California Fix & Flip Loans
Close in 7 Days. Fund 90% LTC.

A fix and flip loan (also called hard money or bridge loan) is short-term financing designed for real estate investors who buy, renovate, and sell properties for profit. These loans typically cover 80-90% of the purchase price plus 100% of renovation costs, with terms of 6-18 months. They're asset-based, meaning approval depends more on the deal than your personal income.

Fix and flip loans can close in as fast as 7 days, with most deals closing in 10-14 days. This speed comes from streamlined underwriting that focuses on the property and deal metrics rather than extensive income documentation. Some lenders offer same-day pre-approval and can fund even faster for experienced flippers with established relationships.

Most fix and flip lenders require a minimum 620-660 credit score. Unlike conventional loans, these are primarily asset-based, so the deal quality matters more than your credit. However, better credit scores (680+) typically get better rates and higher leverage. Some lenders work with scores down to 600 for experienced flippers with strong deals.

Fix and flip loans typically require 10-20% down on the purchase price. New flippers usually need 15-20% down, while experienced investors with track records may qualify for 10% down or less. The total cash needed also includes closing costs (2-4%) and any portion of rehab not covered by the loan.

Many lenders work with first-time flippers, though terms may be more conservative (higher rates, lower leverage, more reserves required). Having a contractor, mentor, or partner with experience can help. Most lenders want to see your renovation scope of work and budget to ensure the project is realistic.

After closing, you fund initial renovation work. As you complete phases (demo, framing, electrical, etc.), you request draws. The lender sends an inspector to verify completed work, then releases funds (usually within 1-3 days). Most lenders pay draws based on percentage of work completed or pre-agreed milestones.

Most fix and flip loans offer extension options (typically 3-6 months) for a fee (usually 0.5-1% of the loan amount). It's important to build a realistic timeline and budget contingency into your project plan. If you need more time, communicate early with your lender - they generally prefer extensions over foreclosure.

Use fix and flip loans for properties needing significant renovation that you plan to sell within 6-18 months. Use DSCR loans for stabilized rental properties you plan to hold long-term. Many investors use fix and flip financing to acquire and renovate, then refinance into a DSCR loan if they decide to keep the property as a rental.