Fix and Flip Loans Ultimate Guide

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The Ultimate Guide to Fix and Flip Loans: Unlock Profits in Real Estate Investing

The Ultimate Guide to Fix and Flip Loans

How they work • Who they’re best for • Advantages & disadvantages • Free calculator included

Use Our Free House Flipping Calculator →

Published: November 24, 2025

In the fast-paced world of real estate investing, fix and flip loans are the go-to financing tool for turning distressed properties into profitable sales. At Jhenesis Mortgage — the nation’s leading non-QM mortgage broker — we specialize in getting investors funded fast, even when banks say no.

How Do Fix and Flip Loans Work?

Fix and flip loans are short-term, asset-based loans designed specifically for buying and renovating properties with the intent to sell quickly for profit. They are based on the property’s After-Repair Value (ARV), not your personal income or credit score.

  1. Find the deal → Auction, foreclosure, or off-market property.
  2. Get approved fast → Most close in 7–14 days.
  3. Fund purchase + rehab → Lenders release funds in draws as work progresses.
  4. Sell & repay → Loan is paid off from sale proceeds (typically 6–18 months).

Who Are Fix and Flip Loans Best For?

  • Experienced real estate investors scaling their portfolio
  • Contractors or teams who self-perform renovations
  • Self-employed borrowers or those with credit challenges (non-QM friendly)
  • Investors in hot markets with strong ARV upside

Advantages of Fix and Flip Loans

  • Close in as little as 7 days
  • Funding based on ARV, not your credit or income
  • Interest-only payments keep cash flow strong
  • Up to 90% of purchase + rehab costs
  • No prepayment penalties on most programs

Disadvantages of Fix and Flip Loans

  • Higher interest rates (8–15%)
  • Origination points (2–5% of loan)
  • Short terms (6–18 months) with possible extension fees
  • Risk if the property doesn’t sell quickly

Ready to Run Your Numbers?

Use our free house flipping calculator to instantly see your potential profit, maximum purchase price, and required ARV.

Open Free Flipping Calculator →

Frequently Asked Questions (FAQ)

What is the difference between a fix and flip loan and a traditional mortgage?
Fix and flip loans are short-term (6-18 months), interest-only, and based on after-repair value (ARV), ideal for investors. Traditional mortgages are long-term (15-30 years), amortized, and designed for owner-occupants with stricter credit and income requirements.
How much can I borrow with a fix and flip loan?
Most lenders finance 65-75% of the ARV or up to 90% of total project cost. For example, a $300,000 ARV property with $60,000 in repairs could qualify for $180,000–$216,000 in funding.
Do I need good credit for fix and flip loans?
No. Many non-QM fix and flip lenders approve credit scores as low as 620 and focus primarily on the deal’s strength and your experience rather than personal credit history.
Can beginners get approved for fix and flip loans?
Yes, but beginners typically face higher rates and lower leverage. Starting with a smaller project or partnering with an experienced investor greatly improves approval odds and terms.

Get Funded Fast with Jhenesis Mortgage

Speak with a non-QM fix and flip expert today — no obligation, just real answers.

Schedule Free Consultation →

© 2025 Jhenesis Mortgage | The Nation’s #1 Non-QM Broker for Fix & Flip Investors

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