If you're eyeing short-term profits in real estate, fix and flip investing might be your fast lane to success.
But flipping homes requires more than vision and elbow grease—it requires capital. And unless you have hundreds of thousands in cash, you’ll need a loan that’s built for speed and flexibility.
Enter the fix and flip loan.
In this guide, we’ll break down how fix and flip loans work, what they cost, the pros and cons, and where investors go to find the best funding for their next renovation project.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term real estate loan designed to help investors purchase and renovate a property with the intent to sell it for a profit—usually within 6 to 18 months.
These loans are often referred to as:
- Hard money loans
- Bridge loans
- Rehab loans
Unlike traditional mortgages, fix and flip loans focus less on your credit score or income, and more on the property’s potential after repairs.
Key Features of Fix and Flip Loans
FeatureTypical RangeLoan Term6 to 18 monthsInterest Rate8% to 12% (sometimes higher)Loan-to-Cost (LTC)Up to 85–90% of purchase priceLoan-to-Value (ARV)Up to 65–75% of After Repair ValueRehab FundsOften included via drawsCredit Score620+ (some lenders fund with lower)Funding Time7–14 days (sometimes faster)CollateralThe property being flipped
