How to Speed Up Your Fix and Flip Loan Approval
Getting fast financing for a fix and flip project can be the difference between winning a deal and missing it. This guide walks you through everything you can do—before and during the application—to speed up approval and close sooner. The steps are practical, written in simple language, and focused on things you can control.
Quick overview: what affects approval speed
Approval time for a fix and flip loan depends on five main areas:
- How complete and accurate your application is
- Quality of your renovation plan and contractor estimates
- Borrower credit history and documentation
- Property condition, title and appraisal results
- Underwriter workload and lender processes
With the right preparation, many borrowers receive approval within about 7–10 business days. Use the steps below to get to that timeline or better.
Before you apply: prepare a pro-level package
Lenders move fastest when your file is complete and clearly organized. Spend time upfront gathering and polishing these items so the lender can underwrite quickly.
1. Borrower documents checklist
Have digital copies ready (PDF preferred) of:
- Valid government ID (driver’s license, passport)
- Most recent bank statements (usually 2–3 months)
- Proof of reserves or access to funds for down payment and contingencies
- Signed purchase contract (if you already have a property)
- Business documentation (if applying through an LLC): formation documents, operating agreement, EIN
- Recent tax returns and/or profit & loss statements if you have rental or rehab income
- Letters of explanation for any recent credit events (late payments, collections)
2. Project plan and budget
Present a clear, realistic plan. A lender will speed things up when they can quickly understand scope, costs and exit strategy.
- Scope of work: room-by-room or trade-by-trade list (demo, roof, electrical, plumbing, HVAC, finishes)
- Detailed budget: line items and contingency (10–20% recommended)
- Projected after-repair value (ARV) with 3–5 comparable sales
- Timeline: start date, major milestones, projected completion and sale
3. Contractor bids and licenses
Obtain written bids from contractors and subcontractors. Lenders prefer licensed and insured contractors with a track record. A single, clear bid that matches your budget line items helps underwriters move faster.
Speed items during application and underwriting
1. Use a single point of contact
Assign one person to communicate with the lender—this reduces back-and-forth and prevents lost information. Whether it’s you, your partner, or a project manager, that person should know where all documents are stored and be authorized to sign where necessary.
2. Be proactive with title and inspections
Order a preliminary title report early (or have the lender do it immediately). Any title issues found (liens, judgments) can add days or weeks if not addressed quickly. If the property condition is borderline, consider a pre-inspection to identify major issues that could slow appraisal or underwriting.
3. Speed up appraisal and comps
Provide a short list of comparable sales that support your ARV. If you know the local market, include recent sales with pictures and sale prices. Some lenders allow desktop or drive-by appraisals that are faster. Ask about appraisal options when you apply.
4. Keep communication transparent and timely
When the lender asks for a document or clarification, respond immediately. Each hour of delay can add days to the timeline. If you expect a delay, tell the lender up front and provide an estimated time to deliver the missing item.
Credit and financial moves that speed approval
Small changes in how you present credit and finances can reduce questions and speed up underwriting.
1. Fix obvious credit report errors
Pull your credit report early. If there are mistakes—wrong addresses, closed accounts listed as open, mistaken collections—dispute them and keep proof of the dispute process. Correcting straightforward errors can eliminate unnecessary review steps.
2. Reduce utilization on revolving accounts
Pay down credit card balances to lower utilization. Lenders look at current balances more than the credit limit. Reducing balances a few days before the lender rechecks can improve your profile.
3. Avoid new credit inquiries
Do not open new accounts or take on new debts during the application process. New credit pulls or new monthly payments can trigger extra verification steps.
4. Provide clear explanations
Include concise, honest letters explaining any late payments, short sales, or past bankruptcies. A short context letter and documents showing recovery (current payments on time, reserves) can remove questions that slow approval.
Operational tips that shave days off closing
1. Have contractor insurance and permits lined up
Confirm contractors carry the required insurance and have permits ready or a plan to obtain them. Permitting delays are common; providing a permit plan and an experienced contractor will reassure the lender.
2. Use digital signatures and e-documents
Choose providers who accept e-signatures and digital document uploads. Printing, mailing, and wet signatures add time. A lender who accepts digital signings and uploads can move faster.
3. Fund draw schedule in advance
Prepare a draw schedule tied to clear milestones (demo complete, rough-ins complete, finishes complete). Lenders that see a clear, staged draw schedule require fewer clarifications when approving funds.
4. Consider a local closer and title company
A title company and closer familiar with rehab loans will know the right documents and timing, reducing back-and-forth and unexpected requirements at closing.
Common reasons loans stall — and how to avoid them
Knowing common pitfalls helps you prevent them.
- Incomplete documentation: Avoid by using the checklist above and double-checking before submission.
- Unclear contractor scope: Use detailed bids tied to your budget.
- Title or lien issues: Order a preliminary title search early and resolve liens before closing.
- Appraisal comes in low: Provide comparables, repair estimates, and evidence of comparable market activity.
- Surprise financial obligations: Disclose any known judgments or child support issues up front.
Typical timeline — realistic expectations
Every loan and lender is different, but here’s a practical timeline for a well-prepared file:
- Day 0–2: Pre-qualification and initial document request
- Day 3–7: Submission of full package and order of appraisal/title
- Day 7–10: Underwriting review (can be shorter with a clean file)
- Day 10–15: Clear-to-close if no major issues arise
- Day 15–20: Closing and funding
With a fast lender and a complete file, many borrowers see approval in about 7–10 business days. If issues appear, plan for more time and stay communicative to minimize delays.
Checklist: what to have ready today
- Valid ID and recent bank statements uploaded to a single folder
- Signed purchase contract (if available)
- Project scope, contractor bids, and budget with contingency
- Preliminary title search (or instructions to the lender to order one immediately)
- Comparable sales supporting your ARV
- Digital-ready signatures and authorized contact person
Practical email template to speed communication
Use this short email when responding to lender requests—clear, complete replies reduce follow-ups:
Subject: Requested Documents for [Property Address] - [Your Name] Hi [Loan Officer Name], Attached are the documents requested for the fix & flip application: - Photo ID - Bank statements (last 2 months) - Purchase agreement - Contractor bids (itemized) - Project budget and timeline - Comparable sales supporting ARV Please let me know if you need any clarifications. I can provide additional details within 24 hours. Thanks, [Your Name] [Phone]
When to use a broker or loan specialist
A broker or a loan specialist with fix-and-flip experience can often speed the process by anticipating underwriter questions and submitting a cleaner package. If you’re new to rehab financing or dealing with a complex property, using an experienced specialist may save time overall even with an extra intermediary.
What to expect after approval
Once approved you’ll move to closing and then funding. For rehab loans, funds are often disbursed in draws tied to inspections or invoices. Prepare your contractor to invoice promptly and coordinate inspections so draws aren’t delayed.
Rates and loan terms
Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.
Ready to move faster?
If you want help getting a personalized quote or to start an application quickly, use this link to request more information and begin the process right away: https://trussfinancialgroup.com/loans/fix-flip-loans?fpr=jessee94
FAQs
How fast can I get approved for a Fix & Flip loan?
Approval times vary, but many clients receive approval within 7–10 business days when the application is complete and documentation is ready. Faster timelines are possible for clean, well-documented files.
What’s the interest rate for Fix & Flip loans?
Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.
Can I finance both the purchase and the renovation costs?
Yes. Many fix & flip loans are structured to cover both property purchase and renovation expenses under a single loan, simplifying financing and cash flow during the project.
How long is the loan term?
Typical fix & flip loan terms range from 6 to 18 months, providing time to complete renovations and sell the property. Extension options are often available if you need more time—contact the lender before the term expires to discuss options.
What is the minimum credit score required?
Minimum credit score requirements can vary, but a commonly cited threshold is around 620 for many rehab loan programs. Other factors like reserves, experience and property feasibility also matter.
Is experience in real estate required?
Experience is preferred by many lenders, but it is not always required. A strong project plan, reliable contractor bids, and adequate reserves can help a first-time flipper get approved.
What loan amounts are typical?
Minimum loan amounts vary by program, but some rehab loan programs start around $100,000. Check the specific program details when applying.
Do recent bankruptcies disqualify me?
Recent bankruptcies can affect eligibility. Many programs require no bankruptcy filings within the past two years, but guidelines vary—provide documentation and be prepared to explain the circumstances.
What happens if I don’t sell the property within the loan term?
If you need more time, extension options may be available. Contact your lender in advance to discuss extension terms and to avoid penalties or forced sale scenarios.
How do draws and inspections work?
Rehab loans typically disburse funds in draws tied to completed milestones (e.g., demo, rough-ins, finishes). Lenders may require inspections or invoices before releasing each draw. Plan your contractor’s schedule and invoicing to align with these milestones.
Who should I contact for a personalized quote?
To request a personalized quote or to start an application, use this link to open a request and receive next steps: https://trussfinancialgroup.com/loans/fix-flip-loans?fpr=jessee94
If you follow the checklists and tips in this article—get your documents in order, provide a clear project plan, and stay responsive—you’ll put yourself in the best position to speed up approval and get your rehab project started quickly.