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    1. Loans
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    3. Fix & Flip Loans
    Investment

    Fix & Flip Loans

    "Short-term financing for flippers."

    Bridge-style financing for house flippers. Quick funding based on after-repair value. Get in, renovate, sell, repeat.

    10-20% of Purchase

    Min Down

    660+

    Min Credit

    70-75% of ARV

    Max Loan

    Get Pre-ApprovedTalk to a Flip Specialist
    Last reviewed: January 2026 · CMS Mortgage Editorial Team

    Fix & Flip Loans Benefits

    Everything you need to know about your benefits

    Fast Funding

    Close in as little as 7-14 days—move quickly on deals before they disappear.

    ARV-Based Lending

    Borrow against the future value after repairs, not just the current distressed condition.

    Interest-Only Payments

    Lower monthly payments during the renovation period preserve your cash for the project.

    Short-Term Flexibility

    6-18 month terms designed specifically for the typical flip timeline.

    Renovation Funds Included

    One loan covers both purchase price and repair costs—no separate construction loan.

    Repeat Investor Friendly

    Experienced flippers get better rates, higher leverage, and faster approval.

    How It Works

    Your path to homeownership in just a few simple steps

    Find Undervalued Property

    Identify a property with significant upside potential after renovations.

    Get ARV Appraisal

    Appraiser estimates the After-Repair Value based on comparable renovated properties.

    Loan Based on 70-75% ARV

    Borrow up to 75% of the future value—covering purchase price plus renovation costs.

    Purchase and Renovate

    Close quickly, then execute your renovation plan with your contractor team.

    Find Undervalued Property

    Identify a property with significant upside potential after renovations.

    Get ARV Appraisal

    Appraiser estimates the After-Repair Value based on comparable renovated properties.

    Loan Based on 70-75% ARV

    Borrow up to 75% of the future value—covering purchase price plus renovation costs.

    Purchase and Renovate

    Close quickly, then execute your renovation plan with your contractor team.

    Sell for Profit

    List the renovated property and sell at market value.

    Repay and Repeat

    Pay off the loan from sale proceeds and roll into your next flip.

    Real Example

    How ARV-Based Financing Works

    Purchase Price

    200000

    +
    +

    Renovation Cost

    =

    Total Loan Amount

    Down Payment (3.5%):

    After-Improved Value

    Instant Equity Built

    Loan covers purchase + most/all repairs. Your potential profit: $100,000 gross before expenses.

    Important to Know

    Things to Consider

    A reverse mortgage is a significant financial decision. Here's what you should understand before proceeding.

    Experience Matters

    Most lenders prefer borrowers with 2+ successful flips. First-time flippers may need a mentor or partner on the deal.

    Exit Strategy Required

    You need a clear plan: sell within the term or refinance to DSCR. These loans are not designed for long-term holds.

    Draw Schedule for Repairs

    Renovation funds are typically released in draws as work is completed and inspected, not all upfront.

    Interest Rate Reality

    Fix & flip rates are higher than traditional mortgages (often 10-14%). The trade-off is speed, flexibility, and ARV-based lending.

    HUD-approved counseling is required to ensure you fully understand these factors before proceeding.

    Loan Details

    Documentation Required

    • Proof of flipping experience (track record)
    • Detailed renovation scope of work
    • Contractor estimates and bids
    • Purchase contract
    • ARV appraisal or BPO

    Eligible Property Types

    • Single-family homes
    • Townhomes
    • Small multifamily (2-4 units)
    • Condos (if HOA permits renovation)

    Additional Info

    • Properties needing significant renovation
    • Distressed and foreclosed properties
    • Estate sales and probate properties
    • Off-market deals

    Fix & Flip vs. Other Investment Options

    FeatureFix & Flip(This loan)DSCRConventional
    StrategyBuy, renovate, sellBuy and holdBuy and hold
    Term6-18 months30 years30 years
    Loan BasisAfter-Repair Value (ARV)Purchase pricePurchase price
    PaymentsInterest-onlyP&I or IO optionP&I only
    Closing Speed7-14 days21-30 days30-45 days
    Renovation FundingIncluded in loanSeparateSeparate
    Best ForActive flippersRental investorsW-2 investors

    * Rates and terms subject to change. Contact us for current offers.

    FAQ

    Frequently Asked Questions

    Common questions about Fix & Flip Loans

    Last updated: May 12, 2026

    What is ARV and how does it affect my loan amount?

    ARV (After-Repair Value) is the estimated market value after renovations are complete. Fix & flip loans lend 70-75% of ARV, allowing you to borrow more than the current property value to cover both purchase and renovation costs. For example, a $200,000 property with $350,000 ARV could qualify for a $245,000 loan.

    How fast can I close on a fix & flip loan?

    Many fix & flip lenders can close in 7-14 days, significantly faster than traditional mortgages. Speed matters in competitive markets where cash offers dominate. Having your documentation ready and working with an experienced lender helps ensure the fastest possible close.

    How are renovation funds disbursed?

    Typically through a draw schedule. As you complete phases of renovation and pass inspections, the lender releases funds. Common draw milestones include foundation/demo complete, framing complete, mechanical/electrical/plumbing complete, and final finishes. This protects both you and the lender.

    Most lenders prefer 2+ successful flips on your track record. First-time flippers can often qualify by partnering with an experienced investor, having a mentor on the deal, or demonstrating relevant construction or real estate background.
    You will need to refinance (often to a DSCR loan if the property can rent) or extend the term (usually with fees). Having a solid exit strategy before you start is critical. Many investors have a backup plan to hold as a rental if the market turns.
    These are short-term, asset-based loans with higher risk for lenders. Rates of 10-14% are common. The trade-off: speed (close in days not weeks), flexibility (no income documentation), and the ability to finance based on future value rather than current distressed condition.
    Compare all loan types — Read our comprehensive mortgage guide
    Read the Compare GuideSee how Fix & Flip Loans stacks up against other mortgage options
    Compare All Programs Side-by-SideDrop Fix & Flip Loans next to up to 2 others and compare requirements line by line

    Get Rate Drop Alerts

    We'll notify you instantly when rates drop to your target.

    Get Started with Fix & Flip Loans See Today's Rates
    Top 50 National Brokerage•NMLS #212405

    Ready to Fund Your Next Flip?

    Get pre-approved and move fast when the right deal appears

    Get Pre-ApprovedTalk to a Flip Specialist

    Or call us directly: (757) 558-2603

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