KEY TAKEAWAYS
  • It generally costs more money to flip a house than to buy one as a home.
  • Lenders see flipping as a risky proposition and generally won’t work with inexperienced flippers.
  • Hard money lenders may be found online, and have terms of less than one year with interest rates of 12% to 18%, plus two to five points.
  • Consider vetting private lenders by speaking to other flippers.
  • Flippers may try crowdfunding sites to finance their investments.

House flipping is at its highest level since 2007 thanks to rising home prices and the increased availability of financing. What’s more, a limited supply is helping flippers earn higher profits now than they were getting after the 2008-2009 housing crisis, when foreclosures flooded the real estate market.

The Costs of Flipping Homes

While buying, fixing, and quickly reselling properties can be lucrative, it takes much more money to flip a house than it does to simply buy a house in which you want to live. Not only do you need the money to become the property owner, but you also need renovation funds and the means to cover property taxes, utilities, and homeowners’ insurance from the day the sale closes through the rehab work and until the day it sells. Short-term capital gains tax rates of 10% to 37%, depending on your federal income tax bracket, will cut into any profits you earn on properties you flip within one year or less.

 

Fix and Flip Financing FAQs

What type of properties are eligible for Fix-and-Flip loans offered?
The following property types are eligible for our fix and flip loans:

  • Single Family Residence (SFR)
  • 2-4 Unit Properties
  • Condominiums
  • Townhouses

 

What type of Fix and Flip rates are offered?
Rates are generally offered on Fix-and-Flip loan rates between 7.49%-12.9%. All rates are based on the individual property and borrower.

 

What are the minimum and maximum amounts of for Fix-and-Flip loans offered?
Fix-and-Flip loans have a minimum loan amount of $75K and a maximum loan amount of up to $4M (Exceptions Granted).

 

Do you lend on construction or repairs?
Yes, we specialize in providing Fix-and-Flip loans that include both the purchase and repair costs as part of one loan

Fix-and-Flip Loan
Best For
Experienced investors with 2+ flips or novice investors working with a contractor.
Investors with existing investment property and at least 30% to 40% equity.
Investors with primary residences and 30%+ in equity.
Investors with equity in rentals who want cash for purchases.
Investors who want to close quickly and plan on getting other financing later.
Buy-and-hold investors who want to flip over 5+ years.

 

Fix & Flip Hard Money Loans at a Glance

Hard Money Loan
Available Financing
Up to 90% of loan-to-cost (LTC); 75% ARV
Loan Term
12 months
Time to Approval/Funding
3 minutes to find rate and qualify; as few as 5 days for funding
Interest Rates
7.5% – 12%
Fees
1.5% – 2.5% lender fees
Closing costs: as low as $499, no hidden fees
Qualifications
620 minimum credit score
All levels of experience encouraged to apply

 

Fix & Flip Cash Out Refinance at a Glance

Fix-and-Flip Cash Out Refinance
Available Financing
75% loan-to-value (LTV)
Loan Term
15 – 30 years
Time to Approval/Funding
30 – 45 days
Interest Rates
5.45% – 5.75%
Fees
0% – 3% lender fees
Qualifications
640 minimum credit score (check yours free here)
45% maximum debt-to-income ratio
0 – 6 months cash reserves
Existing property with at least 30% to 40% equity

 

Fix & Flip Home Equity Line of Credit at a Glance

Fix-and-Flip Home Equity Line of Credit
Available Financing
Up to 85% combined loan-to-value
Loan Term
25 – 30 years
Time to Approval/Funding
30 – 45 days
Interest Rates
3.5% – 6.5% variable APR
Fees
0% – 2% lender fees
Qualifications
640 minimum credit score (check yours free here)
45% debt-to-income ratio
Existing home with at least 30% equity

Fix & Flip Investment Property Line of Credit at a Glance

Investment Property Line of Credit
Available Financing
Up to 90% of cost
Loan Term
Up to 75% loan-to-value (LTV)
Time to Approval/Funding
Up to 30 days
Interest Rate
6.99% and up
Fees
$75 annual service fee
1% – 5% closing costs
Qualifications
Minimum credit score of 620

 

Fix & Flip Bridge Loans at a Glance

Bridge Loan
Available Financing
$50,000 to $2.5M; Up to 85% loan-to-value (LTV) to purchase, up to 70% LTV to refinance, up to 65% LTV for cash out
Loan Term
12 to 18 months
Time to Approval/Funding
15+ days
Interest Rate
Starting at 7.99%
Fees
$500 appraisal fee
1% – 2% lender fees
Qualifications
The ability to pay two mortgages
20% + equity in your current property
A clear exit strategy (sale or refinance)

 

Fix & Flip Permanent Loan & Online Mortgages at a Glance

Permanent Bank Loan & Online Mortgage
Available Financing
Up to 96.5% of loan-to-value (LTV)
Loan Term
15 – 30 years
Time to Approval/Funding
30 – 45 days
Interest Rate
5% – 7%
Fees
0% – 1% lender fees
2% – 5% closing costs
Qualifications
Minimum credit score of 640 – 45% debt-to-income ratio