Fix & Flip Mortgage Financing

We typically close in 7-10 business days once we have the appraisal and title. For repeat borrowers with a proven track record, we can often move even faster, sometimes in as little as 5 days.

ARV stands for After-Repair Value. It is the estimated market value of the property after all renovations are completed. Lenders use the ARV to determine the maximum loan amount, often funding up to 70-75% of the ARV, which covers both the purchase and most (or all) of the renovation costs.

The 70% rule is a guideline that investors use to determine their maximum offer price. It suggests that you should pay no more than 70% of the ARV, minus the estimated repair costs. While it's a good rule of thumb, we help you analyze deals that might fall outside this range but still offer strong profit potential.

Yes. Since flip loans are primarily asset-based (focused on the property's value), credit requirements are often more flexible than conventional loans. However, having a score above 620-660 will typically get you better interest rates and higher leverage.

Renovation funds are held in escrow by the lender. As your contractor completes specific milestones (e.g., roof done, plumbing roughed in), you request a draw. A third-party inspector verifies the work, and the funds are typically released to you within 24-48 hours.

Yes, most flip programs require a down payment of 10-20% of the purchase price. However, since we often fund 100% of the renovation costs, your "total skin in the game" can be significantly lower than a traditional mortgage.

Overages are typically the responsibility of the investor. That's why we emphasize having a 10-15% contingency fund in your budget. If the project's value also increases, we may be able to adjust the loan, but this is handled on a case-by-case basis.

While some lenders allow personal names, most professional flipping loans require closing in an LLC or corporation. This provides legal protection and is often required for the specialized "commercial" terms these loans offer.

Flip loans are short-term, usually ranging from 6 to 12 months. Most programs include options for 3-month extensions if the renovation or sale takes longer than anticipated.

This is the "BRRRR" strategy. We can help you refinance your short-term flip loan into a long-term DSCR or conventional rental loan as soon as the renovation is complete and a tenant is in place.

Most flip loans have no prepayment penalties, allowing you to pay off the loan as soon as you sell the property. Some lenders may require a minimum of 3 months of interest, but we always look for the most flexible terms for our clients.