Introduction
If you’re planning to renovate and sell a property for profit, one of the first questions you’ll ask is: How much can I borrow with a fix and flip loan?
The answer depends on several factors, including the property itself, your credit profile, and your renovation budget. Fix and flip loans are designed to give real estate investors quick access to capital for both purchasing the property and funding improvements, making them a powerful tool for flipping houses, duplexes, and even multi-family homes.
This guide will break down how lenders determine borrowing amounts, what investors typically qualify for, and strategies to maximize your approval potential.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term financing option tailored for real estate investors who purchase properties, renovate them, and resell them at a higher price. Unlike traditional mortgages, these loans are:
- Faster to approve – Closing in as little as 7–10 business days.
- More flexible – Customized repayment terms to match project timelines.
- Comprehensive – Covering both the purchase price and renovation budget in one loan.
💡 Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.
👉 Apply for a Fix and Flip Loan Here
How Much Can You Borrow With a Fix and Flip Loan?
The amount you can borrow depends on several key factors:
1. Loan-to-Value Ratio (LTV)
Most fix and flip loans are based on the purchase price or the after-repair value (ARV) of the property. Investors can typically borrow a percentage of one of these numbers, leaving room for both acquisition and renovations.
2. After-Repair Value (ARV)
Many lenders calculate loan amounts using the ARV—the estimated value of the property after renovations. The higher your projected ARV, the more you can potentially borrow.
3. Experience Level
Investors with prior fix and flip experience may qualify for higher loan amounts because they have a proven track record of completing profitable projects.
4. Credit Score & Financial Stability
While perfect credit isn’t required, a minimum credit score of 620 is typically needed. Lenders will also look for proof that you can manage the loan responsibly.
5. Property Type & Condition
- Single-family homes are often the easiest to finance.
- Duplexes and multi-family properties may allow higher loan amounts due to their resale or rental potential.
- Properties requiring extensive structural work may need more documentation.
Typical Borrowing Ranges
While exact amounts vary by project, here’s a general idea of what fix and flip investors can expect:
- Minimum Loan Amount: $100,000
- Small Projects: $100,000 – $250,000 (common for starter flips or single-family homes in affordable markets)
- Mid-Sized Projects: $250,000 – $500,000 (typical for larger single-family homes or duplexes in suburban markets)
- Large Projects: $500,000+ (multi-family properties, luxury flips, or homes in high-cost markets)
The actual loan amount approved will be determined after reviewing your investment plan, renovation budget, and property details.
Eligibility Requirements
To qualify for a fix and flip loan, most investors need to meet these criteria:
- Credit Score: Minimum of 620
- Property Use: Non-owner-occupied (must be for investment purposes)
- Investment Plan: Detailed renovation budget and timeline
- Experience: Real estate experience preferred but not mandatory
- Minimum Loan Amount: $100,000
- Financial Stability: Proof you can manage the loan and project costs
- Bankruptcy History: No bankruptcy filings within the past two years
Timeline for Loan Approval
One of the major benefits of fix and flip loans is speed. While traditional financing can take 30–60 days, fix and flip loans typically close in 7–10 business days. This fast turnaround allows investors to secure properties quickly in competitive markets.
Can You Borrow for Both Purchase and Renovations?
Yes! One of the biggest advantages of a fix and flip loan is that it covers both:
- Property Purchase Price – The cost of acquiring the property.
- Renovation Budget – Funds allocated for improvements such as remodeling kitchens, bathrooms, flooring, and landscaping.
This eliminates the need for multiple financing sources, simplifying the project from start to finish.
Loan Terms
Most fix and flip loans are short-term, with repayment periods ranging from 6 to 18 months. This aligns with the typical renovation and resale timeline for property flips.
If your project takes longer than expected, extension options may be available. It’s best to discuss these in advance to avoid penalties.
Example Scenario
Imagine you find a property listed for $200,000 with an ARV of $320,000 after $60,000 in renovations. With a fix and flip loan, you could potentially finance both the purchase and renovation costs. Once the property is renovated and sold, your profit margin comes after repaying the loan and closing costs.
Why Fix and Flip Loans Are a Smart Choice
- ✅ Fast access to capital so you don’t miss out on great deals.
- ✅ Covers all project costs under one loan.
- ✅ Flexibility for both new and experienced investors.
- ✅ High approval rates compared to traditional financing.
👉 Ready to see how much you can borrow? Get Pre-Approved for a Fix and Flip Loan Today.
Final Thoughts
The amount you can borrow with a fix and flip loan depends on your credit profile, property details, and investment strategy. With loan amounts starting at $100,000 and the ability to fund both purchase and renovations, fix and flip loans are one of the most effective financing tools for real estate investors.
By preparing a solid renovation plan and choosing the right property, you’ll maximize your borrowing power and set yourself up for a profitable exit.