In short
A fix and flip loan is short-term investor financing that covers both a property's purchase and its renovation, with rehab funds released in draws and the loan repaid at resale or refinance. Qualifying centers on the deal, the after-repair value, and the investor's experience, and blanket or cross-collateralized structures help scale multiple projects.
Reviewed by Christian Penner, NMLS #368289 · Last updated July 7, 2026
How does a fix and flip loan work?
A fix and flip loan is short-term investor financing that covers both the purchase of a property and its renovation, then is repaid when you sell or refinance. Lenders typically fund a percentage of the purchase price plus a portion of the rehab budget, releasing the renovation money in draws as work is completed. Qualifying leans on the deal, the after-repair value, and your experience more than your personal income. Investors scaling multiple projects can use blanket or cross-collateralized structures.
Key takeaways
A great flip lives or dies on financing that's fast, funds the rehab, and doesn't tie up all your cash. Our team helps real estate investors across the communities we serve fund the purchase and the renovation in one facility, then exit cleanly at resale or refinance. We specialize in loans that are tough to close, and we shop a broad network of lenders and private capital to keep your projects moving.
Financing Built for the Flip
A flip is a business project with a deadline, and your financing needs to work like one. Fix and flip loans fund the buy and the rehab together, price around the property's after-repair value, and are built to be paid off quickly at resale. Our team helps investors line up capital that moves at the speed of a good deal. Where other lenders stop, we keep working.
What These Loans Typically Cover
- Purchase — A percentage of the acquisition price
- Rehab — A portion of the renovation budget, released in draws as work is completed and inspected
- Short term — Structured to be repaid at resale or refinance, not held for decades
Qualifying Is About the Deal
Unlike an owner-occupied loan, fix and flip underwriting centers on the project: the purchase price, the rehab scope, the projected after-repair value (ARV), and your track record as an investor. Strong deals with realistic numbers and experienced operators move fastest. We help you present the project so lenders see the opportunity clearly.
Scaling With Blanket and Cross-Collateral
When you're running more than one project, single-property loans get clunky. Two structures help you scale:
- Blanket loans — One loan secured by multiple properties, simplifying financing across a portfolio
- Cross-collateralized loans — Using equity in one property to strengthen the financing on another, useful for freeing up capital between deals
We'll help you decide when these make sense and when a clean single-property loan is the better move.
Speed and Exit
Like other short-term financing, fix and flip money costs more than a conventional loan and needs a clear exit — the sale, or a refinance into a rental loan if you decide to hold. We map that exit up front so your profit isn't eaten by carrying costs.
Let's Fund Your Next Project
Bring us the deal and the numbers, and our team will help you structure financing that funds it and exits clean. Let's find the best path forward.
All program details and figures on this page are illustrative examples for general education only and are not an offer to lend. Program availability, pricing, and guidelines vary and are subject to change. Contact our team for current details specific to your situation.
Quick facts
- Loan type
- Short-term fix & flip investor loan
- Covers
- Purchase plus a portion of rehab
- How you qualify
- Deal, after-repair value, and experience
- Rehab funds
- Released in draws as work is completed
- Scaling options
- Blanket and cross-collateralized structures
- Cost & leverage
- Varies by deal and experience — ask for current figures
Is this loan right for you?
Who it's for
- Real estate investors buying properties to renovate and resell
- Flippers who need purchase and rehab funded together
- Experienced operators scaling multiple projects at once
- Investors who want blanket or cross-collateralized structures
- Anyone with a strong deal and a realistic after-repair value
Who it may not fit
- Buyers purchasing a primary residence to live in
- Investors without a realistic exit or a workable rehab budget
Pros and cons
Pros
- Funds both the purchase and the renovation in one facility
- Qualifies on the deal and after-repair value, not personal income
- Rehab money released in draws as work is verified
- Blanket and cross-collateral options to scale a portfolio
- We shop lenders and private capital to move at deal speed
Trade-offs to weigh
- Higher cost than conventional financing given the short term
- Requires a realistic rehab budget and a clear exit strategy
Frequently asked questions
How much of the purchase and rehab will a lender fund?
Typically a percentage of the purchase price plus a portion of the rehab budget, based on the deal and the after-repair value. Stronger deals and experienced investors generally get better leverage. Ask our team for current figures on your project.
How is the rehab money paid out?
In draws as the work is completed and inspected, similar to a construction loan. This keeps the project on track and protects both you and the lender.
What is a blanket loan?
A single loan secured by multiple properties, which simplifies financing when you're managing several projects or a portfolio. We'll help you decide when it beats separate single-property loans.
Can I cross-collateralize to free up cash?
Often yes. Using equity in one property to strengthen the financing on another can help you free up capital between deals. It adds complexity, so we'll walk you through the trade-offs.
What if I decide to keep the property as a rental?
Then your exit becomes a refinance into a longer-term rental loan instead of a sale. We can line that up so you move smoothly from the flip loan to a hold strategy.
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Last updated July 7, 2026 · Reviewed by Christian Penner, NMLS #368289. This page is educational and not a commitment to lend; program details change — ask for current figures.