Your rate isn't a fixed number you can look up in a table, it's calculated deal by deal, based on your property, your track record, and how much risk your lender is taking on. Banks price around your personal income and credit. We price around your deal. Once you understand how that works, you can position yourself, and your next project, for better terms.
Below, we break down what actually drives pricing on fix and flip loans, what else factors into your true cost of borrowing, how we (and lenders like us) evaluate risk behind the scenes, and how you can put yourself in a stronger position before you apply.
No two flips get priced the same way, because no two deals carry the same risk to us. Instead of running your numbers through a single formula, we weigh several factors together to land on your terms.
Put together, these factors explain why two investors buying similar properties in the same month can walk away with different terms from us. Your deal profile, not a rate sheet, drives the outcome.
The rate you're quoted is only part of your cost equation. Most fix and flip financing also involves origination points, an upfront fee charged as a percentage of your loan amount, plus standard closing costs like title, escrow, and recording fees.
Think of points and rate as two levers we can adjust. Some lenders offer you a lower rate in exchange for more points upfront; others do the opposite. Neither structure is inherently better for you, it depends on how long you expect to hold the loan. A shorter renovation and resale timeline generally favors more points and a lower rate, since you won't be paying that rate for very long. A longer timeline shifts the math the other way.
When you compare offers, look at your total cost of capital across your expected project timeline, not just the headline rate. A slightly higher rate with fewer fees can end up cheaper for you than a low rate loaded with points, especially on a shorter project.
It's also worth asking us, or any lender, directly whether there's a prepayment penalty. If your flip sells ahead of schedule, a penalty for paying off your loan early can quietly erase savings you thought you'd locked in.
To understand why our financing gets priced differently than a bank loan, it helps to understand what we're actually underwriting.
Banks build their approval process around you: your income, your tax returns, your debt-to-income ratio, your employment history. That protects them against the risk that your income won't support repayment, which is exactly why banks struggle to finance distressed properties or self-employed investors with complex returns. It's also why conventional underwriting typically takes 30 to 60 days: there's a lot of your personal documentation to verify.
We flip that model. Instead of underwriting your income, we underwrite your deal, the property's current condition, your renovation scope, and its projected after-repair value (ARV). Our question isn't "can your paycheck cover the payment," it's "does this project, once completed, support the loan." That's a fundamentally different calculation, and it's why a fix and flip lender built around the deal can move faster and work with investors who wouldn't qualify for conventional financing at all.
Neither approach is universally better for you, we're built for different situations than a bank is. If you're a W-2 employee buying a move-in-ready rental with time to spare, you may genuinely get a lower rate through a conventional bank. If you're buying a distressed property on a tight timeline, you need a lender built around your deal, not your paperwork.
This is where our model changes the equation for you. Rather than qualifying you, we qualify your deal.
We finance up to 95% of your total project cost, purchase and renovation combined, with no income verification required. There are no W-2s, no tax returns, and no employment history for you to produce. Not every one of the private lenders for fix and flip deals works this way, but your approval with us is based on your property's loan-to-cost ratio and your experience with the project type, not your personal financial documentation. That works in your favor whether you're self-employed with complicated tax returns, scaling multiple deals at once without hitting a documentation ceiling, or flipping your very first property with a solid renovation plan and a realistic ARV.
Speed is built into our model too. Banks typically take 30 to 60 days to close; we fund in as little as 10 to 14 days, which can be the difference between you winning a competitive deal and losing it to a cash buyer. We disburse your renovation costs through a draw schedule as work progresses, so you're not fronting your full rehab budget out of pocket.
We also lend nationwide, across 46 states, so your financing isn't limited to markets near your local bank branch, you can pursue the deal with the best returns, wherever it is. And if your project wraps up ahead of schedule, we don't charge a prepayment penalty for paying your loan off early. Because our underwriting centers on your deal rather than your resume, we evaluate first-time flippers and investors scaling volume on the same basis: the strength of your property and your plan.
You can't control every variable we weigh, but you can control how you present your deal to us, and that has real influence over the terms you're offered. This matters especially with hard money fix and flip loans, where pricing turns on the strength of your deal rather than a standardized rate sheet.
Bring us a realistic ARV analysis. Overestimating what your property will sell for after renovation is one of the fastest ways to undermine your own application. A conservative, well-supported ARV shows us you understand your market and reduces the risk we perceive.
Document your renovation scope clearly. A detailed, itemized rehab plan, not a vague "cosmetic updates" line item, shows us you've thought through your project, not just your purchase.
Build your track record, even a small one. If you've completed even one successful flip, make sure that history is part of your application. Your experience compounds: each completed project makes your next one easier to finance.
Have a defined exit strategy. Know specifically whether you plan to sell or refinance, and be ready to speak to realistic timelines for each. If you plan to hold the property as a rental instead of selling it, tell us up front, we can carry you from a short-term rehab loan into long-term rental financing without you having to shop around mid-strategy.
Bring us a clean, well-organized deal package. The faster and more complete your submission, the faster our underwriting can move, and the more confidence we have in you as a borrower.
None of this guarantees you a specific number. But together, it shifts how we perceive the risk in your deal, and your pricing follows that risk.
What affects a fix and flip loan rate?
Your rate is shaped by a combination of factors: your credit profile, your experience as an investor, your property's location, how much of your total project cost you're financing, and how clear your exit strategy is. We weigh these together rather than relying on a single number.
Does loan experience affect my rate?
It can. Your track record of completed, successfully sold or refinanced projects signals lower execution risk to us. That said, experience isn't a strict requirement on our end, we evaluate your deal itself, so if you're a first-time investor with a solid plan, you're still eligible.
Is a fix and flip loan rate fixed or variable?
This varies by lender and product. Our financing is structured as interest-only on your drawn amount during the loan term, with your rate set at closing rather than adjusting month to month. Always confirm the structure directly with your lender before you sign.
How does InstaLend evaluate rate offers?
As a fix and flip lender, we price your financing based on your property's potential rather than your personal financial history. Your approval and terms are determined by your loan-to-cost ratio and your experience, no income verification, no W-2s, and no tax returns required from you. Your deal, not your pay stub, does the qualifying.
If you're comparing private lenders for fix and flip deals and want to see real numbers against your next project, explore our fix and flip loan program or start a pre-approval to see your terms in writing.