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Fix & Flip Loan

What are Fix & Flip Loans?

House flipping is the process of buying a house, fixing and renovating it, and selling it for a profit. Fix & flip loans are for house flippers looking to finance a flip. However, Fix & flip loans are difficult to qualify for and usually only given to experienced fixers. It is generally less costly to buy a functional home than to repair a non-functional one.


Fix & flip loans can be Hard Money Loans, meaning that the property being purchased will be used as collateral. In the case of flipping, the house being flipped will be collateral in the case the borrower does not make payments. The amount of loan received in a hard money loan also depends on the property’s after-repaired value (ARV), or the value of the property after flippage.



Qualifying for a fix & flip loan differs from qualifying for a conventional loan. Lenders are less worried about debts and credit history and more concerned with the profitability of the proposed flippage and the borrower’s flipping experience. In general, the more likely a flippage is to succeed, the more likely a borrower is to qualify for a fix & flip loan.

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