Fix and Flip Loan Requirements: What Lenders Look For

Typical fix and flip loan requirements

Fix and flip loans are short-term financing products designed for real estate investors who buy, renovate, and resell a property within 6 to 18 months. Requirements vary by lender, but most follow a similar underwriting playbook focused on the property, the project, and the borrower.

Core requirements include: 10–25% down payment on the purchase, a credit score of 620 or higher, reserves equal to 3–6 months of loan payments, a detailed scope of work and rehab budget, and a realistic exit strategy.

Property requirements

The property must be non-owner-occupied and held for business purposes. Single-family, 2–4 unit multifamily, and small mixed-use properties are most common. Some lenders will fund townhouses and condos; fewer will fund raw land or unusual property types.

Lenders will order an appraisal or broker price opinion (BPO) to establish the as-is value and, for rehab financing, the after-repair value (ARV). Most will fund up to 75% of ARV.

Borrower requirements

Most fix and flip lenders require a minimum FICO score of 620, with better pricing typically starting at 680+. First-time investors can still qualify but often face higher rates and larger down payment requirements. Experienced investors with 2+ completed flips usually get better leverage.

Lenders will verify reserves (liquid cash or available credit) sufficient to cover 3–6 months of payments. They’ll also pull a background check and review any bankruptcies, foreclosures, or open judgments.

Project and documentation requirements

Expect to provide a detailed scope of work listing every line item in the rehab, along with contractor bids or your internal budget. Lenders want to see that your numbers are realistic and that the total project cost plus financing fees still leaves room for a healthy profit margin against the projected ARV.

You’ll also need: a signed purchase contract, proof of funds for the down payment, an operating agreement if closing in an LLC, and insurance binders (builder’s risk + liability) before funding.