Fix and Flip Loans for Florida Investors
Fix and flip loans are short-term investment loans designed for real estate investors purchasing properties that need renovation. These programs are commonly used throughout Florida to acquire, renovate, and resell or refinance and hold properties efficiently.
Unlike long-term rental financing, fix and flip loans are structured around the project itself rather than the borrower’s personal income.
What Is a Fix and Flip Loan?
A fix and flip loan is an investor-focused mortgage that finances both the purchase and renovation of a property. Approval is primarily based on the After Repair Value (ARV) of the home and a detailed renovation budget, also sometimes referred to as a scope of work.
These loans are short-term by design and are intended for properties that will be renovated and sold rather than held long term. If a borrower wants to hold a property long term after using a fix and flip loan, a refinance strategy should be in place to refinance out of the fix and flip loan once the work is complete.
Who Fix and Flip Loans Are Best For
Fix and flip loans are often best suited for:
Real estate investors rehabbing properties
Buyers purchasing distressed or outdated homes
Investors executing short-term resale strategies
Borrowers focused on project-based financing
Investors looking to preserve capital during renovation
These loans are not intended for primary residences, but there are other loans that allow for primary home renovations.
Down Payment Structure and Project-Based Financing
Fix and flip loans are structured differently than traditional investment mortgages.
Loan amounts are based on purchase price plus renovation budget, subject to ARV
Down payment requirements are often lower than long-term investment loans
Funds for renovations may be disbursed in stages as work is completed
Because financing is tied to the project, leverage is often higher than with rental property loans.
Credit, Income, and Qualification Guidelines
Qualification for fix and flip loans focuses more on the deal than the borrower.
Credit: Minimum credit requirements vary by program
Income: Personal income documentation is typically limited or not required
Experience: Some programs consider prior renovation or investment experience, but many allow for first time flippers
The strength of the property, budget, and exit strategy are key factors in approval.
Fix and Flip Loans for Purchase and Refinance
Fix and flip loans are commonly used for:
Property purchases with renovation financing
Financing an already purchased property intended as a fix and flip project
Short-term bridge financing during rehab
Loan terms are designed to align with renovation timelines and resale or other exit strategies.
Seller Concessions
Seller concessions may be allowed on fix and flip purchase transactions depending on the program and transaction structure. When permitted, concessions can help offset closing costs.
Limits may vary based on lender guidelines and deal structure.
How Fix and Flip Loans Compare to Other Programs
Fix and flip loans are often compared to:
DSCR rental loans
Bridge loans
Fannie Mae HomeStyle or FHA 203k loans for primary residence renovations
Long-term rental financing
Each option serves a different investment strategy, and fix and flip loans are specifically designed for renovation-based projects.
Talk With a Florida Mortgage Professional
Fix and flip financing requires accurate budgeting, ARV analysis, and proper structuring to ensure timelines and funding align with the project.
Speaking with a Florida mortgage professional helps ensure the loan is matched to the investment strategy and market conditions.
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