Fix & flip loan requirements

Fix & flip loans are asset-based, so the requirements look very different from a conventional mortgage. Here is what lenders actually weigh — and where you have leverage to get better terms.

The deal comes first

A fix & flip loan is underwritten primarily on the project: the as-is value, the rehab scope, and the after-repair value. If those three numbers tell a coherent, profitable story with a margin of safety, you are most of the way to approval. This is why experienced flippers and first-timers can both get funded — the property secures the loan.

Down payment and skin in the game

Almost every fix & flip lender wants the borrower to have capital at risk. Expect to bring roughly 10–15% of the purchase price plus closing costs, though leverage varies with experience and deal strength. Lenders often fund up to 100% of the rehab budget through draws even when they require a purchase down payment.

What raises (or lowers) your leverage

These factors move your terms:

• Experience — a track record of completed flips earns higher leverage and lower pricing
• Credit — affects rate and leverage, but is rarely a hard cutoff
• ARV support — strong comparable sales let the lender lend more with confidence
• Rehab scope — a detailed, realistic budget signals a lender you can execute
• Reserves — cash to cover carrying costs and overruns reduces lender risk

The paperwork you will need

A typical file includes the purchase contract, a line-item rehab budget, a scope of work, comparable sales supporting ARV, proof of funds for the down payment and reserves, entity documents (the LLC taking title), and property insurance. Cleaner files close faster.

Frequently asked questions