Fix & Flip Loans

You've found a property with upside. The numbers work. Now you need a lender who can move fast enough to win the deal and fund both the purchase and the renovation. AFC Mortgage Group has been financing real estate investors since 1998 — we know what flippers need, and we deliver it without the runaround.

What Is a Fix & Flip Loan?

A fix and flip loan is short-term financing — typically 6 to 18 months — designed for investors who buy properties, renovate them, and sell for a profit. We finance the acquisition and renovation costs. The loan is interest-only during the term, keeping carrying costs low while you work.

Qualification is based primarily on the deal, not your personal income. We look at purchase price, rehab budget, and After Repair Value (ARV). If the deal makes financial sense and you have a credible plan, we can fund it.

Who Is a Fix & Flip Loan Right For?

Experienced house flippers needing reliable funding. First-time flippers with a solid plan and adequate capital. Investors transitioning to value-add strategies. Contractors buying distressed properties. Investors buying at auction who need fast proof of funds. BRRRR strategy investors needing short-term financing before converting to DSCR. And out-of-state investors buying rehab projects.

How Fix & Flip Loans Work at AFC

Step 1: Submit the Deal. Send us the property address, purchase price, estimated rehab budget, and projected ARV. We'll run numbers and give preliminary terms — often within the same day.

Step 2: Fast Underwriting. We review the deal, pull credit, and verify liquidity. For experienced flippers, we look at track record. For first-timers, we look at the deal itself. Our approval process is streamlined because speed wins deals.

Step 3: Close Fast. We can close fix and flip loans in as few as 10–14 days when the deal is clean. At closing, the purchase funds are disbursed and renovation funds are placed in a draw account.

Step 4: Renovate and Draw. As you complete renovation phases, request draws from the escrow account. An inspector verifies the work, and funds are released. When the project is done, sell the property or refinance into a long-term DSCR loan.

Key Benefits of Fix & Flip Loans at AFC

Speed That Wins Deals. In the flip business, the investor who can close fastest gets the deal. We can close in 10–14 days. That speed gives you a competitive advantage at the negotiating table.

Finance Both Purchase and Renovation. Don't drain your cash reserves on the acquisition and scramble for rehab funds. We finance up to 80–90% of the purchase price and up to 100% of the renovation budget, based on ARV.

Interest-Only Payments. Your monthly obligation during the loan term is interest only, keeping carrying costs low while you complete the renovation and get the property to market.

Frequently Asked Questions

What is After Repair Value (ARV)?

ARV is the estimated market value of the property after all planned renovations are completed. It's determined by an appraisal that considers comparable sales of renovated properties in the area. Your maximum loan amount is typically based on a percentage of ARV — usually 65–75%.

Can first-time flippers get approved?

Yes. While experience helps, we've funded many first-time flippers. We look at the deal fundamentals, your contractor's track record, your financial reserves, and whether the numbers make sense. A strong deal with a realistic budget can get approved even without a flip portfolio.

How does the draw process work?

Renovation funds are held in escrow and released in draws as work is completed. You submit a draw request, an inspector verifies the completed work, and funds are released — typically within a few business days. This protects both the investor and the lender.