What it is
What a Fix & Flip Home Loan actually is.
Holding costs are what erode a flip, so the two things that matter in this financing are how predictably rehab draws are released and how quickly the lender can move on the next deal. Both are worth asking about specifically, because both are where these loans go wrong.
The structure is standard across the market: leverage quoted as a percentage of total project cost, capped again by a percentage of after-repair value, with no personal income verification. Ninety percent of cost and seventy-five percent of ARV are common ceilings; the binding constraint is whichever one is lower on the deal.
Track record is a pricing input on these programs. Borrowers with completed projects behind them generally see better leverage and better terms than first-time flippers, who can still qualify on strong reserves, a realistic scope and a deal that is priced correctly going in.
Who it suits
Borrowers this program is built for.
None of these is a rule, and matching every line does not qualify anybody. They are the situations where this program tends to be the one worth pricing first.
- Real estate investors flipping properties for profit
- Wholesalers transitioning to active investors
- Investors with strong contractor relationships
- Borrowers experienced in renovation projects
What it gives you
The parts that make it worth choosing.
Up to 90% LTC
Finance up to 90% of total project cost (purchase + rehab).
Shorter Path to Closing
Because these loans are underwritten on the deal rather than on personal income, there is far less to verify. The appraisal and the title work usually set the floor on how fast a file can move.
No Income Verification
Asset-based underwriting on the deal, not your tax return.
Rehab Funds Held in Escrow
Renovation budget releases in draws as work completes.
How the process runs
4 stages, in order.
This is the shape of a real file, written for a demonstration. Any timeline, fee or turnaround named below is invented for the example and is not a commitment — no step here can actually be started, because Copperline Home Loans does not exist and holds no license.
- Submit DealSend property, rehab budget, and ARV (after-repair value).
- Term SheetThe lender responds with leverage, rate, points and the draw schedule it is willing to write against the deal as submitted.
- CloseTitle and the valuation are the gating items. A borrower the lender has funded before generally moves faster, because the borrower file is already built.
- Rehab & SellDraw rehab funds as work completes, then sell and pay off the loan.
Questions