Fix-and-Flip Loans
Buy it, renovate it, sell it. Financing built around that sequence — the purchase and the rehab budget in one facility, released in draws, on a term matched to the project rather than to a mortgage horizon.
At a glance
- Exit
- A sale
- Rehab funds
- Released in draws
- Sizing
- After-repair value
- Lender panel
- 20+
Scope: nationwide. Fix-and-flip is business-purpose lending and we broker it across the country, with Eric Figueroa as broker of record. Owner-occupied home loans are available in California only.How it works
It is the same money as hard money, pointed at a specific plan.
The underwriting, the draw mechanics and the lenders overlap almost entirely. What differs is the exit: a flip is underwritten against a sale, and everything follows from that.
Shared
- Underwriting
- Draw mechanics
- Lenders
Hard money
Sale or refinanceFix-and-flip
A saleWho this fits
You are buying a property below market because of its condition
You have a scope of work and a realistic budget
Your plan is to sell on completion, not to hold
The property will not pass conventional financing standards in its current state
You need to close faster than a conventional lender can move
You are buying at auction or from a distressed seller
Who this does not fit
You intend to keep it as a rental. Then the exit is a refinance rather than a sale, and the file should be structured for it from the start. DSCR is the take-out, and hard money is the way in.
Your margin is thin. After purchase, rehab, carrying costs, financing costs and selling costs, a project that looked profitable on the purchase price alone often is not. The numbers have to work with all of it in.
Your budget is a guess. Overruns are normal. A budget with no contingency is the most common way these projects go wrong.
You are buying a home to live in. Business purpose only.
You have no working capital. Rehab funds are reimbursed after work is completed and inspected. You fund it first.
How it works
The facility
The purchase and the rehab are financed together, with the rehab portion held back and released in draws as work is completed and inspected — the same mechanic as ground-up construction, on a shorter cycle.
Sizing usually looks at the after-repair value as well as the current value. Which measure applies, and at what proportion, differs by lender and by project.
The exit
The term is short and the maturity date is fixed. It is set against your build and sale schedule, not against a 30-year horizon.
The exit is the underwriting. A sale at a realistic price on a realistic timeline is what the lender is actually lending against. A weak exit is the most common reason these files are declined.
Full mechanics — draws, retainage, extensions, position — are on the hard money page, which is the product this is placed as. We are a brokered business and place the file from a panel of 20+ lenders.
The honest trade-offs
Every month the project runs long costs you twice: the carrying cost, and the delay to the sale. Projects overrun more often than they finish early.
This is expensive money, and deliberately so — you are paying for speed and for a lender willing to take on a property in poor condition.
A flip that does not sell becomes a hold you did not plan for. That is survivable if the property lets and refinances into DSCR — and it is worth knowing whether it would, before you buy, rather than after the third price reduction.
Frequently Asked Questions
Are the renovation costs included?
Usually, held back and released in draws as the work is completed and inspected. You or your contractor fund the work first and are reimbursed, so working capital is essential.
How is this different from hard money?
It largely is hard money, structured for a purchase-renovate-resell plan. The difference is the exit being a sale rather than a refinance, and the rehab budget being part of the facility.
Do I need previous flips behind me?
Experience helps, and the requirement varies by lender. Ask at the scenario analysis rather than assuming a first project rules you out.
What if it does not sell?
Ask about an extension early — weeks before maturity, not on the day. The other route is renting it out and refinancing into a rental loan, which is worth assessing before you buy rather than after.
Can I live in it while I renovate?
No. These are business-purpose loans.
How fast can it close?
Faster than conventional financing — that is much of the point. The variables are the valuation and the title work. See hard money for the realistic range.
What happens if the renovation goes over budget?
You cover it. Lenders rarely increase the facility mid-project, so an underestimated budget becomes your problem at the worst moment.
Do you fund these yourselves?
No. We are a brokered business and place the file with the lender whose program fits it.
What happens next
The product this is placed as
Hard Money / Bridge / Asset-BasedThe full mechanics: draws, positions, extensions, exits.
You are here
Fix-and-Flip
Buy it, renovate it, sell it.
If the rehab grows
Mid-Construction FinancingIf the rehab turns out to be closer to a rebuild, or the money runs out part-way.
If the flip becomes a hold
DSCR LoansThe take-out if the flip becomes a hold, qualified on the rent rather than your income.
Request a Scenario Analysis
Send the purchase price, the scope of work, the budget, and the resale figure you are underwriting to. We will test the exit first, because it decides the rest.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.