What is a fix-and-flip loan?
A fix-and-flip loan is a short-term, interest-only, business-purpose loan for buying and renovating an investment property you plan to sell or refinance. Lenders commonly fund up to about 85–90% of the purchase price and up to 100% of the rehab budget, with the total loan capped near 70–75% of after-repair value (ARV). Terms vary by lender.
Quick example: a $200,000 purchase with a $50,000 rehab and a $340,000 ARV. At 85% of purchase and 100% of rehab, the cost-based limit is $170,000 + $50,000 = $220,000. At a 70% ARV cap the ARV limit is $238,000, so the cost-based figure binds and the loan is $220,000. That is 88% of the $250,000 total cost, and you bring the $30,000 balance of the purchase price plus points, closing and carrying costs.
| Purchase advance: 85% × $200,000 | $170,000 |
| Rehab holdback: 100% × $50,000 | $50,000 |
| Cost-based limit | $220,000 |
| ARV limit: 70% × $340,000 | $238,000 |
| Maximum loan (lower of the two) | $220,000 |
| Loan-to-cost: $220,000 ÷ $250,000 | 88.0% |
| Down payment: $200,000 − $170,000 | $30,000 |
Illustrative assumptions, not a quote. Leverage, ARV caps and fees vary by lender, experience, credit and property.
The rulebook vs. the lender vs. your actual project
Fix-and-flip questions get easier once you separate three layers.
- Public legal framework: Credit to acquire or improve a non-owner-occupied property is generally business-purpose credit, exempt from most Truth in Lending Act and Regulation Z consumer rules under 12 CFR 1026.3(a). That is also why these loans cannot be used for a home you will live in.
- Private lender matrix: There is no federal fix-and-flip guideline. Each private lender sets its own purchase leverage, rehab funding, ARV cap, experience tiers, liquidity rules and draw process, and those terms change over time.
- Your project: Purchase price, scope of work, contractor, permits, timeline, comparable sales and exit plan have to tell one coherent story.
Fix-and-flip guides by topic
Each guide goes deep on one question. Start with requirements if you are new to flip financing, or jump to the topic holding up your deal.
Fix & Flip Loan Requirements
Credit, cash to close, liquidity, experience, property type, scope of work, entity and documents: what lenders commonly check and a worked example of the cash you need to show.
Read the guide →ARV & Loan-to-Cost Explained
How after-repair value is set, how loan-to-cost and the ARV cap interact, which limit binds and how a low appraisal changes your cash, with three worked examples.
Read the guide →Rehab Draws, Inspections & Holdbacks
How the rehab holdback is released: the draw schedule, inspections, reimbursement versus advance, interest on drawn versus full balance, and the working capital you need between draws.
Read the guide →First-Time Flipper
How experience tiers work, what changes on a first flip (leverage, loan size, liquidity, scope), what counts as experience and how a first-timer compares with an experienced investor on the same deal.
Read the guide →Fix & Flip Program Overview
The full program page: typical 2026 terms, what lenders look at, a worked example with a stress test, and when another product such as a bridge, DSCR or construction loan fits better.
Read the overview →Keeping it as a rental?
If you plan to hold the finished property, a DSCR loan can be the long-term takeout. Check rent, value and seasoning rules before you close the flip loan.
See DSCR loans →Typical fix-and-flip terms at a glance (2026)
| Item | Common range (varies by lender) |
|---|---|
| Purchase leverage | Up to about 85–90% of the purchase price for experienced investors; often around 75–85% for first-time flippers |
| Rehab funding | Up to 100% of the approved budget, held back and released in draws |
| ARV cap | Total loan commonly capped around 70–75% of after-repair value |
| Term | Interest-only, commonly 6–18 months (12 is typical); some programs run up to 24 months, and extensions are often available for a fee |
| Points | Commonly 1–3 origination points, plus appraisal, legal, processing and per-draw inspection fees |
| Credit | Minimums commonly around 620–680; the best leverage and pricing often at 700+ |
| Use | Non-owner-occupied investment property only; business-purpose credit |
LoanFight does not publish flip-loan rate quotes, because pricing comes from each lender’s current matrix. Compare written offers on the same terms: rate, points, draw and extension fees, minimum interest, whether interest accrues on the full loan or only on drawn funds, and the cash you need at closing.
Fix and flip guide: frequently asked questions
How much will a lender lend on a fix and flip?
Commonly up to about 85–90% of the purchase price and up to 100% of the rehab budget, with the total loan capped around 70–75% of after-repair value. The lender uses whichever limit is lower, and first-time flippers usually get less leverage. Terms vary by lender.
Is a fix-and-flip loan a business-purpose loan?
Generally yes. Credit to acquire or improve non-owner-occupied investment property is business-purpose credit, exempt from most Regulation Z consumer rules under 12 CFR 1026.3(a). These loans are not available for a home you will live in.
How long is a typical fix-and-flip loan?
Commonly 6 to 18 months interest-only, with 12 months typical; some programs run up to 24 months. Extensions are often available for a fee but are usually conditional, so plan to finish well inside the original term.
Does LoanFight make fix-and-flip loans?
No. LoanFight is an education and matching company, not a lender. You share the deal through the LoanFight intake form, LoanFight reviews the scenario and then connects you with an appropriate lending partner, which sets the final terms.
Have a flip under contract or in mind?
Share the purchase price, rehab budget, expected ARV, your experience and timeline. LoanFight reviews the scenario and connects you with a lending partner whose program fits. LoanFight is not a direct lender.
Tell Us About Your Deal →Sources and review notes
Business-purpose treatment of credit to buy or improve non-owner-occupied property: CFPB, Regulation Z, 12 CFR 1026.3(a) and its official interpretation. Lead-safe renovation on pre-1978 homes: EPA Renovation, Repair and Painting Program. Typical ranges summarize commonly published private business-purpose lending terms as of October 2026; they are not any single lender’s guidelines.
Educational information only, not an offer, approval or financial, tax or legal advice. LoanFight is not a direct lender and does not set final loan terms. Equal Housing Opportunity.