Nationwide Fix and Flip Loans
A fix and flip loan is short-term financing for investors buying, renovating, and reselling residential property. Qualification is based on the purchase price, after-repair value, and project scope rather than personal income. Westpark Loans, a licensed California mortgage broker, sources private and institutional capital to structure renovation financing for real estate investors nationwide.
Fix and flip loans provide short-term capital for investors purchasing properties that require renovation prior to resale. As a mortgage broker, Westpark Loans sources private and institutional capital to structure renovation financing based on purchase price, after-repair value (ARV), and project scope.
These loans are built for execution speed and defined exit strategy.
Short-term Bridge Loans may also be used before renovation begins.
This program is available in multiple states for business-purpose transactions, subject to lender and property guidelines.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term investment loan designed to finance both the acquisition of a property and the cost of renovation.
Unlike traditional mortgages, approval focuses on:
- Property value
- After-repair value (ARV)
- Renovation budget
- Investor experience
- Exit strategy (resale or refinance)
FIX AND FLIP QUALIFICATION GUIDELINES
Typical parameters may include:
- Financing based on purchase price and ARV
- Renovation draw schedules
- Interest-only payments
- Short-term duration (6–18 months typical)
- Flexible credit profile review
- Entity ownership permitted in many programs
Guidelines vary by lender and borrower profile.
PROGRAM STRUCTURE
Fix and flip financing may include:
- Purchase financing
- Rehab budget funding in staged draws
- Interest-only payments during construction
- Points and fees common in short-term capital
- Extension options (program dependent)
We structure renovation financing to align with acquisition, construction timeline, and resale plan.
FIX AND FLIP LOAN TERMS
Typical loan parameters may include the following. Guidelines vary by lender and borrower profile.
| Feature | Details |
|---|---|
| States Allowed | Nationwide (Business Purpose Only) |
| Loan Type | Short-Term Fix and Flip Loan |
| Lien Position | 1st Position |
| Loan Term | 6–18 months typical |
| Interest Rates | Interest-only common |
| Loan Amount | Based on purchase and ARV |
| LTV | Up to 95% LTV (purchase price and/or ARV dependent) |
| Rehab Costs | 100% |
| ARV | 80% max |
| Credit Score | Flexible; varies by lender |
| Occupancy | Investment properties only |
| Property Types | 1–4 unit residential typical |
| Prepayment | May apply depending on structure |
| Closing Time | Often 7–14 days depending on file readiness |
Strategic Use Cases
Fix and flip loans are commonly used for:
- Acquiring distressed properties
- Cosmetic renovation projects
- Value-add investment strategies
- Competitive cash-like offers
- Rapid resale cycles
Successful flipping requires disciplined budgeting and exit planning.
Process Overview
- Deal review including purchase and renovation scope
- Preliminary term sheet issued
- ARV evaluation and property valuation
- Underwriting review
- Funding and draw schedule activation
Most fix and flip transactions close quickly when documentation and contractor scope are clearly defined.
Important Considerations
- Short-term maturity requires defined resale strategy
- Interest rates higher than traditional financing
- Draw inspections may be required
- Construction delays impact profitability
We help align structure with realistic renovation timelines.
Fix and Flip vs Ground-Up Construction vs Bridge: Which Project Loan Fits?
These three loans all fund investor projects, but they map to very different work. A fix and flip loan funds buying and renovating an existing property to resell. A ground-up construction loan funds building a new structure from the ground up. A bridge loan funds a short-term hold or transition without a renovation or build at its center. The table below shows which one matches the scope of your project.
| What matters to you | Fix and flip loan | Ground-up construction loan | Bridge loan |
|---|---|---|---|
| What it funds | Purchase plus renovation of an existing property | Building a new structure on land | A short-term hold or transition, no build |
| Best fit project | Cosmetic to moderate rehab, then resell | New construction from plans and permits | Buy before you sell, or hold until refinance |
| How funds are released | Purchase at close, rehab often in draws | Released in draws as build milestones are met | Typically a single advance for the gap |
| Time horizon | Short-term, tied to the flip | Short-term through the build, then sell or refinance | Short-term, tied to the exit |
| Exit | Sell the finished property | Sell or refinance the completed build | Sale or refinance that ends the gap |
| Westpark availability | California and other states, business-purpose | California and other states, business-purpose | California; other states for business-purpose |
If you are buying an existing property to renovate and resell, a fix and flip loan is built for exactly that cycle, funding the purchase and releasing rehab money as the work progresses. If there is no existing structure and you are building new, a ground-up construction loan is the right tool, with funds released in draws against build milestones. If your project does not involve construction at all and you simply need to span a short-term gap, a bridge loan fits. These are business-purpose products available in California and other states. A loan specialist can match the loan to your scope and exit, subject to underwriting approval.
Frequently Asked Questions
Yes. Many programs include staged draw funding for approved rehab budgets.
Closings often occur within 7–14 days depending on file readiness.
Approval focuses primarily on property value and project viability.
Some lenders offer extension options depending on terms.
Yes. Many fix and flip loans include construction draws based on an approved scope of work
First-time investors may qualify depending on credit profile, liquidity, and project strength. Additional reserves or lower leverage may apply.
Choose a fix and flip loan when you are buying an existing property and renovating it to resell, since it funds the purchase and releases rehab money as the work progresses. Choose a ground-up construction loan when there is no existing structure and you are building new from plans and permits, with funds released in draws against build milestones. The dividing line is simple: renovating existing versus building new. A specialist can confirm which fits your project, subject to underwriting approval.
Use a bridge loan when your project does not center on renovation and you mainly need to span a short-term gap, such as holding a property until a sale or refinance closes. Use a fix and flip loan when the value comes from renovating an existing property to resell, because it is structured to fund both the purchase and the rehab work. If there is no significant rehab, a bridge loan is often the simpler tool. Both are business-purpose and subject to underwriting approval.
FIX AND FLIP LOANS EXAMPLE
Daniel found a distressed property in Los Angeles requiring rehab and speed.
Purchase Price: $650,000
Rehab Budget: $180,000
After Repair Value: $950,000
Loan Structure: 85% purchase + 100% rehab
Term: 12 months
Credit Score: 690
Westpark Loans structured staged draws aligned with contractor milestones. The property sold in 7 months for $980,000. Closed in 14 days.
Client Testimonials
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There’s no one-loan-fits-all solution. For more information on our All In One Loans, please contact our licensed Loan Specialists to find the best option for you.
Broker Advantage Statement
Not every fix and flip loan program is the same.As a mortgage broker, Westpark Loans compares lenders to structure the right solution based on your property, leverage needs, and defined exit strategy.