Fix & Flip Loans in Massachusetts
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.
The Project From the Video: George Washington's Sheep Farm
If Vito's video brought you here, that project is real, and it's ours. AFC is funding the renovation of George Washington's historic 1774 sheep farm in Watertown, Connecticut, in partnership with Cam Cottam at RE/MAX Rise. A 250-year-old property coming back to life is exactly the kind of deal we love to finance, and we fund projects like it for investors across Massachusetts and New England every month, whether it's your first flip or your fiftieth.
How investors make money flipping houses
You make your money when you buy. Find a property priced below its potential: an estate sale, a dated house, a distressed listing. Renovate it on a disciplined budget. Sell it at its new market value. Your profit is the gap between your all-in cost (purchase + rehab + carrying costs) and the sale price.
Illustrative example: buy at $300,000, put $75,000 into the renovation, and sell at $525,000. After roughly $45,000 in financing, carrying, and selling costs, that leaves about $105,000 of potential profit on a single project. Every deal is different, which is why we look at your numbers with you before you commit.
Where AFC comes in
Most banks won't touch a house that needs work, and slow financing loses deals. We lend our own money: up to 80% of the purchase and 100% of the renovation budget, capped at 65% of the after-repair value, funded in as few as 10 business days after approval so you can compete with cash buyers. You bring the deal and the work. Our team brings fast, reliable capital, from people who invest in real estate ourselves.
1 · Find & Buy Below Market
Estate sales, dated houses, distressed listings. Your realtor and our team can help you judge whether the numbers actually work.
2 · Renovate With a Plan
A line-item budget and a reliable contractor. We fund the rehab in draws as each phase completes, so the project keeps moving.
3 · Sell or Rent & Refinance
Sell at the new value and take your profit, or keep it as a rental and refinance into a long-term DSCR loan.
Get Your Term Sheet
Tell us about the deal: purchase price, rehab budget, and target ARV. You'll get real terms back fast, not a runaround. Funding in as few as 10 business days after approval.
What Is a Fix & Flip Loan?
Short-term financing (typically 6 to 18 months) designed for investors who buy properties, renovate them, and sell for a profit. Payments are interest-only during the term, keeping carrying costs low while you work. Full terms and a representative example are in the disclosures at the bottom of this page.
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, we can fund it.
Who Is a Fix & Flip Loan Right For?
Experienced Flippers
Reliable funding for experienced house flippers. We look at track record and reward repeat investors with better terms.
First-Time Flippers
Solid plan and adequate capital? We’ve funded many first-time flippers. A strong deal with a realistic budget gets approved.
BRRRR Strategy Investors
Short-term financing before converting to a long-term DSCR loan. Buy, rehab, rent, refinance, repeat.
How Fix & Flip Loans Work at AFC
Submit Your Deal. Send us the address, purchase price, rehab budget, and ARV. Preliminary terms often the same day.
Term Sheet & Application. Review your preliminary terms, sign the term sheet, and complete a short application to lock the deal in.
Underwriting & ARV Appraisal. Credit, liquidity, and deal review, plus an as-completed appraisal to confirm the after-repair value.
Close Fast. As few as 10 business days after approval with a complete file. Purchase funds disbursed at closing; renovation funds held in a draw account.
Renovate & Draw. As each phase of work completes, request a draw; we inspect and release the funds so your project keeps moving.
Exit. Sell the finished property for your profit, or refinance into a DSCR loan and keep it as a long-term rental.
What You’ll Need to Submit Your Deal
The more of this you have ready, the faster we can issue terms. Don’t have everything yet? Submit anyway. We’ll help you fill in the gaps.
Borrower Documents
Entity Docs (LLC + EIN)
Your LLC operating agreement, articles, and EIN. We lend to entities, not individuals.
Proof of Funds & Reserves
Bank statements showing your down payment plus reserves for carrying costs.
Experience / Track Record
A short list of past flips or projects. New investors are welcome; terms just adjust.
ID & Credit Authorization
A government-issued ID and your authorization to pull credit for the guarantors.
What We Need on the Property
Property Under Contract
A purchase contract or signed offer showing the address, price, and key dates.
Scope of Work & Rehab Budget
A line-item renovation plan with your total rehab budget so we can size the loan.
ARV Comps
Recent comparable sales that support your after-repair value (ARV) estimate.
Contractor Bids
Written estimates from your contractor for the planned renovation work.
Frequently Asked Questions
What is After Repair Value (ARV) and how is it used?
ARV is the estimated market value of a property after all planned renovations are complete. We base the loan amount on ARV rather than the purchase price, lending up to 65% of ARV. AFC orders an as-is and after-repair appraisal to establish your ARV before closing.
Can first-time flippers get approved?
Yes. AFC works with first-time flippers. While experience helps, a strong deal, solid credit, and sufficient reserves can offset limited track record. AFC may require a larger down payment or co-sponsor on your first deal, and will guide you through the underwriting process step by step.
How does the renovation draw process work?
Renovation funds are held in escrow and released in draws as work is completed and inspected. You submit a draw request, an inspector verifies completion of that phase, and funds are released to your contractor. AFC coordinates the draw schedule to keep your project on timeline.
What credit score do I need for a fix and flip loan?
Most of our approvals have guarantor credit of 620 or better, but the deal matters more than the score: strong equity, reserves, or a solid track record can offset a thinner credit profile. We lend our own money and set terms deal-by-deal, so we can tell you quickly exactly what your profile qualifies for.
What is the typical loan term for a fix and flip loan?
Fix & flip loans are short-term bridge loans, typically 6–18 months. They are designed to cover the purchase and renovation period, after which you sell the property and repay the loan. AFC can extend terms for larger projects and will discuss exit strategy at the time of approval.
How quickly can AFC fund a fix and flip loan?
AFC can fund fix & flip loans in as few as 10 business days after approval with a complete file. Speed is one of AFC’s core advantages: we process these loans in-house and can commit quickly so you do not lose a deal to a slower lender.
What happens if my renovation goes over budget?
Cost overruns happen. AFC builds a contingency reserve into the construction budget (typically 10–15%) to cover unexpected costs. If overruns exceed the reserve, options include a scope reduction, a supplemental draw from your own funds, or a budget amendment reviewed by AFC. Communication early is key.
Can I refinance a fix and flip into a long-term rental loan?
Yes. This is the BRRRR strategy: Buy, Rehab, Rent, Refinance, Repeat. After renovating and stabilizing the property with a tenant, AFC can refinance you out of the fix & flip loan into a 30-year DSCR loan based on the property's rental income. AFC handles both legs of the transaction.
Fix & Flip Loan Requirements
Fix & flip loans are asset-based, meaning lenders focus primarily on the deal: the property's ARV, your renovation budget, and your exit strategy. AFC evaluates every deal individually.
Credit Score
620+ for the guarantors. Strong equity, reserves, or flipping experience can flex this; we price every deal individually.
Loan-to-ARV
Up to 65% of After Repair Value. AFC funds both the purchase and renovation budget within this limit.
Down Payment
Typically 10–30% of the purchase price depending on deal, credit, and experience level.
Loan Term
6–18 months. Interest-only payments during the renovation period. Extensions available for larger projects.
Property Types
Single-family, 2–4 units, condos, and small mixed-use. No owner-occupancy required.
Reserves & Experience
Liquid reserves covering 3–6 months of payments. Track record helps but first-time flippers are welcome.
Where We Lend
Our hard money and fix & flip loans are available in five New England states: Massachusetts, Connecticut, Rhode Island, Vermont, and New Hampshire. Whether you are flipping your first property in Massachusetts or scaling a portfolio across the region, AFC is built for this.
Connecticut · Alabama · California · Florida · Georgia · Massachusetts · New Hampshire · New Jersey · New York · North Carolina · Ohio · Pennsylvania · Rhode Island · South Carolina · Tennessee · Texas · Vermont
Investing across state lines? We also lend on Connecticut fix & flips and Rhode Island fix & flips.
Have a Deal? Get Your Term Sheet.
Send us the deal. We’ll give you terms, often the same day.
Submit Your DealFix & Flip Loan Disclosures: AFC Mortgage Group, LLC
AFC Mortgage Group, LLC offers short-term fix & flip and renovation loans secured by a recorded lien on the investment property. These are business-purpose real-estate loans made to business entities, not consumer loans, and never secured by a borrower's primary residence. No prepayment penalty and no minimum interest: pay the loan off early and you only pay interest for the time you used the money.
Representative Example
A $250,000 loan with a 12-month term at 12% annual interest, paid monthly ($2,500/month interest-only): 2 origination points ($5,000) plus approximately $3,000 in attorney, processing, and wire fees are charged at closing, with the $250,000 principal due at maturity. Held the full 12 months, total interest is $30,000 and total cost of credit is approximately $38,000, an Annual Percentage Rate (APR) of approximately 15.5%. Paid off at 6 months, interest is roughly $15,000 and total cost of credit roughly $23,000. Actual cost depends on how long the loan is outstanding.
Terms at a Glance
- Interest: 10–12% annual, interest-only, paid monthly
- Origination: 2 points
- Term: 6 to 18 months
- Loan amount: up to 80% of purchase plus 100% of renovation budget, capped at 65% of after-repair value and subject to underwriting
- Other fees: ~$3,000 (attorney, processing, wire)
- Prepayment: no penalty, no minimum interest
- Collateral: recorded lien on the investment property; failure to repay may result in loss of the property through foreclosure
AFC Mortgage Group, LLC. NMLS #2801, Equal Housing Opportunity. Loans are offered by AFC Mortgage Group, LLC and funded through AFC Credit Partners, AFC's lending fund. Rates, terms, and fees are representative examples only and vary by loan size, LTV, credit, experience, and market conditions. Not a commitment to lend; all loans subject to credit and collateral approval.