What do you need to qualify for a fix and flip loan?

What to prepare for a fix-and-flip loan review

A useful first inquiry explains both the property and how you will complete the project. For a Massachusetts or New England purchase, send the address, purchase price, requested loan amount, renovation budget and target closing date. For a refinance, include ownership details, existing debt and the work already completed. Tell the desk whether you plan to sell or retain the property.

Review area	Prepare and confirm
Credit and borrower	Ask for the minimum credit score, credit-review process, borrower and guarantor requirements for the proposed program. Disclose issues that could affect the file rather than assuming a score alone establishes eligibility.
Project experience	List completed projects, addresses, dates, your ownership and role, and supporting records if requested. Ask how the program counts experience; helping on a project may be treated differently from owning and completing it.
Cash and reserves	Prepare evidence of funds for your purchase contribution, closing costs, required reserves, work before reimbursement and a contingency. Confirm which funds are acceptable and when they must be available.
Property and valuation	Describe condition, occupancy, unit count and intended use. Explain the proposed finished product and your estimated after-repair value. Ask what valuation is required and which value limits the loan.
Renovation plan	Provide a line-item scope, contractor details, schedule, permits and approvals needed for the actual work. Identify structural changes, added units, use changes and work already started.
Exit and term	Explain the sale or refinance plan, expected completion and time needed to exit. Confirm maturity, extension conditions, prepayment terms and what happens if costs or timing change.

Separate the purchase advance from the rehab holdback

Ask for a written breakdown of the amount advanced at closing, any rehab holdback and any interest reserve or financed fees. A total loan commitment is not cash available at purchase. Renovation funds may be released later under the agreed draw process, with documentation, inspection and approval requirements.

The proposed loan may be constrained by more than one test, including the accepted purchase or current value, eligible project cost, after-repair value and borrower requirements. Ask which test actually limits your file and how fees and reserves are treated. An advertised maximum is not an approval or a calculation of your purchase cash.

Use the Massachusetts financing-cost guide for a clearly labeled hypothetical example that separates purchase cash, holdback, points and holding-period interest. The assumptions in that example are not current program requirements.

Plan the cash needed between closing and each draw

Build a dated cash plan rather than treating the down payment as the whole requirement. Include costs paid outside closing, work that must be funded before reimbursement, draw-related costs, carrying costs and a contingency for overruns. Ask whether deposits, stored materials, partial work and change orders are eligible before committing contractor payments.

Confirm how required reserves interact with working capital. Do not count the same cash twice when it must remain available for another requirement. An interest reserve inside the loan may not be cash you can spend on construction. The construction draw checklist explains what to confirm about submissions, inspections and release approval.

Prepare the property, contractor and closing documents

• Purchase contract and addenda, or ownership and existing-loan information for a refinance.
• Line-item renovation scope, budget, contractor proposal and project schedule, with permit or approval status.
• Available property photos, occupancy details and information supporting the proposed finished value.
• Borrower identification, entity and authorized-signer information, and evidence of available funds as requested.
• Title and insurance contact details, with the required coverage, endorsements and closing requirements confirmed for the file.

Ask for the exact checklist before ordering reports, opening or changing an entity, or buying insurance. Confirm the borrowing structure, any personal guaranty and who must sign. Asset-focused financing is not a blanket waiver of income documents, credit review or a valuation. Do not assume an appraisal will be waived because of the loan amount. Organize the request with the investor loan document checklist and use the upload route confirmed for your file, not a public inquiry form, for sensitive records.

If you plan to keep the property as a rental

Tell the desk at the first inquiry. A later refinance is a separate underwriting decision, not an automatic conversion of the renovation loan. Before relying on that exit, confirm the expected rent, qualifying payment, property condition and lease requirements, ownership history, available cash and the existing loan payoff. Review the DSCR rental-loan preparation guide; a planned rental income or coverage ratio does not secure future financing.

Massachusetts proof and your next step

See our completed Boston bridge financing example. It is a bridge transaction, not a promise of renovation-loan terms, eligibility or the same result on another property. Then explore fix-and-flip and bridge financing and send the address, transaction details, scope, budget, experience and intended exit for a transaction-specific review. 316 Capital arranges business-purpose real estate financing through institutional capital partners.

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Common questions

Can I get a fix and flip loan with no experience?

A first project is not a guaranteed fit or an automatic decline. Ask whether the proposed program accepts first-time investors and how it evaluates your contractor, scope, available cash and project. Do not assume the same leverage or pricing as an experienced borrower.

What credit score do I need for a fix and flip loan?

Confirm the minimum credit score and other credit requirements for the proposed program. A score alone does not establish eligibility, leverage or pricing. Disclose relevant credit issues so the desk can assess the actual file.

How much money do I need to put down?

Ask for the purchase advance and an itemized cash-to-close estimate, then separately plan required reserves, carrying costs, working capital before draws and a contingency. A rehab holdback is not purchase cash, and a quoted down payment is not the entire cash requirement.

Does the loan cover the renovation?

Confirm the eligible budget, rehab holdback, borrower contribution and draw conditions in the written proposal. Do not assume every cost or change order is financed. Plan how work will be paid before reimbursement, and do not equate a completed inspection with release approval.

Can I use a fix and flip loan on a property I plan to keep as a rental?

Disclose the rental exit when the file is first reviewed. Confirm whether the proposed short-term financing permits that plan and separately assess the refinance requirements. Future DSCR financing, its terms and its availability are not guaranteed by the renovation loan.

Related guides

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. This guide is a preparation checklist, not current program thresholds, a rate quote or an approval. Requirements and financing availability depend on the property, borrower and transaction. Every quote is transaction-specific and subject to underwriting. Contact [email protected] or +1 (617) 546-4817.