Question 1

What is a fix-and-flip loan?

Accepted Answer

A fix-and-flip loan is a short-term, asset-based mortgage used to buy and rehab a property with the intent to resell for profit. It funds both the acquisition and the renovation and is typically underwritten to the after-repair value (ARV).

Question 2

How long is a typical fix-and-flip loan term?

Accepted Answer

Terms usually run 6 to 24 months with interest-only payments. Extensions are usually available for a fee if the project runs long.

Question 3

How much down payment do I need?

Accepted Answer

Most programs finance 85-90% of the purchase price and 100% of the renovation budget, up to a combined 75% of the ARV. Experienced investors with strong track records can access even higher leverage.

Question 4

What credit score is required?

Accepted Answer

Fix-and-flip lenders generally look for a credit score of 660 or higher, with the best pricing at 720+. Underwriting weighs experience, liquidity, and the deal itself more heavily than income documents.

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