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Key Takeaways:
1. Fix and flip loans are short-term, asset-based loans designed to help real estate investors purchase, renovate, and resell properties quickly for profit.
2. You can fund both the purchase and the rehab through a single loan, with up to 75% of the after-repair value (ARV) covered.
3. First-time flippers are eligible, especially when paired with a strong renovation plan and realistic exit strategy.
Table of Contents
Flipping houses is not only about renovating, it’s about speed, strategy, and maximizing returns. Fix and flip loans give you the short-term capital you need to buy undervalued properties, fund the rehab, and resell for profit.
If you already own a property and are looking to grow your portfolio fast, this loan can be your edge. With Ziffy, the entire process is streamlined. You can search for deals, analyze ROI, and get pre-approved all in one place.
This guide will walk you through everything you need to know to flip smart and scale with confidence.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term mortgage option tailored specifically for investors who buy, renovate, and resell properties for profit.
Unlike traditional mortgages, this loan is focused on the property’s after-repair value (ARV) rather than your personal income or long-term plans.
It’s ideal for deals that need fast funding such as distressed homes, auction wins, or off-market properties that you plan to improve and flip quickly.
If you’re targeting quick turnarounds and equity gains, a fix and flip loan gives you the capital to move fast, renovate smart, and exit profitably.
Why Fix and Flip Loans Work for Portfolio Growth
Fix and flip loans are one of the most effective financing tools for real estate investors focused on short-term equity growth.
Unlike traditional mortgages, these loans are structured to help you move quickly on undervalued or distressed properties, complete renovations, and sell for a profit.
They’re especially useful when time is critical, such as foreclosure auctions or off-market deals. Since fix and flip loans are typically based on the after-repair value (ARV), you can borrow more upfront and maximize leverage without relying on personal income or tax returns.
For active investors looking to scale, this financing strategy allows you to recycle capital faster, take on multiple projects per year, and build long-term net worth through short-term wins.
With the right loan structure and a clear exit plan, flipping properties becomes a powerful way to expand your real estate portfolio with speed and precision.
Fix and Flip Loan Requirements
Features | Domestic Investors |
|---|---|
Credit Score | Minimum 650 |
Down Payment | 25%-30% |
Loan Term | 6-24 Months |
Loan Amount | $100K- $5M |
LTC (Loan-to-Cost) | Up to 92% |
Rehab Cost | Up to 100% |
ARV (After Repair Value) | Up to 75% |
Other Requirements | Detailed renovation plan with cost estimates. No previous experience required on flip projects. |
Approval Time | Within 15 Days |
How to Apply for Fix and Flip Loans
Ziffy simplifies the fix and flip loan process, enabling you to transition from property discovery to resale efficiently.
Here’s how it works from start to finish:
1. Identify a Promising Property
Begin by choosing a property with strong flip potential. Look for undervalued homes, distressed properties, or those in emerging neighborhoods. You can check the property listings on Ziffy to find one that holds suitable opportunities.
2. Analyze the Investment Property
Once you’ve selected a property, assess its viability. Calculate the purchase price, estimate renovation costs, and project the After Repair Value (ARV). Ensure the numbers align to provide a profitable return on investment.
3. Apply for Pre-Approval
With your property and financials in order, initiate the pre-approval process through Ziffy. Our streamlined system focuses on the property’s potential and your investment strategy, minimizing the need for extensive personal documentation.
4. Submit Your Loan Application
Complete the loan application by providing necessary details, including your renovation plan, contractor estimates, and any relevant experience in property flipping. Ziffy’s platform guides you through each step to ensure a smooth submission process.
5. Secure Approval and Close the Deal
Our underwriting team reviews your application quickly, providing approvals within 15 days. Once approved, finalize the loan details and proceed to closing. With Ziffy’s efficient services, you can close remotely, allowing you to commence renovations promptly and stay on schedule.
By following these steps, Ziffy empowers you to efficiently manage your fix and flip projects, from property selection to profitable resale.
Start Flipping with Ziffy
If you’re serious about flipping, you need financing that moves as fast as you do. Ziffy was built for investors like you who are focused, strategic, and ready to grow.
From simplified pre-approvals to tools that help you analyze every deal, everything is designed to help you close with confidence and scale smarter.
Start by finding your next project and get pre-approved with no income docs, no tax returns, and no delays. Let Ziffy handle the financing so you can focus on the flip.
FAQs
How fast can I receive funds with a Ziffy fix and flip loan?
With Ziffy, you can expect to secure Fix and Flip loan within 15 days.
What costs will the loan cover?
Ziffy finances the purchase price and up to 100 percent of verified renovation costs, subject to a combined maximum of 70 to 75 percent of the property’s after-repair value (ARV). Closing costs and interest reserves can be rolled in when leverage limits allow.
Can first-time flippers qualify?
Yes. New investors are welcome, though you may be asked for a slightly larger down payment and more detailed contractor bids. A strong deal with a proven exit plan remains the primary approval factor.
