Fix & Flip Loans in Rhode Island
You've found a property with upside in Providence, Pawtucket, Cranston, Warwick, or Woonsocket. 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.
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 as soon as 7 business days after approval so you can compete with cash buyers. In Rhode Island, the closing calendar runs on attorneys and municipal lien certificates more than on the lender, so we help you start those early.
1 · Find & Buy Below Market
Estate sales, dated houses, distressed listings. Your agent 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 Rhode Island 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 as soon as 7 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.
What a Rhode Island Flip Actually Costs: Warwick Single-Family
| Line | Example deal |
|---|---|
| Purchase | $320,000 |
| Rehab budget | $60,000 |
| After-repair value (ARV) | $560,000 |
| Max loan: 80% of purchase + 100% of rehab | $256,000 + $60,000 = $316,000 |
| ARV cap check: 65% × $560,000 | $364,000 (not binding) |
| Cash to close: 20% of purchase | $64,000 |
| Origination: 2 points | $6,320 |
| Monthly interest-only at 11% (illustrative) on funds drawn | ~$2,347 at closing on $256,000; rises as rehab draws fund |
| RI conveyance tax on a $560,000 sale ($3.75 per $500) | $4,200 |
| Exit | Sell, or refinance into a DSCR loan at 75% of ARV = $420,000 |
Rates 10–12% depending on experience, leverage, and the deal. Illustrative example only; not a commitment to lend. All loans subject to credit and collateral approval.
Rhode Island Changed the Math on Your Exit in October 2025
Rhode Island's real estate conveyance tax, which the seller pays at closing (on a flip, that's you), rose from $2.30 to $3.75 per $500 on October 1, 2025. Residential sales above $824,000 in 2026 also pay a second tier of $3.75 per $500 on the amount over that threshold, which is adjusted for inflation each January.
| Exit sale price | Before Oct 1, 2025 | 2026 |
|---|---|---|
| $500,000 | $2,300 | $3,750 |
| $560,000 | $2,576 | $4,200 |
| $900,000 | $4,600 (incl. $460 Tier 2) | $7,320 (incl. $570 Tier 2) |
It isn't deal-breaking, but it's real money that older Rhode Island flip spreadsheets don't include. Put it in your exit line before you make the offer.
Source: Rhode Island Division of Taxation, Advisory 2025-13 (Aug. 21, 2025) and Advisory 2026-01 (Jan. 8, 2026). Pre-October 2025 figures use the prior $2.30 rates and $800,000 Tier 2 threshold. Confirm your exact figure with your closing attorney.
The Rhode Island Closing Calendar
A Rhode Island fix & flip can fund as soon as 7 business days after approval. What sets the pace before approval is mostly outside the loan:
- Attorney closing. Title examination and certification must be done by a licensed Rhode Island attorney. Line one up before you're under contract.
- Municipal lien certificate. Ordered from the city or town, it confirms unpaid taxes, water, sewer, and other municipal charges. Order it the day you accept terms.
- Town-by-town recording. Each of Rhode Island's 39 cities and towns keeps its own land records.
Full walkthrough: How fast can a hard money loan close in Rhode Island?
Flipping to hold? Plan for the lead rules before you rent
If your exit is a rental and the building was built before 1978, Rhode Island requires a lead conformance certificate for the rental units, and every landlord must register with the state rental registry within 30 days of acquiring or leasing the property. Build lead-safe work into the rehab scope now; it's cheaper during the renovation than after. Then refinance into a Rhode Island DSCR loan, and see the BRRRR method in Rhode Island for the full numbers.
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 soon as 7 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
Do you do fix and flip loans in Providence?
Yes. Hard money and fix & flip loans through AFC Credit Partners are available across Rhode Island, including Providence, Pawtucket, Cranston, Warwick, East Providence, Woonsocket, and Central Falls. They are business-purpose loans for investment properties only. Send us the address and the numbers and we'll tell you the same day whether we can fund it.
Is a fix and flip loan the same as a hard money loan?
Yes. "Hard money" is the industry name for a short-term loan underwritten on the property, the rehab budget, and the after-repair value, funded by a private lender rather than a bank. We lend our own money.
How fast can you fund a Rhode Island fix and flip?
As soon as 7 business days after approval with a complete file. Before approval, the pace is set mostly by title, the municipal lien certificate, and your attorney's calendar.
Who pays the Rhode Island conveyance tax?
The seller pays it at closing, so on a flip you pay it when you sell. Since October 1, 2025, it's $3.75 per $500 of the sale price, with a second tier on residential sales above $824,000 in 2026.
Can I refinance into a rental loan instead of selling?
Yes. Once the rehab is complete and the unit is leased, a DSCR loan can refinance you out at up to 75% of appraised value with no seasoning requirement. For pre-1978 buildings, get the lead certificate and rental registration done before the refinance.
Can first-time flippers get approved?
Yes. A strong deal, solid credit, and sufficient reserves can offset a limited track record. AFC may require a larger down payment or a co-sponsor on your first deal.
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 lend up to 65% of ARV, and AFC orders an as-is and after-repair appraisal to establish it before closing.
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 that phase, and funds are released to your contractor.
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.
What happens if my renovation goes over budget?
AFC builds a contingency reserve into the budget (typically 10–15%) to cover unexpected costs. If overruns exceed it, options include a scope reduction, a supplemental draw from your own funds, or a budget amendment reviewed by AFC.
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
AFC Mortgage Group finances fix & flip projects for real estate investors across New England. Whether you are flipping your first property in Rhode Island or scaling a portfolio across markets, 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
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. 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.