What is a fix-and-flip loan (quick overview)

A fix-and-flip loan is a short-term loan designed to finance both the purchase of an investment property and the renovations needed to sell it for a profit. These loans are typically structured for short holding periods, with flexible repayment terms and draw schedules that match renovation milestones. They are different from conventional mortgages in purpose, speed, and underwriting focus.

Why speed matters in fix-and-flip financing

Real estate opportunities move fast. Sellers often accept offers contingent on quick close windows, and favorable properties can disappear within days. Fast financing lets you:

• Win competitive purchase offers
• Begin renovations sooner to minimize carrying costs
• Lock in contractors and materials at better prices
• Reduce risk of market changes while holding the property

Types of fix-and-flip financing (brief)

There are various product types. For speed, look for short-term rehab loans that:

• Cover purchase and renovation costs under one loan
• Offer fast approval and flexible terms
• Provide draw schedules so funds are released as work is completed

Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.

Common eligibility requirements to expect

While requirements vary by lender, typical criteria for fix-and-flip loans include:

• A minimum credit score of 620
• Property must be non-owner-occupied
• A solid investment plan with renovation budget details
• Experience in real estate preferred but not required
• Minimum loan amount of $100,000
• Proof of financial stability and ability to repay
• No bankruptcy filings within the past two years

Because underwriting focuses on the project’s viability (purchase price, rehab budget, and after-repair value or ARV), preparing those materials speeds approval significantly.

How fast can you realistically get approved?

Approval times vary depending on lender, completeness of your package, and property complexity. Many applicants receive loan approval within 7–10 business days when their documentation is complete and the scope of work is clear. If you need to move faster, target lenders and programs that specialize in quick rehab financing.

Documents and materials to prepare before you apply

Having a complete, well-organized package is the single best way to speed approval. Prepare the following in advance:

• Signed purchase contract or purchase offer
• Detailed renovation scope of work (line-item budget)
• Contractor bids or estimates
• Project timeline and anticipated completion date
• Comparable sales (recent comps) to support ARV
• Proof of funds for down payment or reserves (bank statements)
• Credit report authorization (many lenders pull credit)
• Entity documentation if using an LLC (articles of organization, EIN)
• Personal ID (driver’s license, passport)

Organizing these files as PDFs and labeling them clearly will make every step faster.

Step-by-step fast-approval strategy

1. Pre-qualify quickly. Ask for a pre-qualification or soft approval to confirm basic eligibility without a full documentation push. This identifies any gaps early.
2. Submit a complete packet. Provide purchase contract, rehab scope, contractor bids, comps, proof of funds, and ID in one submission to avoid multiple back-and-forths.
3. Use a detailed rehab budget and schedule. Lenders look for realistic line-item budgets and milestone-based timelines. Include contingency line items (usually 5–10%) to show you planned for surprises.
4. Choose a clear exit strategy. Whether it’s resale upon completion or refinancing into long-term debt, a credible exit reduces perceived risk and speeds approval.
5. Be responsive. Answer questions and supply requested documents quickly. Delays on your end lengthen underwriting time.
6. Coordinate inspections. Schedule appraisal and property inspections as soon as possible. Many lenders require an appraisal based on ARV and may require on-site job inspections for draws.
7. Plan for draws. Clarify how funds will be disbursed against completed milestones. Lenders that offer draw financing often require inspection sign-offs before each release.

What underwriters are looking for (so you can preempt questions)

Understanding the lender’s priorities helps you shape your application. Underwriters typically focus on:

• Property strength: Will the location and condition support the projected ARV?
• Renovation realism: Are bids from licensed contractors realistic and detailed?
• Borrower reliability: Do your financial statements and credit profile show repayment ability?
• Exit clarity: Is there a clear, well-supported plan to repay the loan (sale or refinance)?

Address these topics proactively in your submission to reduce questions and speed approval.

Typical timeline from application to funding

While every case differs, a practical accelerated timeline might look like this when you’re prepared:

1. Day 0: Application submitted with complete package.
2. Days 1–2: Prequalification and initial file review; lender requests any missing documentation.
3. Days 3–5: Appraisal order and review of contractor bids and comps.
4. Days 6–8: Underwriting and conditional approval pending title and final documents.
5. Days 9–10: Closing and funding (may be faster with e-signing and digital title workflows).

Approval times vary, but many applicants receive loan approval within 7–10 business days when files are complete and property issues are straightforward.

Draw schedules and renovation disbursements

Fix-and-flip loans that fund renovations typically use draws — staged releases tied to completed work. A common draw pattern:

• Initial draw at closing to cover purchase and early costs
• Subsequent draws at 25%, 50%, and 75% completion milestones
• Final draw after completion and final inspection

Expect the lender to require inspections or invoices before each draw. Organize contractor invoices and photos to avoid delays.

Structuring the loan and the deal to move faster

Consider these structure choices to improve speed and approval chances:

• Present a conservative ARV supported by local comps
• Provide contractor contracts rather than rough estimates
• Show reserves or contingency funds to cover overruns
• Use an entity (LLC) for closing if you already have one established; provide all entity docs up front
• If available, offer a larger down payment to reduce perceived lender risk

Exit strategies — what lenders want to see

Lenders prefer clear, practical exits. Common strategies include:

• Sell on the open market after renovation
• Refinance into long-term mortgage after stabilization
• Lease-out with option to sell (rare for rapid flips)

Provide projected sales price, marketing plan, and timelines that align with the loan term. Many fix-and-flip loans are structured for 6–18 months to match project cycles; include a plan for extensions if needed.

Managing risk during the rehab

Protect your investment and relationship with the lender by doing the following:

• Hire licensed, insured contractors and get written contracts
• Maintain a change-order log for any scope changes
• Keep thorough records: invoices, permits, inspection sign-offs, and photos
• Communicate proactively with the lender if timelines slip
• Keep contingency funds accessible for unexpected repairs

Permits, inspections and compliance

Delays for permits and inspections are common. Plan permit pulls early in the project timeline and factor in local turnaround times. In many markets, lenders will require copies of permits and final inspection documents before final draws.

Common mistakes that slow approvals (and how to avoid them)

• Incomplete documentation: Submit a full package at once to avoid back-and-forth delays.
• Vague budgets: Use line-item budgets with contractor quotes.
• Unclear exit plan: Provide a realistic sales strategy and timeline.
• Poor contractor selection: Use contractors with verifiable references and insurance.
• Unprepared title issues: Resolve liens or ownership discrepancies before closing.

Checklist: Ready-to-apply package for fast funding

Use this checklist before hitting submit:

• Signed purchase contract with contingencies defined
• Detailed line-item renovation budget and schedule
• Contractor bids and agreements with timelines
• Comparable sales supporting ARV
• Proof of funds/reserves
• Identification and entity documents (if applicable)
• Clear title / no unresolved liens
• Exit strategy documentation (marketing or refinance plan)

How to choose a lending partner for speed

When speed is a priority, evaluate lenders on these points:

• Turnaround times for approval and funding
• Experience with rehab financing and draw management
• Willingness to work with investor entities (LLCs)
• Clarity of requirements and responsiveness during underwriting
• Flexibility on loan terms and extension options

Ask prospective lenders about their average approval time for completed packages and the specifics of their draw process so you can plan accordingly.

Final steps: closing and post-closing best practices

At closing, confirm the following to prevent delays in the renovation phase:

• Initial draw amount and timing for first disbursement
• Names and contact details for draw inspector or lender rep
• Permitting responsibilities and documentation expectations
• Exact terms for extensions and fees for missed deadlines, if any

After closing, maintain a regular communication cadence with the lender and retain organized records for each draw request.

Ready to move fast? Start here.

If you have a property under contract and want to get financing quickly, prepare the checklist above and reach out for a tailored quote. Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.

Get started with a personalized fix & flip financing quote

Frequently Asked Questions (FAQs)