Fix and Flip Loan Requirements – What Investors Need to Know

If you’re looking to buy, renovate, and resell a property for profit, a fix and flip loan can provide the financing you need. But before you apply, it’s important to understand the requirements lenders look for.

At 5 Borough Success, we make fix and flip financing simple — whether you’re a first-time investor or a seasoned pro. Here’s what you need to know about the requirements.

1. Credit Score

While traditional mortgages often demand high credit, fix and flip lenders are more flexible.

Many lenders accept scores as low as 620.
Strong deals with high ARV potential may offset lower credit.
Experienced investors may qualify with even more flexibility.

2. Down Payment / Equity

Most fix and flip lenders require skin in the game:

Typically 10–25% down on the total purchase + rehab costs.
Some lenders allow cross-collateralization if you already own other properties.

3. Property Type & Condition

Must be an investment property (not your primary residence).
Can be distressed, outdated, or undervalued — as long as it’s financeable.
Single-family, multifamily, condos, and small mixed-use properties often qualify.

4. After-Repair Value (ARV)

One of the most important requirements is the ARV calculation:

Lenders typically fund 65–75% of the property’s ARV.
Example: If ARV is $500,000, a lender may fund up to $325,000–$375,000.
You’ll need a clear renovation plan to support the ARV.

5. Exit Strategy

Fix and flip loans are short-term, so lenders want to know how you’ll repay:

Sell the property after renovation (traditional fix and flip).
Refinance into a long-term loan and hold as a rental.
Provide a timeline (usually 6–18 months).

6. Documentation Needed

To speed up approval, most lenders ask for:

Purchase contract for the property.
Scope of work or renovation plan.
Contractor bids or cost estimates.
Bank statements / proof of funds.
ID and LLC docs (if buying under an entity).

7. Experience Level

First-time investors can qualify, but terms may be stricter.
Experienced flippers often receive better rates and higher leverage.

Why Work With 5 Borough Success

✅ Fast approvals (in days, not months).
✅ Flexible requirements for new and seasoned investors.
✅ Funding for both purchase and rehab costs.
✅ Local expertise in NYC, New Jersey, and nationwide markets.

Frequently Asked Questions (FAQ)

What credit score do I need for a fix and flip loan?
Many lenders accept scores as low as 620, but higher scores may secure better terms.

How much money down is required?
Typically 10–25% of the purchase + rehab costs.

Can first-time investors qualify?
Yes — at 5 Borough Success, we work with first-time flippers and experienced investors alike.

Get Funded for Your Next Flip

At 5 Borough Success, we simplify the requirements and get you funded fast. Whether you’re flipping your first property or scaling a portfolio, our loans provide the speed and flexibility you need.

📞 Call us at (718) 738-5333 or fill out the form below to apply today.

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