Fix & Flip loans are short-term financing options built specifically for real estate investors who purchase, renovate, and resell properties for profit.
Unlike long-term DSCR loans, Fix & Flip loans are designed for speed, flexibility, and quick exits — usually lasting between 6 to 18 months.
⏳ Typical Fix & Flip Loan Terms
Term Type | Description | Typical Range |
Loan Term | Short-term bridge loan designed to cover purchase + rehab | 6 – 18 months |
Interest Type | Interest-only payments during the loan term | Monthly payments on drawn funds |
Amortization | None (paid in full at sale or refinance) | Lump sum at project completion |
Lien Position | First lien on property | Standard for investor loans |
Draw Structure | Funds released as renovation milestones are completed | 3–5 draws typical |
This is an information.
Fix & Flip loans are not meant to be long-term mortgages — they’re bridge loans that provide liquidity until the property is sold or refinanced.
💰 Rate & Fee Ranges
Rates and fees depend on project experience, risk profile, and leverage:
Factor | Typical Range |
Interest Rate | 9% – 13% (interest-only) |
Points (Origination Fee) | 1.5% – 3.5% |
Loan-to-Cost (LTC) | Up to 90% |
After-Repair Value (ARV) | Up to 75% of ARV |
Term Length | 6, 9, 12, or 18 months |
🧮 Example Structure
Description | Amount |
Purchase Price | $200,000 |
Rehab Budget | $50,000 |
Loan Amount | $225,000 (90% LTC) |
ARV | $325,000 |
Estimated Profit | $75,000 (before closing costs) |
The investor pays interest-only during renovation, then repays the loan in full once the property sells or is refinanced.
🧰 Extensions & Flexibility
Some lenders offer extension options for 3–6 months if projects run longer than expected.
No prepayment penalty on most Fix & Flip loans — you can sell or refinance anytime.
Interest is only charged on drawn funds, not the full approved amount.
🧠 Tips for Selecting the Right Term
Choose a loan term that aligns with your renovation timeline + resale plan.
Add 1–2 months of cushion for potential delays.
Experienced investors can often negotiate lower points or longer terms.
If you plan to refinance into a DSCR loan, ensure rehab completion aligns with seasoning requirements.
Short-term, high-speed Fix & Flip loans are one of the most powerful ways to fund property renovations — giving investors quick access to capital without tying up long-term financing.