
These programs are intended for business-purpose transactions and non-owner-occupied real estate.
A conventional mortgage may not be suitable for a property that requires substantial repairs or must close on a short timeline. Fix and flip financing can provide an alternative for investors purchasing properties that need cosmetic improvements, major rehabilitation or repositioning before resale.
The review typically focuses on whether the purchase price, renovation budget and projected value support the requested financing.
Depending on the approved structure, proceeds may be used for:
Construction or renovation funds may be released through draws based on completed work and supporting documentation.
Financing may be considered for:
Eligibility depends on the specific property, market, condition and proposed business plan.
To review a fix and flip request, provide as much of the following information as possible:
A complete submission allows the transaction to be evaluated more accurately.
A clear exit strategy is an important part of a short-term real estate loan. Common strategies include:
The proposed exit should be realistic for the project and expected loan term.
A fix and flip loan is short-term financing used to purchase, renovate or refinance a non-owner-occupied property that an investor plans to sell or hold after improvements.
Renovation funds may be included in some financing structures. The approved amount and draw process depend on the scope of work, budget, property and overall transaction.
Not necessarily. The property and transaction are important parts of the review, but credit, liquidity, experience and financial background may still affect eligibility and terms.
First-time investors may be considered, although the lender may require stronger liquidity, an experienced contractor or other supporting factors.
Qualified transactions with complete documentation may close faster than conventional bank loans. The actual timeline depends on appraisal or valuation, title, insurance, documentation and due diligence.
These programs are generally intended for business-purpose financing secured by non-owner-occupied investment property.