Fix and flip loans are built for speed, but that doesn't mean there are no rules. Private lenders move fast precisely because they know exactly what they're looking for — and once you understand the same checklist, qualifying becomes straightforward. The investors who close in days rather than weeks are simply the ones who show up with the right deal and the right paperwork.
The good news is that fix and flip loan requirements look nothing like the requirements for a conventional mortgage. There are no tax returns to scrutinize, no debt-to-income ratios to satisfy, and no two-year employment history to document. A private lender underwrites the deal itself — the property, the numbers, and your ability to execute — rather than your personal finances.
This guide breaks down exactly what lenders look for when you apply for a fix and flip loan, from credit and experience to down payment, ARV limits, and the documents that get you to a term sheet fast. At Funded Capital, we finance fix and flip deals from 8.75% with up to 90% of cost, issue term sheets in two hours, and close in as little as five days.
What Lenders Actually Underwrite
The single most important thing to understand about fix and flip financing is that the property is the collateral and the deal is the underwriting. A private lender wants to know that if everything goes wrong, the asset is worth more than the loan. That shifts the entire qualification process away from your personal income and toward the strength of the project.
The Property and the Numbers
Your lender will evaluate the purchase price, the renovation scope and budget, and — most importantly — the after-repair value (ARV), which is what the property will be worth once the work is done. The ARV drives how much a lender will advance, because it represents the exit. A deal with a strong, well-supported ARV and a realistic rehab budget is the easiest kind of loan to approve.
This is also why your numbers need to hold up to scrutiny. Inflated ARVs and underbaked rehab budgets are the fastest way to slow down or sink an application. Run every deal through our loan calculator before you submit so you know your margins are real.
Loan-to-Cost and Loan-to-ARV
Two ratios govern how much you can borrow. Loan-to-cost (LTC) measures the loan against your total project cost — purchase plus rehab. Loan-to-ARV measures the loan against the finished value. Funded Capital lends up to 90% of cost, which means you bring as little as 10% to the table while we fund the rest, including a structured rehab budget that's released in draws as the work gets done.
The Borrower Requirements
While the deal carries most of the weight, lenders still want to know who they're working with. The borrower requirements for a fix and flip loan are far lighter than a bank's, but a few factors still matter.
Credit Score
Most private lenders look for a credit score in the mid-600s or higher, though the bar is flexible because the loan is asset-backed. A stronger score can earn you better pricing and higher leverage, but a perfect score isn't required. Unlike a conventional mortgage, your credit is one input among several — not a pass/fail gate.
Experience
Experience helps, especially for higher leverage. A track record of completed flips signals to a lender that you can manage a renovation, hit a budget, and exit on time. That said, first-time flippers are absolutely fundable — a strong deal, a realistic budget, and adequate reserves can offset a thin track record. Many of our borrowers closed their first project with us.
Down Payment and Reserves
Expect to contribute roughly 10% of total project cost as your down payment when borrowing at 90% LTC, plus closing costs and cash reserves. Reserves matter because renovations rarely run perfectly to plan, and lenders want to see that you can carry the project through unexpected costs and holding time. The more skin you have in the game, the smoother the approval.
No Income Verification
Here's where fix and flip loans diverge sharply from traditional financing: most programs require no income verification. We don't ask for tax returns, W-2s, or pay stubs on the majority of our deals. That makes our loans a natural fit for self-employed investors, full-time flippers, and anyone borrowing through an LLC. Learn more about how no income verification investor loans work.
Fix & Flip Loan Requirements at a Glance
| Requirement | Typical Standard | Funded Capital |
|---|---|---|
| Credit score | Mid-600s+ | Flexible, asset-backed |
| Experience | Helpful, not required | First-timers welcome |
| Down payment | 10–20% of cost | As little as 10% |
| Max leverage | 80–90% LTC | Up to 90% LTC |
| Rate | 9–12% | From 8.75% |
| Income verification | None on most programs | None on most programs |
| Reserves | 3–6 months recommended | Deal-dependent |
| Property type | Non-owner-occupied | Non-owner-occupied 1–4 unit, multifamily |
These standards keep approvals fast because they're objective. When you know the targets in advance, you can structure a deal that clears them before you ever submit an application.
The Documents You'll Need
Because the underwriting is deal-focused, the document list is short. Having these ready is the difference between a two-hour term sheet and a stalled file. Most applications need: a purchase contract or property details for the subject, a renovation budget and scope of work, your entity documents if borrowing through an LLC, a recent bank statement showing your down payment and reserves, and a basic real estate experience summary if you have one.
That's it. No tax returns, no employment letters, no income documentation on most programs. The leaner list is intentional — it's what lets a private lender move at the speed a competitive deal demands. See exactly how our process works from application to funding.
Ready to Qualify for Your Next Flip?
Funded Capital is a Miami-based private lender built for investors who need to move fast. We finance fix and flip loans from 8.75% with up to 90% loan-to-cost, and we lend across 44 states. We underwrite the deal — the property, the budget, and the projected resale value — not your paperwork.
Term sheets in two hours. Closings in as little as five days. No income verification on most programs. Whether it's your first flip or your fiftieth, if the deal is strong, we can fund it.
Or call us directly: (305) 857-5620 | processing@fundedcapital.com
If you place loans for investor clients, our broker program makes fix and flip deals fast and predictable.
Frequently Asked Questions
What credit score do I need for a fix and flip loan?
Most private lenders look for a score in the mid-600s or higher, but because the loan is secured by the property, the requirement is flexible. A stronger score can unlock better pricing and higher leverage, but it isn't a hard pass/fail gate the way it is with a conventional mortgage. Funded Capital underwrites the deal first, so a solid project can offset a less-than-perfect score. Apply now to see what you qualify for.
Can I get a fix and flip loan with no experience?
Yes. First-time flippers are fundable as long as the deal is strong — a realistic rehab budget, a well-supported ARV, and adequate reserves go a long way toward offsetting a thin track record. Experience can earn you higher leverage over time, but plenty of our borrowers closed their very first project with us. Run your numbers through our calculator before you apply.
How much down payment do I need for a fix and flip loan?
At 90% loan-to-cost, you typically contribute about 10% of total project cost (purchase plus rehab), plus closing costs and cash reserves. The higher your down payment and reserves, the smoother the approval, since lenders want to see you can carry the project through unexpected costs and holding time.
Do fix and flip loans require income verification?
No. Funded Capital's fix and flip loans require no income verification on most programs. We don't ask for tax returns, W-2s, or pay stubs — we underwrite the property, the purchase price, the renovation budget, and the projected resale value. That makes our loans a fit for self-employed investors, full-time flippers, and anyone borrowing through an LLC.
What documents do I need to apply for a fix and flip loan?
You'll typically need the purchase contract or property details, a renovation budget and scope of work, entity documents if you're borrowing through an LLC, a recent bank statement showing your down payment and reserves, and a brief experience summary if you have one. There are no tax returns or income documents required on most programs, which is what lets us issue a term sheet in as little as two hours.