Fix & flip and bridge loans · Investors
Finance the purchase and the renovation, then sell or refinance.
A fix and flip loan is a short-term investor loan that funds most of the purchase price and up to 100% of the renovation budget, interest-only for 12 to 24 months, sized against what the property will be worth after repairs. Bridge loans use the same structure to buy or refinance before long-term financing.
The structure
How do fix and flip loans work?
The lender funds a share of the purchase price, commonly 85–90%, plus up to 100% of the rehab budget, as long as the total loan stays under about 70–75% of the after-repair value (ARV). Rehab funds are released in draws as work is completed.
| Worked example | Amount |
|---|---|
| Purchase price | $800,000 |
| Renovation budget | $150,000 |
| After-repair value (ARV) | $1,200,000 |
| Purchase funded at 85% | $680,000 |
| Rehab funded at 100% | $150,000 |
| Total loan | $830,000 |
| Cap at 75% of ARV | $900,000, so the loan fits |
| Your cash for the purchase | $120,000 plus closing costs and points |
Illustration only. Leverage rises with experience: first-time flippers usually see lower loan-to-cost limits.
Typical terms
What are typical fix and flip loan terms?
| Term | Typical range |
|---|---|
| Purchase financed (loan-to-cost) | 85–95%, higher for experienced investors |
| Rehab financed | Up to 100%, paid in draws |
| Maximum loan to after-repair value | 70–75%, up to 80% at some lenders |
| Term | 12 to 24 months, extensions available |
| Payments | Interest-only |
| Pricing | Higher than DSCR or conventional, plus origination points |
| Credit | Commonly 650+ |
| Loan size | About $75,000 to $5 million |
Typical market ranges as of October 2026. Ground-up construction is available for experienced builders on separate terms.
Bridge loans
What is a bridge loan for investors?
An investor bridge loan is short-term financing, usually 12 to 24 months and interest-only, used to buy or refinance a non-owner-occupied property quickly and then exit into a sale or a long-term loan.
- Close fast on a property that does not qualify for long-term financing yet.
- Light renovation before renting or selling.
- Pull cash from one property to buy the next.
- Buy, renovate, rent, refinance: exit into a DSCR loan once the property is stabilized.
Getting approved
Do I need flipping experience?
No, but experience changes the terms. Lenders tier their leverage by how many projects you have completed in the last two or three years. A first-time flipper may get a lower share of the purchase financed and need more cash in the deal; an investor with five or more completed flips can see the highest leverage and the lowest pricing.
Every lender will review the purchase contract, a scope of work and budget, the after-repair value from an appraisal, your credit, and liquidity to cover the down payment, closing costs and several months of interest.
Common questions
Fix and flip loan FAQ
What is a fix and flip loan?
A fix and flip loan is a short-term, interest-only investor loan that finances most of an investment property’s purchase price and its renovation budget, sized against the after-repair value, with a term of about 12 to 24 months.
How much down payment do I need for a fix and flip loan?
Commonly 10% to 15% of the purchase price, plus closing costs and points. The rehab budget can often be financed in full. First-time flippers usually put down more.
What is ARV?
ARV is the after-repair value: what the appraiser expects the property to be worth once the planned renovation is complete. Most lenders cap the loan at 70% to 75% of ARV.
Can a first-time investor get a fix and flip loan?
Yes. Many lenders work with first-time flippers at lower leverage and may require a stronger budget, contractor or reserves.
Can I refinance a flip into a long-term rental loan?
Yes. A common plan is to buy and renovate with a fix and flip or bridge loan, rent the property, and refinance into a DSCR loan.
Are fix and flip loans for owner-occupied homes?
No. Fix and flip and investor bridge loans are business-purpose loans for non-owner-occupied investment property.
Send the deal
Get terms on your next project
Send Justin the address, purchase price, rehab budget and your estimated after-repair value. You’ll get the leverage, cash to close and timeline, usually the same day.
Franklin Direct is a mortgage lender in Ladera Ranch, California, powered by Franklin Loan Center. Our team specializes in Non-QM, self-employed and investor loans, and we typically close Non-QM loans in about 12 days.
Three ways to start
Apply now, or email or text Justin directly — usually answered the same day.