Common challenges
Banks will not lend on distressed homes, and cash ties up your capital. Flip lenders size loans to the after-repair value.
Programs that fit
Fix and Flip Loans
A fix and flip loan is short-term (usually 12–18 months), interest-only financing that covers most of a distressed property’s purchase price and up to 100% of renovation costs, repaid when you sell or refinance.
Hard Money Loans
A hard money loan is a short-term investment-property loan from a private lender that approves mainly on the property’s value and the deal, not your income or credit history.
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.
Ground-Up Construction Loans
An investor construction loan funds land (or a land payoff) and vertical construction of a new 1–4 unit home in draws, then is repaid by sale or a permanent refinance.
Tips before you apply
- Use the 70% rule as a ceiling, not a target.
- Track every flip’s HUD; experience tiers raise your leverage.
FAQ
What is the best mortgage for house flippers?
It depends on your documentation and goal. The programs that most often fit are Fix and Flip Loans, Hard Money Loans, Bridge Loans, Ground-Up Construction Loans.