Fix & Flip Financing
Short-Term Financing for Renovation & Resale Investors
Fix-and-flip financing is designed for real estate investors purchasing properties with the intent to renovate and resell. Prosper Path Group can help eligible investors explore short-term financing solutions through our network of lending partners.
Financing eligibility, loan amounts, terms, and requirements vary by lender, property, project scope, and borrower qualifications.
Who May Consider This Program
Designed for Renovation & Resale Investors
Fix-and-flip financing may be worth exploring for investors who have identified a property with renovation potential and a clear exit strategy. Eligibility depends on the lender, property, project, and individual borrower profile.
- Investors purchasing distressed or undervalued properties
- Experienced rehabbers seeking short-term acquisition and renovation financing
- Investors with a defined exit strategy (resale or refinance)
- Real estate professionals managing multiple renovation projects
- Investors targeting value-add opportunities in established markets
- Buyers of foreclosures, REOs, or off-market properties requiring renovation
Eligible Property Types
Properties That May Qualify
Eligible property types vary by lender and program. The following represent common property types considered for fix-and-flip financing, subject to lender approval and underwriting requirements.
Single-Family Residences
Distressed or value-add single-family homes purchased for renovation and resale.
Condominiums & Townhomes
Eligible condo and townhome units requiring renovation, subject to lender and project requirements.
2–4 Unit Properties
Small multifamily properties acquired for renovation and repositioning, subject to lender guidelines.
Distressed Properties
Properties in need of significant renovation, rehabilitation, or cosmetic improvement.
Value-Add Properties
Properties with identifiable upside through renovation, repositioning, or improved management.
REOs & Foreclosures
Bank-owned and foreclosure properties eligible for fix-and-flip financing, subject to lender approval.
Program Overview
How Fix & Flip Financing Works
Fix-and-flip financing structures vary by lender. The following provides a general overview of how these programs are commonly structured.
Short-Term Loan Structure
Fix-and-flip financing is typically structured as a short-term loan designed to cover the acquisition and renovation period.
Acquisition & Renovation Costs
Financing may cover a portion of the purchase price and renovation costs, subject to lender requirements and property valuation.
Asset-Based Underwriting
Lenders may evaluate the property's after-repair value (ARV) and project scope as part of the underwriting process.
Draw Schedule for Renovations
Renovation funds may be disbursed in draws as work is completed and verified, subject to lender procedures.
Exit Strategy Flexibility
Borrowers may exit through property resale or by refinancing into longer-term financing upon project completion.
Experience Considerations
Lender requirements may vary based on the investor's renovation experience, project scope, and track record.
Our Process
A Simple Path to Fix & Flip Financing
Investment Consultation
Discuss the property, renovation scope, exit strategy, and financing objectives.
Property & Project Review
Review available information on the property, renovation plan, estimated costs, and after-repair value.
Financing Strategy
Identify potential fix-and-flip lending programs and partners that may align with the transaction.
Application & Funding
Assist the investor through the application and financing process with the selected lending partner.
Common Questions
Fix & Flip Financing — Frequently Asked Questions
What is fix-and-flip financing?
Fix-and-flip financing refers to short-term loans designed for investors purchasing properties with the intent to renovate and resell. These loans typically cover acquisition and renovation costs, with repayment expected upon sale or refinance.
How is the loan amount determined?
Loan amounts vary by lender and are typically based on factors including the purchase price, estimated renovation costs, after-repair value (ARV), and borrower qualifications. Each lender has its own underwriting criteria.
Do I need renovation experience to qualify?
Requirements vary by lender. Some lenders may require demonstrated renovation experience, while others may consider first-time investors with strong project plans and financial profiles. Prosper Path Group can help identify lenders aligned with your experience level.
How are renovation funds disbursed?
Many lenders disburse renovation funds through a draw schedule, releasing funds as work is completed and verified. The specific process varies by lender and loan program.
What happens if the project takes longer than expected?
Loan terms, extension options, and associated costs vary by lender. It is important to discuss timeline expectations and contingency planning with your lender before closing.
Can I use fix-and-flip financing for a refinance exit?
Some investors plan to refinance into longer-term financing upon project completion rather than selling. Eligibility for a refinance exit depends on the completed property's value, borrower qualifications, and lender requirements at the time of refinance.
Fix-and-flip financing eligibility, loan amounts, rates, terms, leverage, renovation funding, and underwriting requirements vary by lender, program, borrower qualifications, property type, project scope, and transaction. Submitting an inquiry or application does not guarantee approval or funding. Prosper Path Group, NMLS #25710, is a mortgage broker and does not directly fund loans.
Ready to Explore Your Options?
Explore Fix & Flip Financing Options
Tell us about your property, renovation plan, and investment goals. Prosper Path Group can help you explore available fix-and-flip financing options through our network of lending partners.