Investor guide. Updated September 2026
What do you need to qualify for a fix and flip loan?
To qualify for a fix and flip loan you generally need a credit score of 660 or higher, cash for 10% to 25% of the purchase price plus closing costs, liquid reserves of roughly 3 to 6 months of interest, a realistic renovation budget, and a purchase price plus budget that fits under about 70% to 75% of the after-repair value. Experience helps but is not required. No tax returns, W-2s or debt-to-income test.
The five things every fix and flip lender checks
| Requirement | Typical 2026 standard | Why it matters |
|---|---|---|
| Credit score | 660+ for most programs, 640 at some; 700+ for best pricing | Credit sets the leverage tier and rate. It is not a pass or fail on its own. |
| Experience | 0 to 2 completed projects = lower leverage; 3+ in 36 months = full leverage | Lenders count deeds and HUDs in your name or your entity's name, not deals you helped on. |
| Cash to close | 10% to 25% of purchase plus closing costs and points | Leverage runs up to 90% of purchase for experienced borrowers, closer to 80% for a first project. |
| Reserves | 3 to 6 months of interest payments in a verifiable account | The loan is interest-only and the property produces no income during the rehab. |
| The deal itself | Total loan (purchase plus rehab) under roughly 70% to 75% of ARV | The exit has to cover the loan with room for a soft market and cost overruns. |
How much can you borrow
The standard structure is a percentage of the purchase price plus 100% of the renovation budget, capped by a percentage of the after-repair value. In 2026 the common ceilings are up to 90% of purchase price, 100% of rehab, and 70% to 75% of ARV. Whichever number is lowest is your loan.
Example: purchase $400,000, rehab $120,000, ARV $700,000. 90% of purchase plus rehab is $480,000. 75% of ARV is $525,000. The loan is $480,000 and you bring $40,000 plus closing costs and points.
What the lender wants to see on the property
- A scope of work with numbers. Line items by trade, not a single lump sum. This is what the draw schedule is built from.
- Comps that support the ARV. Three to five sold comps within a mile and six months for the finished product, not the current condition.
- A realistic timeline. Most fix and flip loans are 12 months. A gut rehab that needs permits in Boston can run longer, so ask for 18 months up front if you need it.
- Permits and zoning. Adding a unit or changing use is a different conversation than a cosmetic rehab. Say so on day one.
- 1 to 4 units. Single family through four family is standard. Five or more units is a commercial or ground up product with different terms.
Entity, insurance and title
Nearly all fix and flip loans close to an LLC or corporation, not to you personally. You will sign a personal guaranty. Expect to provide the operating agreement, certificate of organization and an EIN letter. Builder's risk or a vacant property policy with the lender as mortgagee is required at closing, and in Massachusetts the closing runs through an attorney with a lender's title policy.
What is not required
No tax returns, no W-2s or pay stubs, no debt-to-income calculation, and no appraisal on many loans under $1 million where a broker price opinion is accepted. Self-employed investors and full-time flippers qualify on the same terms as everyone else because the asset is the qualifier.
How 316 Capital places a fix and flip
316 Capital is a private lending and capital advisory firm. We match the file to the institutional capital partner whose credit box fits the borrower's experience and the deal's leverage, then run the file with one point of contact through documents, conditions and closing. Initial pricing costs nothing and does not require a credit pull.
Price your deal, no cost, no credit pull
Send the address, purchase price, budget and target loan amount. One point of contact from pricing through closing.
Request terms Estimate pricingCommon questions
Can I get a fix and flip loan with no experience?
Yes. A first project usually means leverage closer to 80% of purchase instead of 90%, slightly higher pricing and more attention to the contractor and budget. It does not usually mean a decline. A licensed general contractor on the project helps.
What credit score do I need for a fix and flip loan?
Most programs want 660 or higher. A few go to 640 with lower leverage. Above 700 you see better pricing and above 740 the best tiers. Recent mortgage lates, open bankruptcies or foreclosures within the last few years are the usual disqualifiers.
How much money do I need to put down?
Plan on 10% to 20% of the purchase price plus closing costs and points, and then reserves on top. On a $400,000 purchase that is roughly $50,000 to $95,000 in verifiable cash depending on your leverage tier.
Does the loan cover the renovation?
Yes, typically 100% of the approved budget, released in draws as work is completed and inspected. You fund each stage, then get reimbursed, so you need working capital for the first draw.
Can I use a fix and flip loan on a property I plan to keep as a rental?
Yes. That is the BRRRR structure. The short-term loan funds the purchase and rehab, then you refinance into a DSCR rental loan once the property is leased. Tell the lender that is the plan so the exit is underwritten correctly.
316 Capital is a private lending and capital advisory firm. We arrange business-purpose real estate financing through institutional capital partners; loans are not available for owner-occupied primary residences. Figures on this page are typical market ranges as of September 2026 and are not an offer or commitment. Every quote is transaction-specific and subject to underwriting. Contact info@316cap.com or +1 (617) 546-4817.