How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

Fix and Flip · 6 min read

Fix and Flip Loan Requirements: What You Need to Get Funded

The short answer

What lenders look for on a fix and flip loan: down payment, ARV, rehab budget, experience, and credit. Plus how leverage on purchase and rehab works.

A fix and flip loan is short-term, business-purpose financing that funds both the purchase and the rehab of a property you intend to renovate and sell. Because it is asset-based, approval hinges less on your paystubs and more on the deal.

The numbers a lender underwrites

Purchase leverage — we fund up to 90% of the purchase price, so you bring roughly 10% plus closing costs.
Rehab funding — up to 100% of the renovation budget, reimbursed in draws as work is completed.
ARV (after-repair value) — the appraised value once the work is done. Most lenders cap total loan exposure at a percentage of ARV.

What you bring to the table

Down payment and closing costs on the purchase
A realistic, itemized scope of work and budget
A credit profile in reasonable shape (asset-based, but it still matters)
Experience helps with leverage, but first-time flippers can still get funded

How draws work

You fund the rehab as you go and get reimbursed quickly as milestones are inspected. A dedicated closer stays on your file from term sheet to payoff, and a complete application with title can fund in as few as 5-7 days.

Speeding up the close

Have the purchase contract, scope of work, and entity documents ready, and order title early. The cleaner the file, the faster the money.

Frequently asked

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

Fix and flip loans are asset-based, so credit carries less weight than at a bank. A reasonable profile helps your rate and leverage, and weaker credit can often be offset with more equity.

How much can you borrow on a fix and flip?

Up to 90% of the purchase price and up to 100% of the rehab budget, with total exposure capped under a percentage of the after-repair value (ARV).

Can first-time flippers get a loan?

Yes. Experience helps leverage and pricing, but a first-timer with a sound deal, a realistic budget, and a clear exit can still get funded.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Fix and Flip Ground-Up Construction Transactional Funding

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Hard Money vs Private Money Hard Money vs Conventional Loan

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