Home / Fix and flip loans guide
Fix and flip loans, explained
Everything a Dallas investor needs to know about fix and flip loans: how they are sized, what they cover and how to get one approved.
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Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
What a fix and flip loan is
A fix and flip loan is a short-term loan for buying a house that needs work, renovating it and selling it. Terms usually run 6 to 12 months, payments are usually interest-only, and the loan is paid off in full when the house sells.
Unlike a home mortgage, the lender cares most about the deal: the price, the rehab and what the finished house is worth.
How lenders size the loan
Most lenders use two limits: a share of your total cost and a share of the after-repair value. We fund 100% of your total cost, up to 70% of the after-repair value.
| Deal | Amount |
|---|---|
| Purchase price | $190,000 |
| Rehab budget | $70,000 |
| Total cost | $260,000 |
| After-repair value | $380,000 |
| 70% of after-repair value | $266,000 |
| Loan amount | $260,000 |
How rehab draws work
The rehab money is held back at closing and released in draws as work is completed. You or your contractor finish a stage, request a draw, an inspector confirms the work and the money is released. Plan your contractor's payment schedule around draws so the job never stalls.
How to qualify
- A signed purchase contract on an investment property
- A rehab budget or contractor bid
- Comparable sales that support the after-repair value
- An LLC or other entity to hold title, in most cases
- Enough cash for closing and holding costs
See the full hard money loan requirements or start with our Dallas fix and flip loans.
Hard money loans across Dallas–Fort Worth
We lend on investment houses throughout the DFW metroplex, in Dallas, Tarrant, Collin, Denton and surrounding counties.
Questions investors ask
Straight answers about fix and flip loans.
How long is a fix and flip loan?
Usually 6 to 12 months. Most investors sell well before the term ends.
Are payments interest-only?
Usually, yes. You pay interest monthly and repay the loan when the house sells.
How much of a Dallas flip will you fund?
100% of the purchase price and 100% of the rehab budget, as long as the total loan is no more than 70% of the after-repair value.
What is the smallest loan you make?
Loans start at $150,000.
Can I use this loan on a home I will live in?
No. These are business-purpose loans on investment property only. The house has to be one you are buying to renovate and sell or rent.
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