Fix-and-flip loans
Fix-and-flip loans provide short-term business-purpose financing for an investment property's purchase and renovation before resale.
Short answer
Fix-and-flip loans provide short-term business-purpose financing for an investment property's purchase and renovation before resale. The lender evaluates acquisition cost, scope of work, after-repair value, borrower experience, liquidity, and the exit plan. These are investment loans, not a substitute for owner-occupied renovation financing or a promise of project profit.
Fix-and-flip liquidity timeline
The approved budget and the cash timeline are different.
- Close
Acquisition cash, closing costs and the reserves required by the actual loan structure.
- Start work
Contractor deposits, materials and early labor that may be due before a draw is released.
- Document the draw
Completed work, invoices and any inspection required by the signed draw schedule.
- Carry to exit
Financing, taxes, insurance, utilities and contingency cash until the sale or refinance closes.
Hypothetical cash-timing test
Can the project pay its bills before the next draw?
Assume an investor models $60,000 for acquisition and closing, $25,000 for early renovation invoices, $4,000 a month for six months of carrying costs, and a $15,000 contingency. The sample plan calls for $124,000 of accessible liquidity before counting future sale proceeds.
This is a planning example, not a down-payment requirement or loan quote. If a draw later reimburses eligible completed work, the cash can return to the project. The investor still has to bridge the timing and cover any item the draw process does not accept.
Review my project and exit| Cash use | Assumption |
|---|---|
| Acquisition and closing cash | $60,000 |
| Work due before the first modeled draw | $25,000 |
| Six months of modeled carrying costs | $24,000 |
| Renovation contingency | $15,000 |
| Illustrative accessible liquidity | $124,000 |
Choose the exit before the work starts
A rental fallback is a second underwriting plan. It is not an automatic extension or refinance approval.
Sources and limits of this example
Sources checked September 26, 2026. CFPB Regulation Z explains the business-purpose treatment of credit used to acquire or improve non-owner-occupied rental property. IRS Publications 551 and 527 explain that property basis and improvement records matter, and that a rental fallback has its own expense and capitalization rules. The amounts and draw timing above are original assumptions. Use the signed loan documents, project contracts and tax advice for an actual decision.
Who this is for
- Investors buying a property to renovate and sell
- Operators comparing acquisition and renovation financing
- Investors testing a resale plan against a rental fallback
What it takes to qualify
- Purchase contract, current condition, and detailed renovation budget
- Contractor plan, permits, timeline, and experience
- Estimated resale value, cash reserves, and backup exit strategy
How it works with me
A process you can see the whole way through
Explain the goal
Start with the property, location, intended use, and timing. The short form carries this product into the team's review.
Review the evidence
Purchase contract, current condition, and detailed renovation budget. Contractor plan, permits, timeline, and experience. Estimated resale value, cash reserves, and backup exit strategy. Use the secure application for financial documents.
Compare actual options
The team checks current program requirements and complete costs before you choose whether to apply.
What to know before you decide
Cash flow during the renovation can decide the project
Renovation funds may be released through inspected draws rather than at closing. Plan for deposits, work completed before reimbursement, interest, taxes, insurance, and contingencies. A lender's approval of a budget does not guarantee that contractors finish on time or that resale supports the projected price.
Compare the tradeoffs
Compare origination fees, draw charges, interest on funded versus committed amounts, extension terms, and the cost of a delayed sale. Model a slower exit and a lower resale price before committing.
Rates and terms subject to change without notice. Not a commitment to lend. Not available in all states. This is not tax, legal, or financial advice. Consult a qualified professional for your specific situation.
Run your own numbers first
A generic calculator cannot establish eligibility for this program. Start with a documentation and property review.
Open the calculatorsRelated programs
Fix-and-flip loans: common questions
Can I live in a home financed with a business-purpose flip loan?
This path is for genuine investment use, not your primary residence. For a home you intend to occupy, start with an owner-occupied renovation or construction review instead.
Does the website check affect my credit?
No. The website assessment does not pull credit or approve a loan. It sends your answers to the team so the next conversation starts with your situation.
Fine-tune your Fix-and-flip loans plan
Send the property, purpose, timing, and numbers you already know. The email opens prefilled for this Fix-and-flip loans page so the review starts in the right lane.
Business-purpose and investor loans (including DSCR) are available in 40+ states.