On this page
- Fix and flip real estate, explained
- What is a fix and flip loan?
- How fix and flip loans are structured, by lender
- Loan-to-cost vs ARV: how much you can borrow
- What a fix and flip loan costs
- A fix and flip deal, walked through
- Flip it or keep it
- Questions to ask a fix and flip lender
- The 70% rule
- Credit and experience
- Risks to plan for
- Related guides
- Frequently asked questions
Based on each lender's published information; we did not apply for loans.
Fix and flip real estate, explained
Fix and flip means buying a property that needs work, renovating it, and selling it for more than everything it cost: purchase, rehab, buying and selling costs, holding costs and financing. The profit comes from the value the renovation adds, so the whole deal rests on three estimates: the after-repair value (ARV), the rehab budget and how long the project takes.
What is a fix and flip loan?
A fix-and-flip loan is a short-term, interest-only loan that funds the purchase and the renovation. The lender advances part of the purchase price at closing and pays the rehab budget in draws as work is completed and inspected. It is sized on the property, not your income: Kiavi lists "No Income Verification" on its fix-and-flip page. These loans are a kind of hard money loan.
How fix and flip loans are structured, by lender
| Lender | Purchase | Rehab | Max loan-to-cost | Max of ARV | Term | Starting rate |
|---|---|---|---|---|---|---|
| Kiavi | Up to 100% | 100% | Up to 100% | Up to 80% | 12, 18 or 24 months | As low as 8.25% |
| Lima One Capital | Not stated separately | 100% (24-hour draws) | Up to 95% | 75% LTV | 13, 19 or 24 months | As low as 7.75% |
| Easy Street Capital | 90% | 100% (48-hour draws) | Up to 93% | Up to 75% | 6 to 18 months | Starting at 8.90% |
| Ternus | Up to 100% | Up to 100% | Set by experience tier | 75% | 12 months | From 9.5% |
| RCN Capital | Up to 100% | 100% | Not stated | 75% | 12 to 18 months | As low as 9.49% |
| New Silver | Not stated | Not stated | Up to 90% | Up to 75% | Up to 18 months | 8.5% to 11% |
| LendingOne | Not stated | 100% | Up to 92.5% | Not stated | 12 months, interest only | Not stated |
| CoreVest | Not stated | Not stated | Up to 93.5% (1 to 4 units) | Not stated | 6 to 24 months | Not stated |
From each lender's own website, read October 29, 2026. "Not stated" means the pages we read do not say. Terms change; confirm with the lender. Not financial advice.
Lima One states "75% LTV" without saying whether that is the as-is or after-repair value. Kiavi's FAQ gives up to 95% of cost against the 100% in its headline. Express Capital Financing lends up to 90% of the acquisition and 100% of renovation cost. For points, fees, closing speed and state coverage across all 15 national lenders, see fix-and-flip loans compared.
Loan-to-cost vs ARV: how much you can borrow
Lenders cap the loan two or three ways and lend the smallest: a share of the purchase plus a share of the rehab, a share of total cost (loan-to-cost), and a share of the after-repair value. Example: a $200,000 purchase with a $50,000 rehab and a $330,000 ARV, using each lender's published maximums.
| Lender (published caps) | Loan | Cap that sets it | Your cash before costs |
|---|---|---|---|
| Kiavi | $250,000 | purchase and rehab | $0 |
| Ternus | $247,500 | ARV cap | $2,500 |
| Easy Street Capital | $230,000 | purchase and rehab | $20,000 |
| New Silver | $225,000 | loan-to-cost | $25,000 |
Kiavi's 80% ARV cap leaves room for its full 100% of cost here, though Kiavi's FAQ gives up to 95% of cost, which would make this loan $237,500. At a 75% ARV cap the most anyone lends is $247,500, so Ternus stops just short of 100%. Easy Street's 90% purchase share and New Silver's 90% loan-to-cost bind first. These are maximums; experience and credit decide what you are offered. Run your own deal in the hard money loan calculator.
What a fix and flip loan costs
Rate and points
Starting rates in the table run from 7.75% (Lima One) to 11% (top of New Silver's range). Points come on top: New Silver charges 1% to 1.75% origination and Ternus from 0.5%.
Interest and extensions
RCN Capital charges interest only on the outstanding balance and LendingOne charges no interest on undrawn funds. Ternus charges a 1% extension fee at its discretion and may require interest reserves of 6 months plus 10% of the rehab budget.
A fix and flip deal, walked through
The same $200,000 purchase, $50,000 rehab and $330,000 ARV, financed on Easy Street Capital's published terms: 90% of the purchase and 100% of the rehab at its 8.90% starting rate, with 2 points (the top of its 0 to 2 range) and its $1,995 document fee. The draw schedule, buying, holding and selling costs are example inputs.
| Line | How it is calculated | Amount |
|---|---|---|
| Loan at closing | 90% of the $200,000 purchase | $180,000 |
| Rehab draws | $20,000 after month 1, $20,000 after month 2, $10,000 after month 3 | $50,000 |
| Total loan | $230,000 | |
| Cash at closing | $20,000 down + 2 points ($4,600) + $1,995 document fee + $4,000 buying costs | $30,595 |
| Interest, 6 months | On the full loan from day one | $10,235 |
| Interest if charged on drawn funds only | Purchase part for 6 months, each draw from the month it is released | $9,568 |
| Holding and selling costs | $900 a month for 6 months; 8% of the sale price | $31,800 |
| Profit after all costs | Sale at $330,000, interest on the full loan | $27,370 |
You need about $30,595 at closing, plus the monthly interest and holding costs until the sale. Easy Street says it funds draws in 48 hours; until a draw arrives, your contractor's work is paid from your cash, so keep a cushion. Whether interest runs on the full loan or only on drawn funds changes the cost by $668 here. Rerun the deal with your own numbers in the fix and flip calculator.
Flip it or keep it
Not every fix-and-flip loan ends in a sale. If the renovated property rents well, you can refinance into a 30-year DSCR rental loan and keep it. Lima One waives seasoning when you refinance its own fix-and-flip loan into its rental loan, and Kiavi allows rental cash-out after 90 days of ownership, or immediately on its own bridge loans. Check the rental lender's limits before you buy, because the refinance has to pay off the flip loan.
Questions to ask a fix and flip lender
| Ask the lender | What lenders publish |
|---|---|
| Is interest charged on the full loan or only on funds drawn? | RCN Capital charges interest only on the outstanding balance; LendingOne charges no interest on undrawn funds. |
| How fast are draws, and how are they inspected? | Lima One offers 24-hour draws, Easy Street 48 hours, and Ternus verifies milestones by photo. |
| What happens if I need more time? | Ternus charges a 1% extension fee at its discretion; Easy Street offers extension options. |
| Will you require interest reserves? | Ternus may require 6 months plus 10% of the rehab budget. |
| What are the points and fees? | New Silver charges 1% to 1.75% origination; Ternus from 0.5%. |
The 70% rule
A common screen among flippers: pay no more than 70% of the ARV minus the rehab. On the example that is 70% of $330,000 minus $50,000, or $181,000. It is a rule of thumb, not a lender requirement; the fix and flip calculator counts holding, selling and financing costs exactly.
Credit and experience
Published fix-and-flip credit minimums: 600 at Easy Street Capital and Express Capital Financing, 650 at RCN Capital and New Silver, and 660 at Lima One. Experience changes leverage and price at several lenders; RCN Capital publishes tiers by the number of flips completed. If this is your first project, read fix and flip loans for beginners.
Risks to plan for
- The ARV comes in low. The lender's appraisal sets the cap, not your estimate.
- The rehab runs over. Lenders fund the agreed budget; overruns come from your cash.
- The project runs long. Each extra month adds interest, and an extension can add a fee.
- The sale is slow. Have a refinance option, such as a DSCR rental loan, if the market turns.
Related guides
Frequently asked questions
What is a fix and flip loan?
A short-term, interest-only loan that funds the purchase of a property and its renovation, with the rehab money paid in draws as work is done. It is repaid when you sell or refinance.
How much do fix and flip lenders lend?
The smaller of their caps on cost and on after-repair value. Kiavi advertises up to 100% of cost and 80% of ARV; Ternus up to 100% of purchase and rehab capped at 75% of ARV; Easy Street Capital 90% of purchase and 100% of rehab, up to 93% of cost and 75% of ARV.
How long are fix and flip loans?
Published terms run from 6 to 18 months (Easy Street Capital) and 6 to 24 months (CoreVest) to 12 months (Ternus, LendingOne) and 13, 19 or 24 months (Lima One).
What credit score do you need for a fix and flip loan?
Published minimums are 600 at Easy Street Capital and Express Capital Financing, 650 at RCN Capital and New Silver, and 660 at Lima One.
Do fix and flip loans charge interest on the full loan?
It depends on the lender. RCN Capital charges interest only on the outstanding balance and LendingOne charges no interest on undrawn funds; ask any other lender how it charges interest on rehab money not yet released.
What is the 70% rule in fix and flip?
A rule of thumb: offer no more than 70% of the after-repair value minus the rehab cost. For a $330,000 ARV and a $50,000 rehab, that is $181,000.