Fix & Flip loans are designed for real estate investors who buy, renovate, and resell properties for profit.
Because these are asset-based loans, the approval focuses on the property’s value and project potential — not traditional income or tax documentation.
✅ Basic Qualification Requirements
Requirement | Typical Standard | Notes |
Credit Score | 660+ | Higher scores can qualify for better rates or higher leverage |
Down Payment | 10% – 20% of purchase price | Varies by project risk and experience |
Experience Level | 0–3+ prior flips | More experience = better terms |
Loan-to-Cost (LTC) | Up to 90% | Based on purchase + rehab budget |
After-Repair Value (ARV) | Up to 75% | Maximum percentage of finished value |
Loan Term | 6–18 months | Short-term, interest-only structure |
Exit Strategy | Required | Sale or refinance into long-term financing |
This is a tip.
Even first-time investors can qualify — but having a strong contractor, detailed budget, and clear exit plan improves approval chances.
🧱 Property Requirements
Fix & Flip loans typically cover properties that need cosmetic or structural renovation but are not fully uninhabitable.
Eligible properties include:
Single-family homes
Condos and townhomes
2–4 unit multifamily buildings
Some mixed-use properties (case-by-case)
Properties should have clear title, be located in a marketable area, and show potential for profitable resale based on comparable sales (comps).
💼 Borrower Documentation
Minimal documentation is required compared to traditional loans, but you’ll typically need:
Purchase contract
Rehab scope of work and cost breakdown
Contractor bid or estimate
Bank statements for down payment and reserves
Government-issued ID or entity documents (LLC, etc.)
🧮 Example Project Snapshot
Description | Example |
Purchase Price | $200,000 |
Rehab Budget | $60,000 |
ARV | $320,000 |
Loan Amount | $234,000 (90% LTC) |
Investor Cash In | $26,000 |
Term | 12 months (interest-only) |
Once renovations are complete, investors can either sell for profit or refinance into a DSCR loan to hold as a rental property.
🧠 Pro Tips for Easier Approval
Submit a detailed budget and timeline with your application
Work with licensed and insured contractors
Maintain a credit score above 680 for best terms
Be prepared with proof of funds for your down payment and reserves
Plan your exit strategy before applying — it’s a key factor for lender confidence
With strong planning and documentation, Fix & Flip financing can be one of the fastest ways to grow your real estate investment portfolio.