Fix and Flip Loans in Florida
When you find a property worth improving and reselling, speed and a reliable renovation budget matter. Fix and flip loans fund the purchase and the rehab in one short-term structure. We help you match the right lender to the deal and plan your exit before you buy.
Short-term capital for buy, renovate, and resell
A fix and flip loan is short-term, business-purpose financing for an investor who plans to buy a property, renovate it, and sell it. The lender typically funds part of the purchase at closing and holds the renovation budget in reserve, releasing it in draws as work is completed and inspected.
Because the loan is for a business purpose rather than a home you will live in, the lender focuses on the deal: the purchase price, the scope and cost of the rehab, the after-repair value, your experience, and how and when you will repay it. Loans are often interest-only with a term measured in months, not decades.
Purchase, draws, and payoff
Purchase funding
The lender funds a portion of the purchase price at closing; you bring the rest plus closing costs.
Rehab draws
Renovation funds are released in stages after inspections confirm completed work. You or your contractor may need to front each phase.
Interest during the project
Many loans are interest-only, and some charge interest only on funds drawn. Budget monthly carrying costs through the sale.
Exit
The loan is repaid when the property sells, or refinanced into a longer-term loan such as a DSCR mortgage if you decide to hold it.
Built for speed and renovation
Fast closings
Business-purpose lenders can often move faster than traditional mortgages, which helps in competitive deals.
Properties that need work
Fund homes that may not qualify for traditional financing in their current condition.
Rehab funds included
Purchase and renovation can be financed in one loan, preserving your cash for contingencies.
Deal-based underwriting
The property, budget, and exit plan carry significant weight alongside your credit and experience.
Exit flexibility
Sell, or refinance into a rental loan if the numbers favor holding the property.
Higher cost, short term
Rates and fees are usually higher than long-term mortgages. The deal has to support them.
What a fix and flip lender wants to see
Requirements are lender-specific. These are the common review areas.
- The deal
- Purchase contract, property condition, comparable sales, and the estimated after-repair value.
- Scope and budget
- A line-item renovation budget, timeline, and contractor information.
- Experience
- Your track record of completed projects. Newer investors may face lower leverage or added requirements.
- Funds
- Cash for the down payment, closing costs, carrying costs, and reserves for overruns.
- Entity
- Many lenders lend to an LLC or corporation, with personal guarantees from the owners.
- Exit strategy
- Your plan to sell or refinance, and a realistic timeline for each.
What to gather
Having a complete package helps you close quickly.
Purchase contract and property address
Itemized renovation budget and timeline
Contractor information, license, and insurance
Comparable sales supporting the after-repair value
Entity documents for your LLC or corporation
Bank statements showing funds for down payment, costs, and reserves
A summary of your past projects, if any
From deal to payoff
Deal review
We look at the purchase price, rehab scope, ARV, and your exit plan.
Lender match
Compare lenders on leverage, draw process, rate, points, fees, and term.
Term sheet and deposit
Review the lender's terms in writing before committing funds.
Valuation and closing
The lender reviews the property and ARV, then funds the purchase at closing.
Renovation and draws
Draws are released after inspections confirm completed work.
Sale or refinance
The loan is repaid from the sale, or refinanced into a long-term rental loan.
Fix and flip loan vs. renovation mortgage
Both fund a property that needs work. They serve different goals.
| Feature | Fix and flip loan | Renovation mortgage (FHA 203(k), HomeStyle) |
|---|---|---|
| Purpose | Buy, renovate, and resell or rent | Buy or refinance a home and improve it |
| Occupancy | Investment, not owner-occupied | FHA 203(k) for owner-occupants; HomeStyle broader |
| Term | Short term, often months | Long-term mortgage |
| Underwriting focus | The deal, budget, ARV, and experience | Borrower income, credit, and the property |
| Cost | Higher rates and fees | Long-term mortgage pricing |
| Speed | Often faster | Standard mortgage timeline |
Fix and Flip Loans FAQs
What is after-repair value (ARV)?
ARV is the estimated value of the property after the planned renovation is complete, usually supported by comparable sales. Lenders use it, along with the purchase price and rehab budget, to size the loan.
Can a first-time investor get a fix and flip loan?
Some lenders work with newer investors, often with lower leverage, more cash required, or a stronger team such as an experienced contractor. Expect more questions about your plan.
How are renovation funds paid out?
Usually in draws. After a phase of work is completed, an inspector confirms it and the lender releases funds for that phase. Plan for the cash needed between draws.
Are fix and flip loans covered by the same rules as home mortgages?
Credit extended primarily for a business purpose, including buying or improving rental or investment property you will not live in, is generally exempt from many consumer mortgage rules under Regulation Z. Read your loan documents carefully and ask questions before you sign.
What if I decide to keep the property as a rental?
You can refinance into a longer-term loan, such as a DSCR mortgage that qualifies on the property’s rental income, subject to the lender’s requirements.
What if I plan to live in the home?
Then a renovation mortgage, such as FHA 203(k) or Fannie Mae HomeStyle, is usually the better fit, with long-term pricing and consumer protections.
Run your next flip by us
Share the property, purchase price, renovation budget, and exit plan. We will help you compare lenders and structure the financing.
Important disclosures
Programs, rates and requirements are subject to change and borrower qualification. This is not a commitment to lend.