Fix and Flip Loans | Brothers Financial

A Fix N Flip loan is a short-term, business-purpose loan secured by an investment property you intend to renovate and resell. Terms typically run 6 to 24 months, with 12 to 18 months being the most common. Payments during the term are usually interest-only, which keeps your monthly carrying cost low while the property is under construction, and the principal is repaid in full when you sell or refinance.

The loan is structured in two parts. The first covers a percentage of the purchase price, funded at closing. The second is the rehab budget, which is held back and released to you in draws as the work is completed and verified. Lenders generally look at two numbers: loan-to-cost, meaning the loan amount against your total purchase plus rehab, often up to roughly 85% to 90%; and loan-to-after-repair-value, meaning the loan amount against what the finished property will be worth, commonly capped around 70% to 75%.

Because these are business-purpose loans on non-owner-occupied property, qualifying looks very different from a traditional mortgage. There’s typically no debt-to-income calculation and no tax return requirement — the project has to make sense, and you have to be capable of executing it.

These loans are for real estate investors, not homeowners. That includes full-time flippers running multiple projects at once, contractors and builders buying their own inventory, part-time investors doing one or two deals a year alongside a W-2 job, and buyers picking up properties at auction, from wholesalers, or through off-market channels where speed matters more than anything else.

They’re also the right tool when a property simply can’t be financed conventionally — a house with a failed roof, missing systems, or an unpermitted addition won’t pass a standard appraisal, but it’s exactly the kind of property a Fix N Flip loan is designed for.

Experienced investors generally see the best pricing and the highest leverage, but first-time flippers can qualify as well, typically with a larger down payment and a conservative project. If you’re newer, having a licensed contractor and a realistic scope of work goes a long way.

A note on your exit: most borrowers sell the finished property. If you decide to keep it as a rental instead, we can help you refinance into long-term financing at the end of the term — worth planning for before you start, not after.

Short terms, typically 6 to 24 months, with extension options available on most programs.
Interest-only monthly payments during the term, with the balance due at sale or refinance.
Purchase and rehab funded together — the renovation budget is part of the loan, not out of pocket.
Rehab funds released through a draw schedule as work is completed and inspected.
Leverage based on cost and after-repair value — commonly up to 85–90% of cost and 70–75% of ARV.
Fast closings, often in two to three weeks, since there’s no income documentation to underwrite.
Distressed and non-conforming properties are eligible — condition that would fail a conventional appraisal is expected here.
No prepayment penalty on most programs, so an early sale doesn’t cost you.

Investment property only — these are business-purpose loans and cannot be used for a home you intend to occupy.
Credit score — generally 620 and above, with stronger pricing and leverage at higher scores.
Down payment and cash into the deal — typically 10% to 25% of total project cost depending on experience and the numbers.
Liquidity and reserves — enough cash on hand to cover your down payment, closing costs, carrying costs, and the first draw.
A defined scope of work and budget, ideally supported by a licensed contractor.
Prior flip experience helps but isn’t always required — verified projects in the last 36 months improve terms.
Loans are usually closed in the name of an entity, such as an LLC, with a personal guarantee.

REVIEWS

Customer Feedback

Brothers Financial would like to thank you for choosing us to take care of your mortgage needs. We understand the mortgage process can be very challenging, but our goal is to make it as easy as possible for you.

    
 
 
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   Rachel Eagleton 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brian helped me get funding when I had been turned down by multiple other lenders due to being self-employed. The entire process was seamless and I am so grateful for his help. Thanks to him I get to make necessary repairs to my home and stay in it for years to come.
  
 
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   Aidan Tree 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brody and Brian helped us so much in our home purchase every step of the way and made the process seamless and quick, and a at great rate!
  
 
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   Daphne Herrera 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great experience! We’ve worked with Brian for about 7 years now. We live in Colorado and when Brian advised he was moving to TN, we were bummed. Thankfully, that doesn’t prevent us from doing business! This process was fairly streamline and fairly painless. Brian made sure to update us along the way and advise if there were additional documents needed. I definitely recommend using Brother’s Financial!!
  
 
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   Mary-Grace Griffin 
 
 
 
 Trustindex verifies that the original source of the review is Google. I highly recommend Brian Reid. He helped so much with the home buying experience. He was always willing to to answer questions and guide us through the process.
  
 
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   Ann Kömel 
 
 
 
 Trustindex verifies that the original source of the review is Google. Working with Brian made our home buying process much less stressful! His knowledge and expertise got us more favorable loan terms and interest rate. He was great to communicate with and very responsive as things change quickly. Can't recommend him enough!
  
 
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   Ayoka Moss 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great time working with Brian on 4 refinances congruently!
  
 
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   Tammy Souther 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brian and his team are fantastic! Highly recommend them for you home loan needs. Communicated well and made our process a breeze!
  
 
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   Nick Souther 
 
 
 
 Trustindex verifies that the original source of the review is Google. Amazing. Brian was amazing throughout the entire process. Very transparent, and involved with you as a client. He made a stressful experience ao much easier
  
 
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   Ginny Newman 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brian was great to work with. He responded quickly and answered all our questions to help us understand and feel comfortable with the process.