Fix and flip loan requirements: what lenders really look at
2 min read
Fix and flip lenders care about two things: is the deal good, and can you complete it? Every requirement on their list ties back to one of those questions.
1. The deal
This matters most. Lenders look at:
- Purchase price compared with the property's as-is value
- Rehab budget, and whether it's realistic for the scope of work
- ARV, supported by recent sold comps
- The spread, meaning there's enough profit left after all costs to absorb surprises
A deal with a healthy margin can get funded even if you're newer. A thin deal is hard to fund no matter who you are.
2. Your experience
Lenders want to know you can finish the project. Past flips help, but if this is your first:
- Show the contractor you're using and their track record
- Bring in an experienced partner if you can
- Have a detailed scope of work and timeline
3. Credit
Most fix and flip lenders check credit, but it usually isn't the deciding factor it is for a mortgage. Stronger credit can mean better terms.
4. Cash and reserves
You'll need to show proof of funds for your down payment, closing costs and some months of payments.
5. Your entity
Most lenders lend to an LLC or other business entity rather than to you personally, so set yours up before you apply.
Make your application stronger
- Use a rehab budget worksheet with line-item costs and contractor quotes
- Include three to five solid comps for your ARV
- Run the deal through a fix & flip calculator and bring the numbers
- Keep your bank statements ready as proof of funds
Frequently asked questions
What credit score do I need for a fix and flip loan?
Requirements vary by lender. Many fix and flip lenders work with a wide range of credit scores because they focus on the deal, but higher scores generally get better rates and leverage.
Do I need experience to get a fix and flip loan?
Not always. Many lenders fund first-time flippers, especially with a strong deal, a realistic budget and an experienced contractor or partner. Experienced investors may qualify for higher leverage or better rates.
Can I get a fix and flip loan in my personal name?
Most fix and flip lenders require the loan to be in an LLC or other business entity, because these are business-purpose loans for investment properties.
Not sure where you stand? Take the Loan-Ready quiz or send me your deal.
Written by Jasmine Brown
Jasmine specializes in financing flips, new construction, DSCR, and multifamily nationwide. As an investor, she brings first-hand experience and strategic insights to her clients. Fund your next deal