How to Qualify for a Fix and Flip Loan
If you're wondering how to qualify for a fix and flip loan, the good news is that the process looks very different from applying for a traditional mortgage. Fix-and-flip lenders care less about your tax returns and more about whether the deal in front of you actually makes sense.
Why fix-and-flip loans are underwritten differently
Banks lend against your personal financial history. Fix-and-flip lenders lend against the property and the plan. A private lender's underwriting team is really asking one question: if this project goes sideways, does the property and the plan around it still protect their capital? Everything below flows from that question.
The deal economics: purchase price, rehab budget, and ARV
The single biggest factor in fix-and-flip underwriting is the math of the deal itself: purchase price, rehab budget, and after-repair value (ARV). Most hard money lenders lend as a percentage of ARV rather than purchase price alone — the Fix & Flip program available through BldFi offers financing up to 75% of ARV, with loan amounts from $100,000 to $3 million.
The tighter the spread between your total cost and the ARV, the less margin there is to absorb surprises, and the more scrutiny a lender will apply.
Why ARV has to be defensible
Lenders won't take your ARV estimate at face value — they'll want it backed by recent, comparable sales in the same neighborhood, similar in square footage, bed/bath count, and finish level.
Your experience level as an investor
A first flip doesn't automatically disqualify you — what changes is how the file gets structured. First-time flippers can often still qualify, especially with a strong deal, adequate reserves, and sometimes a GC or project manager with a documented track record involved. Seasoned investors typically move through underwriting faster and may see more flexibility on leverage. A well-documented scope of work and a realistic budget can go a long way toward offsetting a thin track record.
Renovation scope of work and budget
A vague plan is one of the fastest ways to slow down or sink a fix-and-flip application. Lenders want to see a clear, itemized scope of work — room by room or trade by trade — with realistic costs attached, ideally sourced from contractor bids, plus contingency built in for the unexpected. Because fix-and-flip loans are typically disbursed in draws tied to completed work, a clear scope also makes the draw process smoother once construction is underway.
Exit strategy: sell, refinance, or hold
Every fix-and-flip lender wants to understand how they get repaid. The two most common paths are selling the property after renovation, or refinancing into a long-term or DSCR-style rental loan and holding it. Neither is inherently better in a lender's eyes — what matters is that you have one, that it's realistic for the local market, and that your timeline lines up with the loan term.
Proof of funds and reserves
Because fix-and-flip loans typically fund a percentage of ARV rather than 100% of costs, you'll need to cover the remaining down payment yourself, plus a cushion for carrying costs — insurance, utilities, property taxes, and loan payments — while renovation is underway. Lenders will generally ask for proof of funds covering your down payment, several months of carrying-cost reserves, and a buffer for renovation contingency.
Documents you'll typically need
- Purchase contract for the property (or current ownership documents for a refinance)
- Renovation scope of work and itemized budget
- Comps supporting your ARV estimate
- Proof of funds for your down payment and reserves
- Entity documents (LLC operating agreement, EIN, certificate of formation) if purchasing through a business entity
- Personal identification and basic background information for the guarantor(s)
- Contractor information or bids, if available
Pre-application checklist.
- Purchase price, rehab budget, and ARV are all documented and the loan-to-ARV math pencils out
- Comps support your ARV estimate and reflect similar properties nearby
- A detailed, itemized scope of work is written out, with a contingency line
- Your exit strategy (sell or refinance/hold) is decided and realistic for your timeline
- Proof of funds is ready for your down payment and reserves
- Carrying costs are budgeted for the full expected renovation timeline
- Entity documents are in order if buying through an LLC
- Purchase contract or property documents are signed and available
Get your fix-and-flip deal funded
Qualifying for a fix-and-flip loan comes down to presenting a solid deal, a realistic plan, and the reserves to see it through — not a perfect credit score. Fix & Flip financing through BldFi offers loan amounts from $100,000 to $3 million, up to 75% of ARV, with rates starting at 11.0% and deal reviews typically completed in 24–48 hours.
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