Fix and flip loans are short term loans built for speed, designed to cover the purchase and renovation of an investment property you plan to resell for a profit. Kestrel Lending shops your fix and flip loan to 20+ lenders, helps you close in as few as 7 days, and delivers competing loan quotes in 24 hours. One easy application form. Multiple loan offers. The right financing for your next deal. Get Your Rate in 24 Hours.
A fix and flip loan is a short term, asset based hard money loan for real estate investors who buy a house, renovate it, and sell for a profit. Unlike traditional lenders, fix and flip lenders underwrite the deal, not the borrower. The flip loan covers the purchase price and rehab costs, with renovation funds released through a draw process as each stage of work is completed. Fix and flip loans typically carry a 6 to 12 month term (up to 18 months), with interest only payments and no prepayment penalties. This type of hard money loan financing is recommended for investors who need to close quickly, complete a renovation project, and move on to the next project.
Fix and flip financing is the most popular type of hard money loan in the Texas real estate market. Whether you are flipping houses in Houston or running fix and flip projects across Dallas, this financing option helps investors move fast and close quickly in competitive markets. The loan amount on a flip loan is determined by the after repair value (ARV) of the property, not just what you pay on closing day. Fix and flip loans remain the go-to real estate investment strategy for active investors who need speed, high leverage, and capital to close deals that banks will not fund. Finding the right loan product fast is what makes the difference.
| Loan Detail | Typical Fix and Flip Loan Terms |
|---|---|
| Interest Rates | 9.9% to 13.5% (rates typically range depending on experience and deal structure) |
| Points | 1.5 to 3 origination points |
| Maximum LTV | Up to 75% of after repair value (maximum ltv varies depending on the lender) |
| Loan to Cost | Up to 90% loan to cost on purchase plus 100 of rehab costs funded |
| Loan Term | 6 to 12 months standard, up to 18 months |
| Payments | Interest only payments, no prepayment penalties |
| Rehab Draws | Loan funds released in 2 to 5 draws as stages of work are completed |
| Closing Speed | Close in as few as 7 days, fast closings and quick closings available |
| Maximum Loan Amount | $75K to $3M maximum loan |
| Property Types | Single family homes, single family residences, 2-4 unit, planned unit developments, condominiums, condos |
| Fees | Origination fee, third party fees (appraisal required, title, insurance). No application fees, no prepayment penalties, no additional fees |
Fix and flip loan terms vary based on your experience, credit score, and the deal itself. Experienced investors who have completed five or more projects typically qualify for competitive rates, flexible terms, and higher leverage. First time flippers can still get a loan approved but should expect more conservative terms. In every case, the flip loan is underwritten on the property value and your exit strategy. Terms differ from lender to lender, so having someone who understands the variety of options is a significant advantage.
Fix and flip loans fund your full rehab costs through a structured draw process. Here is how draws typically work:
The draw process protects both sides: loan funds go to actual renovation, and you only pay on capital drawn. Fix and flip loans typically provide 3 to 5 draws per project. For answers on estimating renovation costs, read our guide on how to estimate rehab costs.
Here is an example of how a fix and flip loan works on a typical Texas investment property:
The maximum loan amount is the lower of 90% loan to cost or 75% of after repair value:
Full rehab costs of $60,000 are funded through loan draws as renovation stages are completed. You bring roughly $25,000 to the closing table.
At a 12% fixed interest rate on an average drawn balance of $210,000, your monthly loan payment is $2,100 per month. Over a 5 month hold, total interest cost is approximately $10,500. Interest only payments keep carrying costs low month over month while you complete the project.
This fix and flip loan deal easily passes the 70 percent rule: 70% of $380,000 = $266,000, and the purchase plus full rehab costs total $260,000, under the ceiling. That is the math investors run before making an offer. The terms and ROI justify the cost of hard money loan financing, and that is why fix and flip financing is the recommended strategy for time-sensitive real estate investing. Send us the property details and we will run the numbers the same day.
New investors can still qualify for a fix and flip loan. Expect higher interest rates (12% to 13.5%), lower leverage (80% to 85% of cost), and more documentation needed. Lenders typically require a realistic rehab budget, a clear exit strategy, and reserves for 3 to 6 months of payments. A credit score of 660+ improves your approval odds, though some lenders work with scores as low as 620. Income verification is lighter than banks or credit unions. The process is straightforward: choose the right house, discuss the deal with us, and move forward with confidence. We are here helping first time flippers secure the right financing fast.
Active investors get the best terms on fix and flip loans. Rates drop to 9.9% to 11%, high leverage increases to 90% of cost and 75% of after repair value, and the process is faster. Many lenders offer streamlined hard money loan underwriting for experienced investors: fewer inspections, faster draws, and greater flexibility on terms. Running multiple projects lets you negotiate volume offers and save thousands on interest over 12 months. Scaling your fix and flip business across Texas is where profit margins improve. If you have looked at going direct and considered other options, compare what we offer.
National lenders like Easy Street Capital, Kiavi, and Lima One each have their own lending box. When you apply direct to Easy Street Capital, you get one offer. If the deal does not fit, you start over. Easy Street Capital and similar national lenders lend across the country in dozens of states, from Arizona to California, Kansas to Louisiana, Minnesota to Oregon, Oklahoma to Utah, Vermont to Virginia, and Washington to the Carolinas (South Carolina, North Dakota, South Dakota). That means they rarely provide the deep Texas market expertise or connections needed to close fast in your area. Going direct can mean higher rates, less flexibility on terms, and no backup plan.
We submit your fix and flip loan application to lenders whose guidelines match your property details. You receive 2 to 3 competing loan quotes within 24 hours. If one lender retrades, we move the file to a backup, helping you avoid delays. Our fee is disclosed upfront. In most cases, competition on your flip loan saves enough on rates and points that the net cost matches or beats going direct to Easy Street Capital. We help investors who are transitioning from finding deals to finding the right financing. See how the process works.
Fix and flip loans are not the only financing option for real estate investors. A variety of other types of capital sources are available. Here is how they compare:
Check your eligibility criteria before you apply for a fix and flip loan:
If you fall short on an item, apply anyway. Our team will discuss your options and help you find the right path forward. Request a free quote with no application fees. Get Your Rate in 24 Hours.
Total cost includes interest rates (9.9% to 13.5%), origination points (1.5 to 3), and closing costs and fees. On a $234,000 flip loan with a 5 month hold, estimate $10,000 to $15,000 in total financing cost. No prepayment penalties apply, so finishing your flip faster saves money. Compare each financing option on our rates page. Pricing and terms differ by lender, which is why shopping your loan matters.
Fix and flip loans are short term financing designed for buying, renovating, and reselling. If your plan is to hold the property as a rental, use the flip loan for purchase and rehab, then refinance into a long term DSCR loan. This real estate investing approach is the BRRRR method. Many borrowers start with a fix and flip loan and grow their rental portfolio over the years.
Lenders typically require a 620 minimum credit score. Some on our panel work with scores as low as 580 at reduced leverage. Fix and flip loans are asset based: the investment property is the collateral. The credit analyst looks at the property value and your exit, not your financial situation.
Seven days is possible with clean title and a rush appraisal. Ten to fourteen days is typical. Fast closings give fix and flip investors an edge in competitive markets where buyers need certainty and cash offers that close on time.
Income verification is minimal. Lenders verify liquid reserves through bank statements, not income documents. The flip loan is underwritten on the property and the deal, not personal income. Fix and flip loans are suitable for self-employed borrowers. This is a key benefit of hard money loan financing: the loan is dependent on the deal, not your income.
Fix and flip loans include rehab draws to fund renovation costs. Bridge loans are short term financing to acquire a property fast without renovation. Both are hard money loans, but flip loans are designed for renovation projects. Learn more about bridge loans.
Yes. Active investors carry many loans across different fix and flip projects and market conditions. Lenders typically allow 3 to 10 concurrent flip loans for experienced borrowers. Running multiple projects is how investors scale, maximize returns, and grow.
Easy Street Capital is a respected national lender. Going direct to Easy Street Capital gives you one set of terms. Using Kestrel gives you competing offers from Easy Street Capital and other lenders, plus a backup if the deal falls through. For Texas fix and flip deals, using Kestrel typically matches or beats the terms you find going direct to Easy Street Capital.
Ready to fund your next fix and flip project? Kestrel Lending shops your deal to the right lenders and delivers competing loan term sheets in 24 hours. Send us your deal and view offers the same day. Get Your Rate in 24 Hours.
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