Fix & Flip Loans
Speed and Flexibility for Property Flippers
Fix-and-flip investing is different from traditional real estate. You’re not buying a finished home to live in or rent out. You’re buying a distressed property, renovating it, and selling it for profit within 6-12 months. Traditional lenders don’t understand this model. They want W-2 income, tax returns, and long-term mortgages. They move slowly and ask too many questions.
That’s where fix-and-flip loans come in.
Fix and flip loans are designed for real estate investors who need speed, flexibility, and financing based on the property’s after-repair value (ARV), not its current condition. Approval in 24-48 hours. Funding in days. Terms that flex with your project timeline.
At Dream House Mortgage, we specialize in fix and flip financing. We work with experienced flippers, first-time investors, and everyone in between. Your deal is our deal. Your timeline is our timeline. Your profit margins are our profit margins. We understand your timeline. We understand the profit margins that make your business work.
Short-Term Financing for Property Renovation & Resale
A fix and flip loan is a short-term mortgage designed for real estate investors who purchase distressed properties, renovate them, and sell them within 6-12 months. Unlike traditional mortgages (which are 15-30 year loans), fix and flip loans are typically 6-12 months, with the expectation that you’ll sell the property and repay the loan from the sale proceeds.
Here’s how it works: You identify a distressed property at a below-market value. You apply for a fix-and-flip loan based on the property’s after-repair value (its value after renovation). The lender approves the loan based on ARV, not the current condition. You close quickly (often in 7-14 days). You fund the purchase. You renovate. You sell. You repay the loan from the proceeds of the sale.
The beauty of this structure is that the lender evaluates your project’s profit potential, not your personal income. There’s no personal income verification. No tax returns. No W-2s. Just you, the property’s numbers, your experience, and the exit strategy (selling for profit).
The lender evaluates the property’s current condition, estimated renovation costs, the property’s post-repair market value, and your experience as a flipper. If the deal makes sense, if there’s sufficient profit margin to repay the loan and cover your time and expertise, you get approved.
The result? Financing that moves at the speed of real estate investing, with terms and flexibility that actually work for your business model.
The Real Advantages of Fix & Flip Financing
Everything You Need to Know About Fix & Flip Financing
Loan Amount Range
Qualification Basis: After-Repair Value (ARV)
- ARV is the property's estimated value after complete renovation
- Loan amounts are 80%; however, with experience, we can go up to 90% LTV
- Example: Property worth $400K after renovation at 80% LTV = $280,000 loan
- ARV is established through comparable market analysis and appraiser evaluation
Credit Score Requirements
- Best rates and terms: 700+
- Good rates: 680-699
- Minimum: 680
Your credit score matters, but your deal's profit potential matters more. If you have strong flipping experience and a good property, a lower credit score doesn't automatically disqualify you.
Down Payment / Equity Required
- Minimum: 10-30% of purchase price
- Standard: 25%
- Optimal: 30%+ (better rates and more flexibility)
You will need the down payment, closing costs, and 6 months of reserves. It demonstrates your financial stability and commitment to the project.
Acquisition Cost + Renovation Budget
The loan is structured to cover: Purchase price + estimated renovation costs
Example:
- Property purchase price: $200,000
- Estimated renovation: $50,000
- Total project cost: $250,000
- Loan at 70% LTV: ~$175,000
- Your equity/down payment: $75,000
Interest Rate & Payments
- Interest rates:9-12% annually (varies by lender, experience, deal strength)
- Payment type: Interest-only during renovation/hold period
- Monthly interest payment example: $175,000 loan at 10% = ~$1,458/month
- Prepayment: No penalty (you can sell and repay early)
Loan Terms
- Typical: 6-12 months
- Extension options: Some lenders offer 18-24 month terms or extension periods
- Exit strategy: Sale and loan repayment (most common)
- Refinance option: Some flippers refinance to DSCR or long-term rental loans (change business model)
Appraisal & Property Evaluation
- As-is appraisal: Property's current condition/value
- After-repair appraisal: Estimated value after renovation
- Lender uses ARV to determine loan amount
- Property must have identifiable repair items and a realistic market value after repairs
Renovation Budget & Scope
- Detailed contractor estimate required
- Contingency typically 10%
- Lender reviews scope to verify a realistic timeline and costs
- Budget management is key; overages come from your pocket
Proof of Experience
- Flipping experience history required
- Previous flip projects (2-3 past flips ideal)
- Exit strategies from past projects
- Current property portfolio
- First-time flippers: Possible with strong partners/experience, but terms may be stricter
Property Requirements
- Single-family homes (primary focus)
- Multi-unit properties (2-4 units)
- Condos (FHA-approved buildings)
- Commercial properties (on a case-by-case basis)
- Lease-option or wholesale deals (sometimes)
Properties NOT Financed
- Properties requiring major structural work
- Properties in flood zones or environmental hazard areas
- Properties with title defects
- Properties in declining markets
- Properties without clear after-repair value
Strategic Process Designed for Investor Success
We review the property, your experience, and the deal’s profit potential. We analyze the numbers: purchase price, repair estimate, after-repair value, profit margin. If the deal makes sense, we move forward.
We order an as-is appraisal and an after-repair appraisal. We evaluate comparable sales and the renovation scope.
We structure the loan: purchase price + renovation budget, interest rate, and loan term. We provide pre-approval within 24-48 hours. You’ll know your exact financing before making an offer.
Underwriting is streamlined (no income verification required). We close in 3-7 days. You’re ready to purchase and start renovating immediately.
Funds are wired for purchase. You close on the property. The lender records the deed and lien. Renovation begins.
We stay in touch as the project progresses. We’re available for questions. We support your exit strategy (sale, refinance, or hold).
When you’re ready to sell, we’re here to support the sale. Once you’ve got a contract and sale proceeds, we handle the loan payoff. Clean exit.
After your first flip, refinancing is faster. You have a track record with us. The next deal closes even quicker.
Why Experienced and New Flippers Choose Fix & Flip Financing
Benefit 1: Speed (24-48 Hour Approval)
Benefit 2: Quick Funding (3-7 Days)
Benefit 3: No Personal Income Verification
Benefit 4: Financing Based on ARV
Benefit 5: Flexible Loan Terms
How Fix & Flip Loans Stack Up
Feature | Fix & Flip | DSCR | Hard Money | Bank Statement |
Approval Speed | 24-48 hours | 7-14 days | 3-7 days | 10-20 days |
Qualification Basis | Deal/ARV | Property income | Property condition | Bank statements |
Personal Income Required | No | No | No | Partial |
Interest Rate | 8-12% | 6-8% | 8-14% | 7-10% |
Loan Term | 6-12 months | 30 years | 12-18 months | 5-7 years |
Down Payment | 20-30% | 20-30% | 25-40% | 20-25% |
Best For | Fix & flip projects | Long-term rentals | Quick acquisitions | Self-employed with assets |
