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FIX-AND-FLIP LOANS

Acquisition + rehab capital, in 7–14 days.

Short-term bridge financing for Texas residential flips. Interest-only, asset-based, no tax returns. Up to 90% of purchase plus 100% of rehab budget, capped at 70–75% of After-Repair Value.

12–18 mo
Term
Up to 90%
Purchase LTV
Up to 100%
Rehab funded
7–14 days
Close in
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Program overview

Built for the acquisition side of a flip or BRRRR.

Fix-and-flip loans (also called "hard money" or rehab bridge loans) are short-term, asset-based mortgages built for residential investors who need to acquire and renovate quickly. Underwriting is property-first: ARV, rehab scope, exit strategy, and your flip track record matter more than personal income. A typical close is 7–14 days from application — fast enough to compete with cash offers on off-market and distressed deals.

The trade is cost. Rates run 10–13%, with 1–3 origination points up front. Carry is interest-only, which keeps monthly burn low but means the principal stays at full balance until exit. This is why the 70% rule and a disciplined rehab timeline matter: every extra month past 6 of carry is a dent in the profit margin.

When to use a fix-and-flip loan

  • Distressed acquisitions — REO, auction, off-market, tax-sale, or motivated-seller deals.
  • Speed-critical deals where a 30-day conventional close kills the contract.
  • Rehab-heavy properties a conventional appraisal would not finance in current condition.
  • BRRRR acquisitions intended for refi into a DSCR cash-out at the end of rehab.
  • Investors lacking 25% down who can fund a 10–15% down + rehab carry but not a full down + rehab.

Program guidelines

Loan amounts$75K – $3M
Property types1–4 unit SFR, condo, townhome (non-owner-occupied)
Term6, 12, 18, or 24 month interest-only
Purchase LTVUp to 90% (experienced) · 80–85% (first-timer)
Rehab fundedUp to 100%, drawn in tranches against completed work
Max LTV — overall (ARV)70–75% of After-Repair Value
Minimum FICO680 standard · 620 with experience + reserves
Rates10–13% interest-only · 1–3 points
Reserves3–6 months of interest carry
VestingLLC, LP, or personal name with guarantee

Exit strategy matters

Fix-and-flip lenders underwrite to the exit, not just the entry. Two valid exits: sell — list and close on the renovated property, pay off the bridge from sale proceeds, pocket the profit; or refinance — keep the property as a rental and refi into a long-term DSCR loan at the new appraised value. Both work, both are common, and we structure the bridge loan with the planned exit in mind so the timing lines up.

For the BRRRR exit specifically: most DSCR cash-out refi programs require 6 months of seasoning. Plan on a 6-month rehab + lease-up window before the refi closes, which means a 12-month bridge term gives 6 months of slack.

Texas-specific considerations

Texas has no state income tax (good for net flip profit), high property taxes (~2% effective — adds to holding cost), strong rental demand across DFW/Houston/Austin/San Antonio (supports refi exit), and a deep flipper ecosystem. Strong flip submarkets include Oak Cliff and East Dallas, Houston Heights and EaDo, San Antonio inside-410, and East Austin pre-displacement neighborhoods. We finance flips across all four major metros and mid-sized Texas cities (Tyler, Waco, Lubbock, Corpus, McAllen, etc.).

FAQ

Frequently asked.

How fast can a fix-and-flip loan close?

7–14 days is typical from full application to funding. The acquisition pace of distressed and off-market deals demands speed, and fix-and-flip lenders are built around it. The fastest closes happen when the borrower has prior flip experience, comp data, and a clear rehab scope already documented.

What rates and points should I expect?

Rates run 10–13% on most Texas fix-and-flip programs, with 1–3 points up front depending on credit, experience, and leverage. Interest-only payments. The carry cost is meaningful — typical 12-month carry on a $200K loan at 11% with 2 points is ~$26K — which is why a clean 70% rule and a tight rehab timeline matter.

How much leverage can I get?

Up to 90% of purchase price + 100% of rehab on the strongest programs, capped at 70–75% of After-Repair Value (ARV) overall. First-time flippers typically see 80–85% of purchase + 100% rehab. Experienced flippers (5+ completed flips with photo evidence) often qualify for the highest leverage tier.

Do I need flip experience to qualify?

No, but it changes the terms. First-time flippers can qualify with strong credit (700+), substantial liquid reserves, and a documented rehab plan with a licensed GC. Experienced flippers (3+ completed flips) get better pricing, higher leverage, and faster closes. Track record matters more than personal income on these programs.

What happens if the flip takes longer than planned?

Most fix-and-flip loans are 12–18 month terms with extension options at additional points. Going past term without an extension triggers default-rate interest and can put the loan in workout — neither is a place you want to be. Plan rehab + listing + closing as a 6-month workflow, not the 12-month maximum. The 12 months is for slack, not the plan.

Can I refinance into a DSCR loan instead of selling?

Yes — that's the BRRRR strategy. Acquire and rehab with a fix-and-flip bridge, then refinance into a long-term <a href="/loans/dscr/" class="text-sage-700 underline hover:text-sage-800">DSCR loan</a> at 75% of the new appraised value. Most DSCR cash-out refis require 6 months of seasoning. The exit math is identical to running the <a href="/tools/brrrr-calculator/" class="text-sage-700 underline hover:text-sage-800">BRRRR Calculator</a>.

Talk to us

Get a fix-and-flip quote.

Send the deal — purchase price, rehab budget, ARV, and your exit (flip or BRRRR refi) — and we'll quote a Texas bridge program within 1 business day.

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Direct line
(903) 402-5626
Mon–Fri 9–6 CT

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