One loan, two components
A fix-and-flip loan typically funds a large percentage of the purchase price plus 100% of the approved rehab budget, with rehab dollars released in draws as work completes.
Key numbers lenders use
Lenders size these loans off purchase price, rehab budget, and after-repair value (ARV), usually capping around 90% of purchase and 70–75% of ARV combined.
What makes a file fundable
A specific scope of work, ARV supported by real comps (not optimistic guesses), and a realistic timeline all speed approval and improve pricing.
- Line-item scope of work / rehab budget
- Comparable sales supporting ARV
- Purchase contract
- Track record, if you have completed flips before
First flip vs. experienced investor pricing
First-time flippers can still get funded, typically at slightly lower leverage or higher rate; three or more completed projects usually unlocks better pricing and terms.
Planning your exit before you close
Decide up front whether you plan to sell or refinance into a DSCR rental loan (a 'BRRRR' strategy) — it changes how the rehab budget and timeline should be built.