When it comes to real estate investing, especially in short-term projects like flipping houses, choosing the right financing can make or break your deal. Two of the most popular funding options for investors are fix and flip loans and hard money loans. While these terms are sometimes used interchangeably, they are not exactly the same—and understanding the differences can help you secure the right loan for your project.
In this guide, we’ll break down fix and flip loans vs hard money loans, highlight their similarities and differences, and help you decide which financing option is best for your next investment.
👉 Apply now for a fix and flip loan with flexible requirements: Fix & Flip Loan Application
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term real estate loan designed specifically for investors who plan to buy a property, renovate it, and sell it quickly for profit. These loans cover both the purchase price of the property and the renovation costs, making them an all-in-one solution for house flippers.
Key Benefits of Fix and Flip Loans:
- Fast approval – Most investors receive loan approval in 7–10 business days.
- Flexible terms – Loan structures can be tailored to fit your renovation timeline.
- Covers purchase + renovations – One loan finances both the acquisition and rehab work.
- Extension options – If your property takes longer to sell, you can extend the term.
Eligibility Requirements (2025)
- Minimum credit score: 620
- Property must be non-owner-occupied
- Detailed renovation budget required
- Real estate experience preferred, but not mandatory
- Minimum loan amount: $100,000
- No bankruptcy filings within the past two years
- Proof of financial stability and ability to repay
What Is a Hard Money Loan?
A hard money loan is also a short-term loan, but it is generally asset-based. This means that approval is focused more on the value of the property being used as collateral than the borrower’s credit score or financial history. Hard money loans are often used for fix and flip projects, land purchases, or even construction deals.
Key Benefits of Hard Money Loans:
- Collateral-focused approval – Loan decisions are based primarily on property value.
- Quick funding – Can often be approved and funded faster than traditional loans.
- Flexible qualification standards – Easier to qualify if your credit isn’t perfect.
Fix and Flip Loans vs Hard Money Loans: What’s the Difference?
While both loan types serve real estate investors, there are important distinctions:
| Feature | Fix and Flip Loan | Hard Money Loan |
|---|---|---|
| Purpose | Specifically designed for buying, renovating, and selling a property | General-purpose, short-term real estate financing |
| Covers Renovations? | ✅ Yes – purchase + rehab expenses | ❌ Not always – sometimes only property acquisition |
| Approval Factors | Credit score, experience, investment plan, and property value | Primarily the property value used as collateral |
| Typical Borrower | House flippers with a clear renovation strategy | Investors who need fast, collateral-based funding |
| Loan Term | 6–18 months (with extension options) | Usually 6–12 months |
| Flexibility | Tailored repayment and project-based terms | More rigid; repayment based on property as security |
👉 If you’re flipping houses, a fix and flip loan is often the smarter choice since it’s structured around your project needs.
Why Investors Prefer Fix and Flip Loans in 2025
Fix and flip loans are becoming increasingly popular because they’re designed with investors in mind. Instead of piecing together separate financing for purchase and renovation, you can streamline the process under one loan.
Additional reasons to consider a fix and flip loan:
- You keep more working capital for unexpected expenses.
- Loan structures allow flexibility in repayment.
- Approval rates are higher compared to traditional mortgage options.
- You can leverage experience (even limited) to secure better terms.
At Truss Financial Group, approval rates are strong—81% of applicants in 2024 were approved, far above industry averages.
How to Get Approved for a Fix and Flip Loan
Getting approved is easier than many investors expect. Here’s how to prepare:
- Check Your Credit Score – A 620 minimum score is required.
- Prepare a Renovation Plan – Include a timeline, contractor details, and budget.
- Show Financial Stability – Even though no documents are required upfront, having proof of assets strengthens your application.
- Select the Right Property – Lenders look for solid after-repair value (ARV) potential.
- Apply Online – Fast digital applications mean no commitment, no impact on credit score, and approval within 7–10 business days.
👉 Start your application here: Apply for a Fix & Flip Loan Today
Rates and Terms
Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.
Final Thoughts
Both fix and flip loans and hard money loans can give real estate investors the leverage they need to scale their business. However, if your goal is to purchase, renovate, and sell a property within a short timeframe, fix and flip loans provide a more tailored solution.
They offer:
- Flexible terms
- Fast approval
- Financing for both purchase and renovation
- Higher approval chances
Don’t let financing slow down your investment goals in 2025. With the right loan, you can move quickly on opportunities and maximize profits.
👉 Ready to get started? Apply now: Fix & Flip Loan Application