Fix N Flip Loan

Fix N Flip Loan Tear Sheet

Loan Amount	$75,000 minimum. No firm maximum. Loan pricing and leverage improves at $100k+ loan amounts and where rehab is less than property purchase price.
Loan Term	12 - 24 months
Coverage Area	Most States
Timeline to Close	14 - 21 days
Loan To Cost	90% of purchase price + 100% of rehab available for borrowers with 700+ credit score, where rehab budget is less than property purchase price and total loan amount $100k+. No experience required. For scenarios where rehab is greater than the purchase price, or borrower has less than 700 credit score, lenders will lend a lower percentage of purchase price + 100% of rehab.
After Repair Value (ARV)	70–75% i.e. the loan amount including rehab budget cannot exceed 70–75% of the as complete value of the project.
Fix N Rent instead of Fix N Flip Strategies	Allowed, as long as the loan meets on After Repair Value (ARV). This is a better fit for borrowers with 680+ FICO, who are likely more eligible for the highest leverage term loan refi programs upon completion of their project.
Delayed Purchase Scenarios	Generally, the same guidelines apply for property acquired for cash within the last six months, as a new purchase. Lenders will provide cash out at loan closing for properties owned outright and purchased recently, as if it were a purchase.
Mid Project Refi Scenarios	Fewer lenders offer this program than Fix N Flip purchase. Generally, lenders are maxed at 65% of as is value for the Day 1 loan amount, and 70–75% ARV. Properties that are already heavily leveraged, and properties owned outright longer than six months with a cash out request, will be scrutinized.
Entity (LLC or Inc) vs. Individual Name Vesting	Most common is Entity (LLC or Inc) vesting. Some lenders in some states allow individual name vesting.
Credit Scoring for Multi Member LLC	Lender will pull credit for only 1 Member, and does not need to pull credit for every Member.
Monthly Payment	Interest only. Most programs do not charge interest on undrawn amounts.
Foreign National Borrower	Allowed. Sometimes fix n flip loans for Foreign Nationals require higher down payment.
Interest on Undrawn Amounts	Most programs have no interest due on undrawn amounts (e.g. the portion of the rehab budget the borrower has not yet used).
Appraisal	Some lenders use internal underwriting (desktop appraisal) and some use third party appraisals.
Exit Plan	Sell the property, or refinance into a term loan and hold as a rental.

Fix N Flip Loan vs. Bank Loan vs. Self-Fund

	Fix N Flip Loan	Bank Loan	Self-Fund
Time to Close	14–21 days	45–90 days	Up to you, it is all your money
Leverage	Highest leverage, up to 90% purchase price + 100% rehab	Almost as high as fix n flip loan	0 leverage, it is all your money
Availability	Readily available	Not offered by all banks, only some	It is available, if you have the money
Cost of Capital	Private bridge rates	Sometimes slightly lower rates and points, but still tied to prime / floating	0 interest and points, but you have to use your own money

Fix N Flip Loan with DSCR Loan Refi Later vs. DSCR Purchase Loan

	Fix N Flip Purchase then Later DSCR Refi	DSCR Loan Purchase
Property Needs Non-Cosmetic Repairs	Loan includes a rehab budget.	Not an option. DSCR loans require the property to be rent-ready.
Leverage	Highest leverage. Up to 90% of purchase price and 100% of rehab. If it is truly a discount buy, and values hold, then DSCR refi can be the fix n flip loan amount or higher. Results not guaranteed.	Rates are best at loan amount 75% of purchase price. 80% of purchase price available at slightly higher rate. Any rehab would have to be out of pocket — it is not like a 203k loan.
Rates, Points and Fees	2 loan closings i.e. more closing costs and loan costs.	Near bank rates with good FICO score. 1 loan closing.

Fix N Flip Loan vs. DSCR Purchase Loan

	Fix N Flip Loan	DSCR Loan
Rates, Points and Fees	Higher rates and points	Near bank rates with good FICO score
Property Needs Repairs	Loan includes a rehab budget.	Can't close a DSCR loan with any non-cosmetic repairs needed or any safety issues.

Fix N Flip Mid Project Refi Notes

✅ Good Looks	❌ Not So Good Looks
✅ No debt, little debt, or moderate debt on the property	❌ Project is already overleveraged
✅ Recently sold nearby similar homes to support as complete value of the project	❌ No similar homes sold recently nearby to support value projection
✅ Borrower has investment experience outside of this project	❌ Borrower has no investment experience outside of this project
✅ Borrower has receipts for at least some of the work already completed	❌ Borrower has no receipts for any of the work completed
✅ Borrower has 700+ FICO score or at least high 600s FICO score	❌ Borrower has low FICO score
✅ Borrower is current with existing lender	❌ Borrower is past due on a hard money loan
✅ Borrower has the required plans and permits	❌ Borrower still does not have the permits needed to finish the work
✅ Borrower has a scope of work and breakdown for the remaining project cost	❌ Borrower does not know what it is going to cost to complete the project

Fix N Flip Loan Calculator

Fix N Flip Loan Calculator

Fix n flip loans and New construction loans are typically 12 month, 18 month, or 24 month balloon loans, interest only, where the borrower intends to repay the loan by either refinancing (taking out) the bridge loan with a permanent loan, or selling the property and repaying the loan at sale.

The "Rehab Holdback Use Factor" is a simplification to help estimate the total monthly interest payments. Our lenders typically don't charge interest on undrawn amounts, so we've included this percentage to adjust for not using the entire rehab holdback amount from the beginning of the loan. Our lenders typically have no minimum term length. They get you on the up front points and fees and then the total interest paid is variable depending on how soon you draw the money and how many months until you pay it back, with no minimum interest.

Purchase Loan Amount ($):

Rehab Holdback Amount ($):

Rehab Holdback Use Factor (%):

Loan Term (# of months):

Interest Rate (Annual %):

Points (% of loan amount):

Lender Fees ($):

Appraisal Fee if applicable ($):

3rd Party, Recording, Insurance, and Title ($):

# of Months to Sell or Refi	3 months	6 months	9 months	12 months
Total Interest Estimate, Sum of Monthly Payments ($):

Output: Up Front Loan Costs:
Output: Up Front Appraisal and 3rd Party Fees:
Total Up Front Loan Cost including 3rd Party ($):

Fix N Flip Loan Process

Step 1- Initial Discussion, Loan Application, and Term Sheet

Discuss the loan scenario including rehab construction plan, costs, and end value
Suggest relevant loan programs and provide parameters
Scope of Work form and recent experience schedule (we can get this over the phone too)
Loan application and initial info request (we can get this over the phone too)
Term Sheet and Appraisal Fee (if required)

Step 2- Initial Info Required for Fix N Flip Loan

Any remaining info points to complete the Loan Application
Photo of ID and void check
Contact information for your title agent and insurance agent
If borrower is an LLC, then LLC Operating Agreement and EIN Letter
Bank statements with cash to close and required reserves for Purchases

Step 3- Appraisal, Title, Insurance, and Additional Info from Borrower

Appraiser visits the property and completes the appraisal report or borrower submits geocoded photos for lender.
Lender reviews the appraisal report, internally re-checks value and reviews for property condition, or completes internal valuation.
Title agent provides title policy, works with lender on revisions and clarifications
Insurance agent provides insurance policy, works with lender on revisions and clarifications
Lender usually comes up with other things to ask for from borrower

Step 4- Final Underwriting, Closing, and Funding

Lender sends complete file to underwriting, and they may find issues or require more things at that point
Final coordination between title company and lender on loan docs and scheduling
Closing and Funding

Questions to Ask a Fix N Flip Lender

You should ask a fix n flip lender about their application and loan process, draw process, extension provisions, and whether lender frequently takes title. If a high percentage of their loans don’t perform, then that means obtaining property, instead of just loaning, is more than an incidental part of the lender’s business model.

It is most important to ask yourself if you want to take on a given project, and if you can realistically support the down payment, interest payments, and construction costs between draws, complete the project on time, and sell or refi to repay the loan within the 12 months.

What is a Fix N Flip Refi?

Fix N Flip refi refers to either a delayed purchase bridge for a property recently purchased with cash, a new loan on a property owned to begin construction, or refinancing an existing fix n flip bridge or construction loan with a new fix n flip bridge refi. Refinancing a completed fix n flip project with a DSCR would be considered DSCR refi.

Nonbank Clearing Advantages

Competitive leverage and pricing (multiple lender outlets)
Quick underwriting and structuring
Excellent service and simplified loan processing