The short answer: To get a fix-and-flip loan, pick the financing type that fits your deal — most investors use a hard money or fix-and-flip loan — then get your profile and paperwork in order (credit, cash for the down payment and reserves, and usually an LLC), find a property and analyze the numbers around its After-Repair Value (ARV), and submit the deal to your lender for a term sheet and approval. The renovation money is typically released in stages as the work gets done.
Flipping a house lives or dies on financing that's fast and structured around the deal rather than your W-2. Below is how the process actually works, the loan options investors use, and what a lender wants to see before saying yes. Market Capital Lending arranges fix-and-flip and hard money financing for investors across metro Atlanta and 46 states — so if you'd rather talk it through than read, reach out.
Common types of fix-and-flip financing
There's no single "flip loan" — investors use a few different tools depending on the deal and their situation.
Hard money / fix-and-flip loans
The workhorse of house flipping. These are short-term loans — usually 6 to 24 months — from private lenders, underwritten primarily on the property's value and after-repair value rather than your personal income. Because they're asset-based and built for speed, they close quickly, which is what wins competitive deals. The trade-off is cost: interest rates typically run in the 9.5%–15% range, reflecting the short term and the risk. (Rates and terms vary by lender, borrower experience, and the deal.)
Home equity loans / HELOCs
If you have significant equity in your primary residence, a home equity loan or HELOC can fund a flip at a lower interest rate than hard money. The catch is serious: you're putting your own home on the line — if the flip goes sideways, your personal property is at risk. It's best reserved for experienced investors who understand exactly what they're taking on.
Cash-out refinance
Replacing an existing mortgage with a larger one and pulling the difference out in cash to fund a new investment property. It can be an inexpensive source of capital if you have equity, though it resets your mortgage and generally takes longer to close than a hard money loan.
Private money & partnerships
Capital from personal connections, peer-to-peer networks, or a real estate partner who puts up funds in exchange for a share of the profit. Flexible and relationship-driven — the terms are whatever you negotiate.
For most investors doing repeatable flips, a dedicated fix-and-flip loan or bridge loan is the cleanest path, because it's built for exactly this and doesn't put your home at risk.
Steps to secure a fix-and-flip loan
1. Check your profile
Before you shop for a property, know where you stand. Most fix-and-flip lenders look for a credit score around 620 or higher, liquid cash for a down payment of roughly 10%–25% of the purchase price, and 4 to 6 months of cash reserves to carry the project. Stronger credit and more experience generally translate into better terms.
2. Form an LLC
Many specialized lenders require you to close the loan under a business entity — an LLC or corporation — rather than in your personal name. It's standard for investment lending, and it separates the project from your personal finances. If you don't have one yet, set it up before you're under contract.
3. Find a property and analyze the deal
This is where flips are won or lost. Nail down your purchase price, a realistic repair budget (your scope of work), and the After-Repair Value (ARV) — what the finished property will sell for — using recent local comparable sales. Lenders size the loan against these numbers, so honest, well-researched figures matter as much to your approval as they do to your profit.
4. Get pre-qualified and request a term sheet
Submit your investment experience, bank statements, the purchase contract, and a detailed scope of work to your lender. They'll review the deal and issue a term sheet laying out the loan amount, rate, points, term, and how much of the rehab they'll fund. This is where working with a broker helps: with a network of lenders, we can shop your file to the one whose terms and draw schedule fit the deal best.
5. Understand the draw process
Fix-and-flip lenders rarely hand over all the renovation money upfront. Instead, they hold the rehab budget and release it in stages, called draws, as work is completed and inspected. Plan your cash flow around it: you or your contractor often front a stage of work, then get reimbursed once it passes inspection. Knowing this going in keeps a project from stalling mid-rehab.
How Market Capital Lending helps
We arrange fix-and-flip and hard money financing for investors — asset-based, built for speed, and structured around the deal and its ARV rather than pages of income documents. With a network of 40–50 lenders, 40+ years of experience, and $375M+ funded, we can match first-time and experienced flippers to the right program and keep the closing — and the draws — on track. Explore our fix-and-flip loans and hard money loans, see fix-and-flip loans in Atlanta, or start your application. (Rates, approval, and terms vary by credit, collateral, experience, loan amount, and underwriting.)
Frequently asked questions
What credit score do I need for a fix-and-flip loan?
Most lenders look for around 620 or higher, but because these loans are asset-based, the property and your experience carry a lot of weight. Stronger credit generally means better rates and terms.
How much money do I need to put down on a flip?
Plan for roughly 10%–25% of the purchase price as a down payment, plus 4 to 6 months of cash reserves to carry the project. The exact figure depends on the lender, your experience, and the deal.
What is ARV, and why does it matter?
ARV is the After-Repair Value — what the property will be worth once renovations are done, based on local comparable sales. Fix-and-flip lenders size the loan against ARV, so a realistic ARV is central to both your approval and your profit.
Do I need an LLC to get a fix-and-flip loan?
Often, yes. Many specialized lenders require you to close under a business entity like an LLC rather than your personal name. It's a standard part of investment lending.
How do renovation funds get paid out?
Through a draw process: the lender holds the rehab budget and releases it in stages as work is completed and inspected, rather than all at once. Budget your cash flow to front each stage before reimbursement.
How fast can a fix-and-flip loan close?
Much faster than conventional financing — hard money and fix-and-flip loans are built for speed. The exact timeline depends on the lender and how complete your file is when you apply.