Fix and Flip Loan is a sub-type of hard money loan structured for residential acquisition + rehabilitation + resale ("flipping"). The loan funds purchase plus a rehab budget held in escrow and released in draws as work completes.
Structure: 6–18 month interest-only term, up to 90% loan-to-cost (LTC) on purchase and 100% of rehab, capped at 75% loan-to-after-repair-value (LTARV). Rehab budget verified by Scope of Work (SOW) at underwriting and inspected at each draw.
Key risks: ARV pull-back at appraisal, rehab budget overrun, days-on-market drag beyond loan maturity. The desk's network includes no-appraisal programs for repeat borrowers with proven flip history.