Fix and Flip Loan Rates, Points & Approval Explained

A fix and flip loans is a short-term, asset-based loan real estate investors use to buy a distressed or undervalued property, renovate it, and resell it for a profit. Instead of underwriting your paycheck, the lender underwrites the deal itself, looking mainly at the property's current condition, the renovation plan, and its projected after-repair value (ARV).

Investors turn to fix and flip financing when a property needs work a conventional mortgage won't cover, or when speed matters more than the lowest possible rate. Before you sign anything, it helps to understand how rates, points, fees, and your project's numbers fit together, because those variables decide what a flip actually costs you and how much you can borrow.

What Are Fix and Flip Loan Rates?

The interest rate on a fix and flip loan is the cost of borrowing the money, expressed as a percentage and charged on the outstanding balance for as long as you hold the loan. On most short-term, asset-based loans, interest is charged only on the amount you've actually drawn, not the full approved line, which matters on projects funded through a renovation draw schedule.

Rates on this kind of financing aren't standardized. They move with the lender, property type, borrower experience and credit profile, requested leverage, the market, and general lending conditions at the time. Two investors with similar deals can see different pricing from the same lender. Because of that, we won't quote a single "typical" rate here — the only reliable number is the one in your term sheet.

A few things generally influence where your rate lands:

• Leverage — financing a higher share of total project cost is often priced differently than a lower-leverage deal.
• Borrower track record — a documented history of completed flips can factor into pricing.
• Property and market risk — condition, location, and exit liquidity all play a role.
• Loan term — interest-only structures are priced differently than amortizing loans.

Rate and points work together, so it's worth understanding points before comparing offers.

How Many Points Do Fix and Flip Loans Cost?

Points are an upfront fee, paid at closing, expressed as a percentage of the loan amount. One point equals 1% of the loan. Points are separate from the interest rate: the rate is what you pay over the life of the loan, while points are a one-time cost that factors into your total financing cost from day one.

Points on hard money fix and flip loans vary by lender, deal size, leverage, and risk profile, the same way rates do.

Some lenders price higher points with a lower rate, or the reverse. There isn't a single industry-standard figure that applies to every transaction, so confirm actual terms with the lender directly rather than assuming a number.

Pricing also differs by lender type. Private lenders for fix and flip deals typically set points based on the individual project's leverage and risk, rather than a fixed rate card, which is why two quotes on the same property can look different.

When comparing offers, look at the full picture rather than any single line item:

Your total financing cost, not any one number in isolation, is what actually determines whether a flip pencils out.

What Are the Requirements for a Fix and Flip Loan?

Requirements vary from lender to lender, but most private lenders evaluate a similar set of factors when reviewing a fix and flip project:

• Property type and condition — most fix and flip lenders focus on residential properties, often 1–4 unit homes.
• Purchase price and renovation scope — the numbers behind the deal.
• After-repair value (ARV) — the estimated market value once renovations are complete.
• Loan-to-cost (LTC) — the loan amount as a percentage of total project cost (purchase plus renovation).
• Borrower experience — some lenders want to see prior renovation or construction experience.
• Credit profile — even asset-based lenders typically set a minimum credit threshold.
• Exit strategy — how you plan to repay the loan, usually through a sale or refinance.

InstaLend, specifically, lends on 1–4 unit single-family residential properties, finances up to a 90% loan-to-cost ratio, and looks for a minimum FICO score of 660 along with a licensed general contractor or prior construction experience on the borrower's side. Income documentation such as W-2s or tax returns is not required. These figures come directly from InstaLend's fix and flip program details and may not reflect what every fix and flip lender requires.

How Do Lenders Approve Fix and Flip Loans?

Approval criteria differ by lender and by transaction, but the process usually follows a similar shape:

1. Property and project evaluation. The lender looks at the property's current condition and the scope of planned work.
2. Purchase and renovation numbers. You'll typically provide the purchase price and an itemized renovation budget.
3. ARV and LTC review. The lender uses your projected after-repair value and the requested loan-to-cost ratio to size the loan.
4. Borrower and project review. Credit, experience, and the overall strength of the plan get evaluated.
5. Financing structure. The lender determines the loan amount, term, and draw schedule for renovation funds.
6. Final approval and closing. Once terms are agreed, the loan closes and funding begins.

InstaLend's process follows this same general shape but moves faster than a conventional lender: you submit the property address, purchase price, estimated renovation costs, and projected ARV, which InstaLend says takes under five minutes and doesn't require financial documents at that stage. InstaLend's team then evaluates the deal based on the property's current value, renovation scope, and ARV rather than personal income. Pre-approval is available in 24–48 hours, and InstaLend states most loans close and fund within 10–14 business days, with renovation costs released through a draw schedule as work progresses. None of this guarantees approval or a specific timeline for any individual deal — every project is still evaluated on its own numbers.

How Much Can You Borrow for a Fix and Flip Project?

Borrowing capacity on a fix and flip project generally comes down to a few variables working together: the purchase price, your renovation budget, the property's projected ARV, the lender's maximum loan-to-cost ratio, and your own qualifications as a borrower.

Here's a simplified, hypothetical example to illustrate the math (this is an example only, not an actual loan offer):

• Purchase price: $180,000
• Renovation budget: $45,000
• Total project cost: $225,000
• Hypothetical maximum LTC: 80%
• Illustrative financing amount: $180,000

In this example, the projected ARV would also need to support the loan, since lenders weigh ARV alongside LTC rather than LTC alone. Actual borrowing capacity depends on the specific lender's guidelines and the individual deal.

On InstaLend's fix and flip program, loan amounts range from $50,000 to $5 million or more, with financing available up to 95% of total project cost (purchase and renovation combined) and a maximum loan-to-cost of 90%. The final amount on any given deal depends on the property, purchase price, renovation budget, ARV, LTC, and borrower experience.

Before approaching any lender, it generally helps to have ready: the property address and purchase price, a realistic renovation budget (ideally contractor-backed), a projected ARV based on comparable sales, your intended timeline, and your exit strategy — sale or refinance.

Fix and Flip Loans from InstaLend

We built our fix and flip program around the pace real estate investors actually need, not the pace of a traditional bank. Everything below reflects our published fix and flip product details.

• Loan amount: $50,000 to $5 million or more
• Financing structure: Up to 95% of total project cost, purchase and rehab combined, with a maximum loan-to-cost of 90%
• Eligible properties: 1–4 unit single-family residential
• Loan term: 12 months, with extensions available
• Interest: Interest-only, charged on the amount you've drawn
• Income verification: None required — no W-2s, no tax returns
• Qualification basis: Loan-to-cost ratio and borrower experience, with a minimum FICO of 660
• Borrower requirement: Licensed general contractor or prior construction experience
• Prepayment penalty: None
• Pre-approval time: 24–48 hours
• Closing time: As little as 10 days, typically 10–14 business days
• Exit options: Sell the property or refinance into a long-term mortgage — including our own 30-year rental loan if you're running a BRRRR strategy
• Coverage: We lend in 46 states, everywhere except North Dakota, South Dakota, Arizona, California, and Utah

We're ranked #727 on the 2024 Inc. 5000 and #99 on the Financial Times' 2025 Americas' Fastest-Growing Companies list — an independent signal of the volume we fund every year.

If you're ready to see numbers on your own deal, you can apply for a fix and flip loan directly, or request pre-approval first if you want to know your buying power before you go under contract. Running the BRRRR strategy instead? You can pair this program with our single-family rental loan once the property is renovated and tenanted.

Fix and Flip Loan FAQs

What is a fix and flip loan?
A short-term, asset-based loan used to buy a distressed or undervalued property, renovate it, and sell it for a profit, typically within 12 to 18 months. Approval is based mainly on the property's after-repair value rather than the borrower's income.

What credit score do you need for a fix and flip loan?
Minimum credit requirements vary by lender. InstaLend, for example, looks for a minimum FICO score of 660.

How do lenders calculate fix and flip loan amounts?
Most lenders weigh purchase price, renovation budget, projected ARV, and loan-to-cost ratio together, along with borrower experience and credit.

What is a good LTC for a fix and flip loan?
There isn't a single "good" LTC — it depends on the lender's guidelines and the strength of the deal. InstaLend's fix and flip program goes up to a 90% loan-to-cost ratio.

How do points work on fix and flip loans?
Points are an upfront, one-time fee paid at closing, typically calculated as a percentage of the loan amount, separate from the ongoing interest rate.

How long does it take to get a fix and flip loan?
Timelines vary by lender. InstaLend offers pre-approval in 24–48 hours and states most loans close within 10–14 business days.

Can first-time investors get fix and flip financing?
Requirements vary by lender. InstaLend's program doesn't require prior flipping experience, since approval is based on the deal and the renovation plan rather than a borrower's track record.

What do lenders look for when approving a fix and flip loan?
Generally: property condition, purchase price, renovation scope, projected ARV, loan-to-cost ratio, borrower experience and credit, and the planned exit strategy.

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.