Non-QM · Investor Financing
A fix & flip loan is short-term project financing built for speed: it funds the acquisition and the renovation budget in one loan, sized on what the property will be worth after the work — so your capital stretches across more deals.
For investment and business purposes only. Not available for owner-occupied primary residences.
The basics
A fix & flip loan is a short-term bridge loan for buying, renovating, and reselling residential property. Unlike a traditional mortgage — underwritten on your income over 30 years — a flip loan is underwritten on the project: the purchase price, the rehab budget, and above all the after-repair value (ARV) the finished property will command.
The structure matches the job. Terms run months, not decades. Payments are typically interest-only, keeping carry costs down while the work happens. The rehab budget is held back and released in draws as stages of work are completed and inspected — so the loan funds the project as it actually progresses.
The exit is part of the plan from day one: sell the finished property, or refinance it into long-term financing (a DSCR loan is the classic path if you decide to keep it as a rental). Good flip financing is judged on three things — leverage, speed, and how painless the draw process is.
Best suited for
✓ Investors flipping houses in Texas markets
✓ Purchases that need renovation to reach value
✓ Auction and off-market deals that must close fast
✓ BRRRR investors who'll refinance into a DSCR loan
✓ Builders and rehabbers scaling deal flow
Requirements
Flip lenders underwrite the project first and the borrower second. These four inputs drive your leverage and pricing.
The mechanics
A flip loan is a process, not just a check at closing. Knowing the mechanics before your first draw request is the difference between a smooth project and a stalled one.
Lenders cap the loan two ways — as a percentage of after-repair value and as a percentage of total cost (purchase plus rehab). Your loan is the lower of the two. The caps themselves vary by program, which is why an honest rehab budget and defensible comps matter more than optimism.
Rehab funds sit in a holdback. As you complete stages — demo, rough-in, finishes — you request a draw, an inspection confirms the work, and funds release. Clean documentation and realistic stage budgeting keep draws fast.
Interest-only payments, taxes, insurance, and utilities accrue every month you hold. A flip that runs 9 months instead of 5 didn't just delay your profit — it spent part of it. Budget the timeline like a line item.
Sell or refinance — the lender wants to see a credible path at the numbers. If the market says keep it, the refinance into a DSCR rental loan is the standard exit, and we can line both up together.
Most programs tier leverage and pricing by completed projects. Your first deal earns the next one better terms — another reason to keep the first project conservative and finishable.
Flip loans finance investment projects — never a home you intend to occupy. That's the line that keeps this fast, flexible product on the right side of lending law.
This page is reviewed by Jonathan Sarver, a licensed Texas loan officer. Have a question about your specific situation in Austin or the Hill Country? Reach out directly — a real person, licensed in Texas, will answer.
Answers
Flip loans are built for deal timelines — typically far faster than a conventional mortgage, since underwriting centers on the project rather than full consumer income documentation. Exact timing depends on title, appraisal or valuation turnaround, and how complete your budget and scope are when you apply.
Often yes. Most programs tier terms by experience, so first-time flippers may see lower leverage and higher pricing than veterans — but first deals get financed every day. A strong budget, credible comps, and adequate reserves carry more weight than a long résumé.
ARV is after-repair value — what the property will be worth once the renovation is complete, supported by comparable sales. It's the anchor for how much a lender will fund. An accurate ARV protects your profit; an inflated one gets cut in underwriting and breaks your deal math.
Your renovation budget is held back at closing and released in stages. As each phase of work completes, you request a draw, an inspection verifies the work, and funds are released. Building your budget in clean, inspectable stages is the key to a fast draw cycle.
That's the classic BRRRR path: finish the rehab, then refinance out of the flip loan into long-term financing — typically a DSCR loan qualified on the property's rent. We handle both sides, so your exit can be planned before you even close the purchase.
No. Fix & flip loans are business-purpose loans for investment projects only — they cannot finance a property you occupy or intend to occupy as your residence. If you're renovating a home you'll live in, different consumer renovation programs are the right fit, and we can point you there.
Ready when you are
Bring the address, the budget, and your ARV — we'll tell you how it sizes and what leverage it earns. Investor-direct, from a licensed Texas loan officer.
Size my flip dealThis is not a commitment to lend. All loans subject to credit approval, income and asset verification, and property appraisal. Rates and terms vary and are not guaranteed.