By Sagi GliksmanFix and Flip2 min readUpdated
Fix and Flip Financing: LTC, ARV and How to Get 100% Rehab
How fix-and-flip loans work: LTC vs ARV, rehab draws, qualifying on a first flip and a worked example at 90% of purchase and 100% of rehab.
Key takeaways
- A fix-and-flip loan funds the purchase and the rehab in one short-term loan.
- Borrow up to 90% of the purchase (100% for experienced investors) and up to 100% of rehab, total capped at 75% of ARV.*
- Rehab funds release in draws. Each draw funds within 48 hours of inspection sign-off.
- Most flips exit by sale, or by refinance into a DSCR rental loan (BRRRR).
A fix-and-flip loan is short-term, asset-based financing for the purchase and the rehab budget in one loan.
Your cash in can be as little as 10-15% of the purchase price, plus closing costs.
The two numbers that matter: LTC and ARV
Loan-to-cost (LTC) is the share of your costs the lender funds. After-repair value (ARV) is what the property is worth once the work is done.
Our lenders fund up to 90% of the purchase price (100% for experienced investors) and up to 100% of the rehab budget.
The total loan is capped at 75% of ARV, subject to underwriting.
Worked example
- Purchase price: $200,000
- Rehab budget: $60,000
- After-repair value (ARV): $360,000
- 90% of purchase = $180,000
- 100% of rehab = $60,000
- Total loan = $240,000
- 75% ARV cap = $270,000, so the full $240,000 fits
- Your cash to close: $20,000 + closing costs
How rehab draws work
The rehab budget is not paid upfront. It funds in draws as work is completed.
You request a draw and a third-party inspector verifies the work. The draw funds within 48 hours of inspection sign-off.
Map your draws to your scope of work to keep cash flowing: demolition, framing, plumbing and electrical, drywall, finishes.
Fix-and-flip loan terms (as of November 2026)*
- Loan size: $50K-$3M
- Purchase: up to 90% (up to 100% LTC for experienced investors)
- Rehab: up to 100%, funded in draws
- Total loan: up to 75% of ARV
- Term: 6-24 months
- Same-day term sheet, no hard credit pull
- * Subject to underwriting
Qualifying as a first-time flipper
First-time flippers welcome with a solid budget and contractor.
Lenders price experience. A first flip gets around 85% of purchase instead of 90%, and a slightly higher rate. What you need:
- Credit that fits the deal, weighed together with your leverage, experience and the project
- Cash for 10-15% of purchase, plus closing costs and reserves
- A solid budget and scope of work with realistic numbers
- A licensed contractor where your market requires permits
Exit strategies
Two exits dominate: sell at completion, or refinance into a long-term DSCR loan and keep the property as a rental (the BRRRR strategy).
Pick a fix-and-flip loan with no prepayment penalty. Then you exit the day the project is done.
Rate, leverage and draw schedule, the same day. No hard credit pull.
See fix-and-flip termsFrequently asked questions
How much of the rehab is financed?
Up to 100% of the rehab budget, released in draws as work is completed and inspected.
Each draw funds within 48 hours of inspection sign-off.
What if it's my first flip?
First-time flippers welcome with a solid budget and contractor.
Expect around 85% of the purchase price instead of 90%, and a slightly higher rate.
How long is a fix-and-flip loan?
6-24 months, interest-only. Sell or refinance as soon as the project is done.