Fix & Flip Loans for Renovation Projects
Tallridge fix & flip loans provide $100K to $3M for residential renovation projects with up to 100% of approved rehab budget (disbursed through draws). 12-month interest-only terms, closing in as fast as 7 days, and up to 90-95% loan-to-cost. Perfect for experienced flippers renovating 1-4 unit properties for retail sale or rental refinance.
Renovate fast. Draws that keep work moving. An exit that pencils.
Key Facts
| Parameter | Typical Range / Details |
|---|---|
| Loan Amount | $100k–$3M |
| Term | 12 months standard; 6–18 months case-by-case; interest-only |
| Rehab Financing | Up to 100% of approved rehab budget (disbursed through draws) |
| Max Leverage | Up to ~90–95% LTC; capped by ~75–80% of ARV |
| Close Speed | As fast as 10 days with complete docs |
| Property Types | Non-owner-occupied 1–4 units; small multifamily case-by-case |
| Use of Proceeds | Acquisition, renovation (materials, labor), soft costs; optional interest reserve |
| Exit | Retail sale or DSCR refinance |
What is a Fix & Flip loan and how does it work?
A Fix & Flip loan is short-term, asset-secured financing for buying, renovating, and selling an investment property. Funds cover the purchase plus a rehab budget. The budget is released in draws as work is completed and verified.
How do draws work?
Funds are disbursed in stages. After a phase is completed, the inspector verifies progress against the scope of work; the lender releases the next draw. This keeps capital aligned with actual construction progress and protects the project's cash flow.
How do ARV and leverage limits affect the loan size?
Maximum debt is sized to the lower of program caps: loan-to-cost (LTC) and a percentage of after-repair value (ARV). Even if LTC allows more, an ARV cap (e.g., ~75–80%) can limit the final loan amount. A realistic comp set and scope are required.
Who qualifies?
Eligible borrowers demonstrate:
- Clear business plan and line-item scope with costs and timetable.
- Adequate equity and reserves to cover carry, change orders, and contingencies.
- Acceptable credit profile; prior flip experience helps but isn't always required.
How Draws Work
Complete Scope
Finish a phase of work according to your approved scope
Inspection
Inspector verifies completed work matches the approved scope
Release Funds
Lender releases next draw to continue renovation work
This cycle repeats throughout your renovation until all work is complete and funds are disbursed
What documents are needed to start?
How fast can this close?
With a complete file and rapid third-party responses, closings can be as fast as 10 days.
Allow additional time for title issues, complex scopes, or appraisal-driven valuations.
Example Scenario
Loan Calculation:
Program offers 90% LTC (purchase + rehab) capped at 75% ARV
- • 90% of total cost ($350,000) = $315,000
- • 75% of ARV ($480,000) = $360,000
- → Loan sizes to the lower limiter: $315,000
Result: Sponsor funds the balance and closes. Renovation completes on schedule; property sells at $475,000, repaying the loan and realizing planned margin after costs.
What are typical costs and fees?
Interest Rate
Interest-only payments during renovation
Origination Points
May be financed if leverage allows
Third-Party Costs
Title, recording, inspections, legal
Prepayment
Uncommon for fix & flip loans
Advantages
Speed to close
Faster than traditional bank financing.
Up to 100% of approved rehab budget
Via draws keeps work moving.
Interest-only payments
Minimizes carry during construction.
Considerations
Short term demands a credible exit plan.
Market risk during rehab/sell window.
Change orders and delays can erode margin.
Frequently Asked Questions
Do you finance 100% of the purchase price?
Can points or fees be rolled into the loan?
Are prepayment penalties typical?
Do you lend on owner-occupied properties?
Ready to Start Your Next Flip?
Get funded fast with up to 100% of your approved rehab budget covered (disbursed through draws). Close in as little as 10 days.
Rates/terms subject to change and underwriting. Not an offer to lend. Equal opportunity lender.