Fix-and-flip financing funds the acquisition and rehab of a property that the investor plans to renovate and sell within 6-18 months for profit. It combines a purchase loan (80-90% of purchase price) with a rehab loan (100% of approved renovation budget), both capped at 65-75% of the property's after-repair value (ARV).
Typical fix-and-flip terms: 9-12% rate, 1-3 origination points, interest-only monthly payments, 12-18 month term, and rehab funds released in draws after inspector sign-off on completed work. No tax returns; qualifying is based on credit (typically 650+ FICO), liquidity (2-6 months of interest + rehab reserves), and prior flip experience (1-3+ completed projects unlocks better pricing).
The keys to a profitable flip: buy 20-25% below ARV, budget rehab conservatively (add a 10-15% contingency), lock in the sale price early with a realistic ARV, and minimize hold time — every month of interest and taxes eats profit. Many investors now BRRRR instead of flipping to defer capital gains and build long-term equity, refinancing into a DSCR loan on the back end.
Compare fix-and-flip capital sources or start with a rate quote.