Fix & Flip Loans: Short-Term Financing for Real Estate Investors

Fix & Flip Loans are short-term, asset-based financing programs that help real estate investors purchase, renovate, and resell or refinance properties quickly. By combining acquisition and renovation funding into one streamlined loan, investors can move faster in competitive markets, use less of their own cash, and scale their portfolios efficiently. These loans are ideal for buyers seeking to turn undervalued homes into profitable assets — without the red tape of traditional lending.

Purpose and Overview

The JD.Mortgage team at Paramount Residential Mortgage Group, Inc. (PRMG) provides Fix & Flip Loans for experienced and first-time investors alike. These loans are designed for non-owner-occupied residential properties that need updates before resale or conversion to rental income. With flexible underwriting, no prepayment penalties, and financing for both purchase and rehab costs, they deliver the liquidity and control investors need.

• Eligible Properties: 1–4 unit residential (non-owner occupied)
• Occupancy Type: Investment only
• Loan Amounts: $100,000 minimum; loans above $5 million may require review
• Terms: 12 months (standard) or 24 months (for larger projects)
• Interest Rates: Starting around 9.99% based on credit and leverage
• Prepayment Penalty: None

Financing Breakdown

Fix & Flip Loans combine purchase and renovation funds into one loan, giving investors the leverage to buy and improve properties with limited upfront capital.

• Purchase: Up to 90% loan-to-cost (LTC)
• Rehab: Up to 100% of renovation costs
• Total Exposure: Typically capped at 70–75% of After-Repair Value (ARV)

Rehab funds are released through draw reimbursements as work is completed. Virtual or photo inspections help speed up approval and payment cycles.

Credit and Down Payment Requirements

• Minimum Credit Score: 600
• Down Payment: 10–15% depending on experience and credit profile
• Experienced Investors: May qualify for maximum leverage
• First-Time Investors: Accepted with slightly higher equity requirements

Underwriting and Documentation

Because these loans are for investment purposes, underwriting focuses on the property and project rather than traditional income verification.

• No tax returns or employment documentation required
• Stated income accepted
• Soft credit pull only (no score impact)
• Minimal documentation — ID and recent bank statements

Loans can close in an individual name or an LLC. When borrowing through an entity, only one signer with 20%+ ownership must be on the loan.

Construction and Draw Process

Renovation funds are reimbursed after completion of each phase. Borrowers can use licensed contractors or manage the project themselves if they have verifiable experience. Virtual inspections are commonly accepted for completed stages.

Exit Strategies and Next Steps

Once renovations are complete, investors can either sell for profit or refinance into a long-term investment product such as a DSCR Loan. Because there are no prepayment penalties, Fix & Flip Loans are perfect for projects with a 3-to-9-month turnaround.

Why Investors Choose Fix & Flip Loans

Fast approvals, flexible underwriting, and high leverage make these loans a go-to for investors who thrive on efficiency. Whether you’re scaling your business or tackling your first renovation, Fix & Flip financing can open the door to more profitable projects.

Related Loan Programs

• Explore DSCR Loans
• See All Loan Options
• Estimate Your Payment
• Learn About Refinancing

What This Means for You

If you’re buying a property to renovate and resell, Fix & Flip Loans can provide the capital, speed, and flexibility you need. The JD.Mortgage team at PRMG specializes in helping investors structure these projects for maximum profitability and fast closings — from acquisition through refinance.

Contact the JD.Mortgage team

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FAQs About Fix & Flip Loans