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Short-term financing for renovation projects. Get the capital to buy, renovate, and sell—with fast closings and flexible draw schedules.
Key Takeaways
A fix and flip loan is short-term financing specifically designed for real estate investors who buy properties, renovate them, and sell for profit. Unlike traditional mortgages, these loans are structured for speed and flexibility, with terms typically ranging from 6 to 18 months.
Fix and flip loans typically cover both the purchase price and renovation costs, with renovation funds disbursed in draws as work is completed. This allows investors to leverage capital efficiently across multiple projects.
3-7 days
fastest closing times for hard money loans
60-70%
typical LTV for hard money loans (asset-based lending)
10-15%
interest rate range for commercial hard money loans
Source: Clear House Lending Market Data
2-5 points
typical origination fees for hard money financing
The loan covers a percentage of the purchase price (typically 80-90% of acquisition cost). Many lenders base maximum loan amount on the After-Repair Value (ARV), allowing you to borrow based on what the property will be worth.
Renovation funds are held in reserve and released in "draws" as work is completed. After you finish each phase of renovation, the lender inspects and releases funds for completed work. This protects both you and the lender.
Most fix and flip loans are interest-only during the loan term, minimizing monthly payments while you complete renovations. Some even allow interest reserves so you don't make payments during construction.
The loan is repaid when you sell the property (the flip) or refinance into permanent financing (the BRRRR strategy). Loan terms are designed to match typical flip timelines.
| Term | Typical Range |
|---|---|
| Loan Term | 6-18 months (extensions available) |
| Interest Rate | 10-14%+ |
| Origination Fee | 1-3 points (% of loan amount) |
| Purchase LTC | 80-90% of purchase price |
| Renovation Financing | 100% of rehab budget (common) |
| Max LTV (ARV) | 65-75% of After-Repair Value |
| Minimum Credit Score | 600-680 (varies by lender) |
| Closing Time | 5-14 days |
After-Repair Value (ARV) is what your property will be worth after renovations. Many lenders will loan up to 70-75% of ARV, which can cover 100% of your purchase plus renovation costs on the right deal. This is how experienced flippers minimize cash out of pocket.
| Purchase Price | $200,000 |
| Renovation Budget | $50,000 |
| Total Project Cost | $250,000 |
| After-Repair Value (ARV) | $340,000 |
| Max Loan (70% ARV) | $238,000 |
| Purchase Financing (90%) | $180,000 |
| Renovation Financing (100%) | $50,000 |
| Total Loan Amount | $230,000 |
| Cash Required | $20,000 + closing costs |
*Example for illustration. Actual terms vary by lender and deal specifics.
Asset-based loans from private lenders. Fastest closing (5-10 days), highest rates (10-14%+). Best for: deals requiring immediate closing, first-time flippers, credit-challenged borrowers.
Learn more about Hard Money Loans →
Similar to hard money but often from institutional lenders with slightly better terms. Closing in 2-3 weeks. Best for: experienced flippers, larger projects, better credit profiles.
Learn more about Bridge Loans →
Use fix-and-flip financing to buy and renovate, then refinance into a DSCR loan and hold as a rental. This "Buy, Rehab, Rent, Refinance, Repeat" strategy uses short-term debt for renovation and long-term debt for holding.
Clear House Lending's network includes hard money lenders, bridge lenders, and fix-and-flip specialists. We'll match you with financing that fits your project timeline and experience level.
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