Fix and Flip Loans — Financing to Buy, Renovate & Sell in NJ, CT & FL
The short answer: A Fix and Flip loan lets you buy an investment property and fund the renovation with a single short-term loan, instead of scraping together cash for the purchase and then hunting for a second source to cover the rehab. Our program starts at a 600 minimum credit score, requires as little as 10% down for experienced investors, and finances up to 90% of the purchase price plus 100% of your rehab budget, released in draws as the work gets done. Terms run 12 months, interest-only, and funding can happen in as little as 7 to 10 days once the file is complete. There are no tax returns, no W-2s, and no debt-to-income calculation — we underwrite the deal and your track record, not your paycheck. Mortgage-World.com (NMLS #1630225) is a licensed mortgage broker in New Jersey, Connecticut, and Florida.
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Your Answer Right Here
Fix and Flip Loan Options — New Jersey, Connecticut & Florida, 2026
A Fix and Flip loan is a short-term, business-purpose loan built for one job: buy a property, renovate it, and sell it for a profit within roughly six to eighteen months. Because the loan is secured by the deal itself, approval leans on your credit, your liquidity, and how your purchase price plus renovation budget compares to the property’s after-repair value, or ARV. Newer flippers typically put down 15% to 20% and get more hand-holding on draws. Experienced investors with completed flips behind them often qualify for our lowest tier, around 10% down, and move faster since underwriting already trusts the plan. Either way, closing looks nothing like a 30-day conventional purchase — we routinely close in a week to ten days, because the property drives the timeline, not your pay stubs. Mortgage-World.com (NMLS #1630225) is licensed in New Jersey, Connecticut, and Florida and reviews every deal at no cost. Call 888.958.5382 or apply free.
Side-by-Side Comparison
Loan Program Comparison — Credit Score, Down Payment & Loan-to-Cost
Every Fix and Flip project is different. Here is how our three most common structures compare.
| Loan Structure | Min. Credit Score | Down Payment (LTC) | Max ARV Advance | Best For |
|---|---|---|---|---|
| Cosmetic / Light Rehab | 600 | 10%–15% | Up to 70% | Paint, flooring, kitchens — move-in ready in 60–90 days |
| Full Gut Rehab | 600 | 15%–20% | Up to 70% | Structural, systems, layout changes — 4–9 month timeline |
| Ground-Up Construction | 640 | 20%–25% | Up to 65% | Tear-down or vacant-lot new builds |
How Financing Works
How a Fix and Flip Loan Works, Start to Finish
Think of a Fix and Flip loan as two pieces stitched into one closing. The first piece funds the purchase, sized to your down payment and your program’s loan-to-cost cap. The second piece is a rehab reserve, held back by the lender and released to you in stages as work is completed and verified. You don’t get the full rehab budget on day one, and that’s by design — it protects the lender, and it protects you too, since it keeps a contractor from walking off with a large deposit and no finished work to show for it.
Purchase Funding and Rehab Draws
At closing, the lender funds the purchase price up to your program’s loan-to-cost limit, and you bring the rest as your down payment plus closing costs. The rehab budget sits in a holdback account. As you finish a phase of work — demo, framing, mechanicals, finishes — a third-party inspector confirms the progress and the lender releases that draw, typically within a few business days. Most lenders allow three to five draws on a standard project, and some will advance a small first draw at closing if the scope calls for immediate demo. Because you only pay interest on funds actually disbursed, your carrying costs stay lower than they would on a lump-sum loan.
Qualifying Basics
Credit Score and Investor Experience Requirements
Because a Fix and Flip loan is a business-purpose loan rather than a consumer mortgage, it sits outside many of the ability-to-repay rules that govern owner-occupied financing — the Consumer Financial Protection Bureau’s own commentary on Regulation Z spells out that exemption for loans made primarily for a business purpose. In practice, underwriting leans harder on your credit score, liquidity, and project history than a typical purchase loan would.
First-Time Flippers vs. Experienced Investors
If this is your first flip, expect a slightly higher down payment, a closer look at your reserves, and possibly a requirement to work with a licensed general contractor. Once you have two or three completed, sold projects behind you, pricing and down payment both loosen up, and draw turnaround tends to move faster since the lender has already seen you execute a plan and sell on schedule. Either way, a 600 credit score is our floor, though borrowers above 680 typically see meaningfully better pricing.
The Numbers That Matter
Down Payment, Loan-to-Cost, and After-Repair Value Explained
Three numbers drive every Fix and Flip approval, and it helps to know what each means before you run your first deal by us. Loan-to-cost, or LTC, is the percentage of your total project cost — purchase price plus rehab budget — that the loan covers. After-repair value, or ARV, is what an appraiser expects the property to be worth once your renovation is finished, based on comparable recent sales. Lenders cap advances against both numbers, and whichever cap is more conservative wins. So even if your LTC math says you qualify for 90% financing, a lender won’t advance past roughly 70% of the projected ARV, since that protects them if your resale comes in lower than expected.
Full Qualification Picture
What You Need to Qualify for a Fix and Flip Loan
- 600 minimum credit score (640 for ground-up construction)
- Prior flips help pricing but are not always required
- No tax returns, W-2s, or debt-to-income calculation
- Entity (LLC) borrowers are common and welcome
- 10% down for experienced investors on light rehab deals
- Up to 90% of purchase price plus 100% of rehab budget
- Advances capped at 70% of after-repair value
- Reserves to cover several months of carrying costs
- Purchase contract and detailed scope of work
- Contractor bids or a licensed contractor agreement
- Two months of bank or asset statements
- Government-issued ID and entity documents if applicable
- Single-family, 2–4 unit, and condo properties eligible
- Non-owner-occupied investment properties only
- Cosmetic, full gut, and ground-up scopes all considered
- Comparable sales support required for the ARV estimate
How It Works
Three Steps to Funding Your Next Flip
Purchase price, rehab scope, and comparable sales for the ARV. We run the LTC and ARV math same-day.
We match you to the wholesale lender with the best pricing and set a draw schedule around your renovation timeline.
Close in as little as 7 to 10 days, then request your first draw once the initial phase is complete.
One more thing worth knowing before you run your own numbers: how the IRS treats your eventual profit matters as much as how you finance the purchase. Properties bought, renovated, and resold within a short window are generally treated as dealer property, meaning the gain is typically taxed as ordinary income rather than capital gains — a distinction the IRS’s real estate tax guidance lays out. Worth a conversation with your accountant before you close, not after you sell. For a deeper primer on evaluating a deal before you call a lender, BiggerPockets’ guide to fix and flip financing is a solid outside resource.
Related Resources
Related Mortgage Pages
Fix and flip financing sits beside these investor programs. Here is what to compare.
What Clients Say
Real Reviews From Our Clients
Here’s what a few of our clients said about working with Mortgage-World.com.
Common Questions Answered
Frequently Asked Questions — Fix and Flip Loans
