FIX & FLIP LOANS

A minimum FICO score of 620, an eligible property (SFR, condo or townhome, 2-4 units), an application, a schedule of real estate owned and proof of funds. First time flippers are allowed. The deal itself has to work: purchase price, rehab budget and after-repair value within the program's 85% of the purchase, 100% of the rehab and 75% of ARV.

Fix and flip requirements

The rehab or construction budget is held back at closing and released in draws as stages of work are completed and verified. Loan Goat's fix and flip program funds up to 100% of the rehab alongside up to 85% of the purchase; ground-up construction offers flexible draws through every stage. Interest is charged only on the drawn balance.

Construction draws

Not on the purchase: the published maximum is 85% of the purchase, so a down payment and reserves are required. Where the program does reach 100% is the rehab, funded through the holdback. If the down payment is the obstacle, the structure is worth a conversation before you walk away from the deal.

Fix and flip loans

The 70% rule is an investor's rule of thumb, not a lender's requirement: pay no more than 70% of the after-repair value (ARV) minus the renovation cost, so the margin covers financing, holding costs and profit. It is a screening tool for flips; lenders size the loan against the purchase price, the rehab budget and the ARV. Loan Goat's fix and flip program lends up to 85% of the purchase, 100% of the rehab and 75% of ARV, so a deal that passes the 70% rule usually leaves room for the down payment and reserves.

Fix and flip loans Also answered under Bridge Loans

The down payment is the gap between the price and what the program lends. Loan Goat publishes its maximum leverage: up to 75% LTV on residential bridge and 70% on commercial, up to 85% of the purchase and 100% of the rehab on fix and flip, up to 80% LTC on ground-up construction and up to 80% LTV on the rental DSCR loan, so the minimum cash in is the remainder plus closing costs and any reserves. Leverage is set per deal and can be lower than the maximum.

Leverage by program

They are worth it when the spread between the purchase price plus rehab and the resale value covers the cost of capital with profit left over. The loan buys leverage and speed, up to 85% of the purchase and 100% of the rehab funded through draws, so your cash goes further across more projects. Run the numbers with the financing cost included; if the deal only works without it, it does not work.

Fix and flip financing guide

Private and hard money lenders offer them; banks generally do not, because the property is being renovated and the loan is short. Loan Goat is a direct lender for fix and flip loans in California and beyond, with first time flippers allowed and a 620 minimum FICO.

Fix and flip loans