What is a fix and flip loan?
A fix and flip loan is short-term financing for investors who buy residential property, complete renovations, and sell for profit — or occasionally refinance into a rental.
Unlike owner-occupant mortgages, the focus is on the deal: purchase price, rehab budget, after-repair value (ARV), timeline, and your experience.
How financing is typically structured
Many programs combine acquisition and rehab in one facility. Funds for construction are released in draws as work is completed and inspected.
Leverage is often expressed as loan-to-cost (LTC) and loan-to-ARV (LTARV). Your margin after all costs — holding, selling, and financing — determines whether the project makes sense.
What lenders review
Underwriting is primarily asset-based: comps supporting ARV, scope of work, insurance, title, and borrower track record. Credit matters but rarely drives the decision alone.
Before you speak with a lender, model your deal with a fix and flip calculator, then bring clear numbers to your scenario review.
Next steps for investors
If the numbers work on paper, submit for a lender-reviewed scenario. Pillar's investor funnel asks deal-specific questions so your review is relevant to your project type.