Most lenders size a flip on what the property is worth today, which is the exact number you are about to change. A fix and flip loan built around the after-repair value (ARV) works differently: it looks at your purchase price, your rehab budget and what the finished property should be worth, and it funds the purchase and the renovation together.
This guide explains how that structure works, what drives your leverage, what it costs and what the process looks like from quote to funded.
Want everything in one place? Download the free Fix and Flip Borrower Guidebook (PDF)
These are program guidelines, not a commitment to lend. Items marked † are confirmed for a specific deal only in a written term sheet.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term, business-purpose loan used to buy a property, renovate it and then sell it or refinance it. At CR Equity AI, purchase and rehab are combined in one facility, so you don’t need a separate renovation loan.
- Minimum loan: $75,000
- Term: up to 24 months of bridge financing, then up to 36 months of stabilization if you decide to hold, with no new application between the two
- Payments: interest-only †
- Income documents: no pay stubs, W-2s or tax returns, because the deal is underwritten, not your paycheck
- Eligible collateral: non-owner-occupied single-family, multifamily, mixed-use, retail, office, industrial, storage and hospitality (not RV or trailer parks)
How Much Can You Borrow on a Fix and Flip Loan?
Leverage depends on two things: how many projects you have completed (bought, improved, and sold or refinanced) and your credit score. The table shows the maximum loan-to-cost (LTC), which is the percentage of purchase price plus rehab budget the loan can cover.
| Completed projects | Credit 660–699 | Credit 700–719 | Credit 720+ |
|---|---|---|---|
| First-time investor (0) | 70% | 75% | 80% |
| 1–2 projects | 75% | 80% | 85% |
| 3–5 projects | 80% | 85% | 90% |
| 6–9 projects | 85% | 90% | 93% |
| 10+ projects | 85% | 90% | 95% |
| 3+ projects and loan ≤ $1,000,000 | 100% of purchase + rehab (credit score does not gate this tier) | ||
Below a 660 score, a file may still be reviewed case by case, with lower leverage and more weight on the property and the strength of the deal. †
The ARV Cap: Two Limits on Every Loan
Every loan is subject to two limits, and you get the lower of the two:
- Loan-to-cost: the percentage from the table, applied to purchase price plus rehab budget.
- After-repair value: total loan capped at 75% of ARV on every tier. †
A strong ARV is what makes 100% financing possible.
Worked Example
| Experienced (3+ flips) | First-timer, 720+ credit | |
|---|---|---|
| Purchase price | $200,000 | $200,000 |
| Rehab budget | $50,000 | $50,000 |
| Total cost | $250,000 | $250,000 |
| After-repair value (ARV) | $350,000 | $350,000 |
| LTC limit | 100% = $250,000 | 80% = $200,000 |
| ARV limit (75%) † | $262,500 | $262,500 |
| Maximum loan (lower of the two) | $250,000 | $200,000 |
| Down payment toward cost | $0 | $50,000 |
“100% financing” covers the purchase and the rehab. Closing costs, title and escrow, lender fees and any required reserves are still due at closing, so plan for them.
See the full leverage grid, glossary and FAQ in the free Fix and Flip Borrower Guidebook.
What Does a Fix and Flip Loan Cost?
Every fee is disclosed on your term sheet before you sign. The program guidelines include:
- Interest rate: fixed for the term and priced on your deal, based on experience, credit, leverage and property
- Origination fee: 1% of the loan on loans funded by CR Equity AI †; where a deal is placed with a capital partner, the fee is set on the term sheet and does not exceed 2%
- Technology fee: $999, paid at closing †
- Third-party costs: title insurance, escrow and settlement, recording, insurance and any inspections or valuations
- Prepayment: 3% if repaid within 30 days, 2% at days 31–45, 1% at days 46–91, and no prepayment charge after day 91 †
- Exit fee: only if stated on your term sheet; otherwise none
How Rehab Draws Work
Rehab money is held back at closing and paid out in draws as work is completed and verified. †
- You submit a draw request with photos or an inspection.
- The lender confirms the work.
- Funds go out, so the job doesn’t stall waiting on capital.
Who Qualifies for a Fix and Flip Loan?
Typically eligible:
- Investors buying and renovating a property to sell or reposition
- Owners funding renovation on a property they already own
- LLC and other entity borrowers on business-purpose deals
- Deals with a defensible ARV and a scoped rehab budget
- First-time investors, since zero completed flips does not disqualify you
Not eligible:
- Owner-occupied primary residences or any consumer-purpose loan
- RV parks and trailer parks
- Loans under $75,000
- Rehab budgets without a scope of work or a credible ARV
- Deals without a credible exit plan (sale or refinance)
What Documents Do You Need?
To price your deal, you only need three numbers: purchase price, rehab budget and ARV. To close, the file looks like this:
- The deal: signed purchase contract (or deed), detailed scope of work and line-item budget, ARV support (comparable sales or an AIVAA™ valuation), exit plan and current photos
- The borrower: entity documents, government-issued ID for each guarantor, a track record schedule if you’re claiming experience, bank statements showing funds for closing costs and reserves, and credit authorization
- Conditions to close: clear title and first-lien position, satisfactory valuation, approved rehab budget and scope, hazard or builder’s-risk insurance, and a personal guaranty from the key principal(s) †
Send your scope of work and track record with your first submission. Those two items drive your leverage tier and are the most common reason a file waits.
From Quote to Funded in Five Steps
- Get your terms in about 5 minutes. Enter your purchase price, rehab budget and ARV. It’s a soft credit pull only, so your score isn’t affected.
- Submit the deal. Upload your contract, scope of work and track record. A decision typically follows within about 4 hours.
- Review and sign your term sheet. It shows your loan amount, rate, every fee and your cash to close.
- Underwriting and title. Valuation, background review and the hard credit pull happen here, and title is ordered.
- Close and start the work. Purchase funds at closing; rehab funds are released in draws as work is completed.
Most clean files close in 9–15 days, and the fastest fund in 24–48 hours once title is clear.
What If You Decide to Keep the Property?
You don’t have to sell. You can move into stabilization for up to 36 months with no new application, or refinance into a DSCR rental loan, which qualifies on the property’s rent instead of your personal income.
Fix and Flip Loan FAQs
Can I really get 100% financing on a fix and flip?
Yes, with three or more completed projects and a loan of $1,000,000 or less. It covers purchase and rehab, up to 75% of ARV †. Closing costs and fees still apply.
I’ve never flipped a house. Can I qualify?
Yes. First-time investors start at 70–80% of cost depending on credit. Every deal still needs a credible ARV and a scoped budget.
Will checking my terms hurt my credit?
No. A soft pull is used to price your deal. A hard pull only happens after you accept terms.
Do I need tax returns or pay stubs?
No. The property and the deal are underwritten, not your personal income.
Is the renovation budget included?
Yes. Purchase and rehab are one loan, and rehab funds are released in draws as work is completed.
How fast can I close?
As little as 24–48 hours on a clean file once title is clear. Typical close is 9–15 days.
Is CR Equity AI a direct lender?
Yes. Underwriting runs on CR Equity AI’s own AI platform, and the decision on your deal is made in-house. More answers are on our FAQ page.
Get Your Fix and Flip Loan Terms
Ready to run your numbers? Get your terms in about 5 minutes with no impact on your credit score, or submit your deal directly. You can also explore the full fix and flip loan program.
Take the numbers with you: Download the free Fix and Flip Borrower Guidebook (PDF)
Questions? Email info@crequity.ai or call (949) 328-6622.
Business-purpose loans only. Subject to credit approval and underwriting. Not a commitment to lend. Advance rates, the 75% ARV cap, fees, prepayment terms, draw procedures, insurance and guaranty requirements are program guidelines confirmed only in a written term sheet; items marked † are guidelines pending confirmation for your specific loan. Leverage figures exclude closing costs, fees and reserves. Rates and terms change without notice.