Fix & Flip Loan
What is Fix & Flip Loan?
A Fix & Flip loan is a short-term loan used by real estate investors to purchase properties at a low price, renovate them, and resell them within a short period for profit. These loans are primarily used by house flippers or investors, targeting distressed or auctioned properties that are difficult to purchase with traditional mortgages.
We don’t limit ourselves to a single program. Instead, we work with Loan Factory to compare over 70 different flip loan products and offer the most favorable terms to our clients. Loan Factory is one of the largest mortgage brokerages in the U.S., with over 18 years of experience and the highest loan volume nationwide each year.
If you need a flip loan, you can get pre-approved at no cost, and we will guide you thoroughly through every step of the process.
📞 Contact: (631) 624-4480
Main Features:
| Feature | Description |
|---|---|
| Purpose | To buy, renovate, and resell the property |
| Term | Short-term loan, usually 6 to 18 months |
| Loan Amount | Covers up to 85–90% of the purchase price and 100% of renovation costs, up to 70–75% of the after-repair value (ARV) |
| Interest Rate | High rates, typically between 8% and 14% |
| Down Payment | Usually 10%–20% |
| Credit Score Requirement | Minimum 650, but some lenders are flexible |
| Funding Speed | Fast approval and funding, sometimes within a few days |
| Repayment | Usually interest-only during the loan term, then a lump-sum payment at the end (balloon payment) |
Documents Needed:
Property purchase agreement
Renovation plan and budget
Borrower’s real estate experience (if any)
Bank statements or proof of funds
Business entity documents (if applying under an LLC)
Ideal Borrowers:
Real estate investors aiming to renovate and flip properties for profit
Buyers seeking fast funding, even if interest rates are higher
Investors purchasing properties that are not eligible for traditional mortgages
Exit Strategies:
Sell the property after renovations
Refinance into a long-term rental loan (e.g., DSCR loan)
Transition to SBA or conventional loan if keeping the property for business use
Terry Kwon
Ph: (631) 624-4480
Licensed Mortgage Originator
NMLS #2620208
