Core financing · Rehab
Fix & Flip / Rehab Loans
Real Estate Investor Financing Brokerage
Short-term financing to acquire and renovate investment property — whether the plan is to sell after the work, or to rent the property and refinance.
Plain-English definition
What is a fix & flip or rehab loan?
A rehab loan is short-term financing that may cover part of the purchase price and, where eligible, part of the renovation budget. Renovation funds are typically released in draws as work is completed and inspected, rather than all at closing.
These loans are built around an exit. The two most common exits are selling the finished property, or keeping it as a rental and refinancing into long-term financing.
Two exits, one financing structure
Renovate and sell
The classic flip: buy, improve, and sell. The sale repays the short-term loan.
Renovate, rent, and refinance
BRRRR means Buy, Rehab, Rent, Refinance, Repeat. The finished rental is refinanced — often into a DSCR (debt service coverage ratio) rental loan — to repay the rehab loan.
ARV (After Repair Value)
The estimated value of the property after the planned renovation is complete. Many lenders cap the loan relative to ARV.
LTC (Loan-to-Cost)
The loan amount divided by total project cost — purchase price plus renovation budget. Lenders often limit both LTC and ARV-based leverage.
Who it is for
- First-time investors with a realistic plan and budget
- Experienced flippers working on repeat projects
- BRRRR investors building a rental portfolio
- Investors buying properties that need too much work for long-term financing
Common uses
- Acquiring distressed or under-market single-family and small multifamily properties
- Funding renovation through scheduled draws as work progresses
- Moving on auction, wholesale, and off-market opportunities
- Fix-to-rent projects that later refinance into rental financing
- Completing a stalled renovation, subject to lender review
Property types that may be eligible
- Single-family homes
- 2–4 unit residential properties
- Townhomes and condos where eligible
- Certain small multifamily properties, depending on the program
Purchase, refinance, and cash-out
- Purchase
- Primary use — purchase plus eligible rehab draws
- Refinance
- Sometimes available to fund remaining renovation
- Cash-out
- Limited; depends on program and seasoning
Qualification
What lenders review
Lenders review the deal and the borrower together: purchase price, scope of work, renovation budget, ARV, LTC, borrower experience, credit, and liquidity for down payment, closing costs, interest, and reserves.
New investors can request review. Experience, contractor or team, property, credit and liquidity requirements depend on the lender; a realistic plan does not establish eligibility.
Major financing considerations
- A detailed, realistic budget and scope of work
- Draw schedule and inspection process — you may fund work before each reimbursement
- Holding costs: interest, taxes, insurance, and utilities during the project
- Contingency for overruns and timeline delays
- A credible exit: sale comps or rental and refinance numbers
Program considerations
Interest Rates
Current lender quote required
Leverage
Purchase, total-cost and ARV caps depend on program and experience
Credit Score
Lender-specific; credit and full file reviewed
Rehab Funding
Draw-based; varies by program
Close In
Complete budget, valuation, title and lender review required
These are financing considerations, not a quote or universal lender limits. Rates, credit thresholds, loan amounts, leverage and closing dates require current lender confirmation for your property, borrower profile and location. No offer, approval, commitment or guarantee is implied.
Financing availability depends on applicable state requirements, lender guidelines, property type, and program eligibility.
Hypothetical examples
How investors may use this financing
These are hypothetical examples, not ZNC transaction results, testimonials, loan approvals or promises of terms or outcomes.
Hypothetical example
Cosmetic flip
An investor buys a dated single-family home, plans kitchen, bath, and flooring updates, and intends to sell after completion. The lender reviews the budget, ARV, and sale comps.
Hypothetical example
BRRRR duplex
An investor acquires a vacant duplex, renovates both units, places tenants, and plans a DSCR refinance to repay the rehab loan.
Hypothetical example
First project with support
A newer investor with reserves partners with an experienced contractor and presents a detailed scope of work, for lender review, without assuming first-project eligibility.
FAQs
Fix & flip and rehab questions
How much will a lender finance on a flip?
A lender may apply separate purchase-price, total-cost (LTC) and after-repair-value (ARV) limits. Those limits do not by themselves determine final proceeds: credit, experience, liquidity, fees, holdbacks and other requirements also matter. Purchase advances and rehab draws are confirmed separately. Do not assume full project financing or no money down.
What is the difference between fix & flip and bridge financing?
Fix & flip loans are built around a renovation budget, with rehab funds held back and released in draws, and are sized partly on ARV. Bridge loans are short-term loans sized mainly on current value for timing or transition needs, such as closing quickly or refinancing out of a maturing loan, with little or no renovation.
I already own the property. Is a fix & flip loan still the right fit?
Often not. Fix & flip programs are designed around a purchase. If you already own the property, a bridge loan (cash-out against current value, sometimes with rehab funds) or a refinance is usually the better path, and lenders will look at how long you've owned it and what you paid. Tell us the purchase date and current value and we'll compare.
I'm a first-time flipper — can I still qualify?
New investors can submit a project for review. The lender determines experience eligibility and any team, credit, cash and reserve requirements. Prepare your budget, investor-estimated ARV with supporting comparable sales, contractor details and exit plan. None of these establishes approval.
How is the rehab budget released?
Rehab funds are usually held back at closing and released in draws: you complete a phase of work, request a draw, the lender's inspector verifies it, and funds are released on the lender's draw schedule after approval. You front the cost of each phase until it's reimbursed, so budget liquidity for that. Draw fees, inspection timing and whether an initial draw is allowed vary by lender.
What should I prepare before requesting financing?
The purchase contract (or target property), a line-item scope of work and rehab budget, an ARV estimate with comparable sales, a list of completed projects with addresses and dates, proof of liquidity (bank or brokerage statements), and your exit plan: sale price or refinance target. Scope My Deal is a preliminary starting point, not a loan approval.
Related financing
Related financing options
- Bridge Loans Short-term capital when the plan is not a major renovation.
- Investment Property Refinance The refinance exit after a renovation.
- Ground-Up Construction Financing When the project is building new rather than renovating.
- DSCR Rental Loans Long-term financing for the rent-and-refinance path.
Zion Noah Capital is a real estate investor financing brokerage. We help investors explore business-purpose financing options through participating lenders. All financing is subject to lender approval, eligibility, and program availability. Terms and conditions may vary.
Serving real estate investors nationwide, subject to state requirements and lender program availability.
Financing availability depends on applicable state requirements, lender guidelines, property type, and program eligibility.
Have a renovation project?
Send the address, purchase price, scope, and budget. We’ll review the numbers and explain which rehab paths may fit.