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Fix and Flip Hard Money Loans

We’ve funded 2,000+ fix and flip loans.

Are you wondering how to get funding for flipping houses? For fix and flip investors, quick access to financing is incredibly important. ABL’s fix and flip loan program and hard money rehab loans provide the funding for flipping that borrowers need to purchase and rehab a property, with the speed and flexibility you deserve.

As a fix and flip hard money lender, our expedited underwriting process and professional processing team boasts an average closing time of 10 days, with a record of just 48 hours. Plus, ABL offers the industry’s only true zero-point loan program. Continue reading to find out how to get a hard money loan for a flip.

Hassle-free hard money fix and flip loans

ExperienceCredit Score MinimumInterest RatePointsAdvance Rate On PurchaseAdvance Rate On RehabARVProperty TypesPre-Pay PenaltyExtensionsBlanket LoansLoan SizeLoan Terms
Any6609.99%-15%0-2%Up to 85%100%Up to 70%Single Family, Multi Family, Mixed UseNoAvailableYes$75K - $3.5M12 Months

Closing Speed

A delay in securing funding could mean missing out on an incredible investment opportunity. We’ve closed loans to flip houses in 48 hours, and average just 10 days.

Underwriting Flexibility

Flexible underwriting criteria allows fix and flip investors to secure funding for flipping houses not available to them through other institutions.

Competitive Rates

ABL funds fix and flip investments at interest rates starting at 9.99% with as little as 02% points, and repeat borrowers receive preferred pricing. Loan amounts range from $75K to $3.5M.

Recent Fix & Flip Case Study

Loan Amount: $448,000 
Sale Price: $799,000

The experienced team of investors approach Asset Based Lending for a hard money loan to fund the purchase and rehab of this 1,800 square foot single family home in Rutherford New Jersey.

View Full Case Study →

Close In 10 Days Or Less. Rates Start As Low As 9.99%.

What is a fix and flip loan?

There are various fix and flip loans available to real estate investors. When choosing whether to go with a conventional mortgage loan or hard money lenders for flipping houses, there are a few things to consider on how to get financing. Two great financing options for fix and flip real estate investors are a 203K loan and a hard money loan. A 203K loan is a conventional mortgage loan option for fix and flip investors that specializes in renovation or construction projects and is backed by the FHA. On the other hand, a hard money fix and flip loan is a real estate investment loan that is backed by a private lender instead of a bank.

A 203K loan has a 30 year term, with an APR of 3.3% – 3.8% and up to 2.5 points due to the lender in origination fees. With this type of mortgage, the investor is responsible for a minimum down payment of at least 3.5% of the total deal cost. However, there are restrictions regarding the type of renovations permitted for this loan, and the maximum dollar amount.

How does a fix and flip loan work?

With a fix and flip hard money lender like ABL, the investor typically needs to bring more capital to the project. On average, hard money loans for flipping houses will finance about 80% – 90% of the total deal cost, leaving the investor to bring 10% – 20% to the table. Interest rates can range anywhere from 8% to 11% with origination points between 0 and 2%. Hard money fix and flip loans are short term, and designed specifically for fix and flip investors.

ABL’s hard money house flipping loans have a 12 month term, and no pre-payment penalty if you flip the property quickly and payoff the loan before maturity. Contrary to the 203k, a hard money lender is more flexible when it comes to lending criteria, underwriting guidelines, and closing speed.

What are the benefits of a hard money fix and flip loan?

For a fix and flip loan, the loan amount is calculated by looking at the value of the property in its current condition, as well as the intended renovations and estimated after repair value (ARV). A hard money loan is an attractive option for real estate investors because the loan is based primarily on the property and the deal itself; there is no minimum credit score required. With a conventional 203K loan, a minimum credit score of 640 is required and a minimum of $35,000 in repairs must be completed. With a hard money loan, there typically isn’t a minimum amount of renovations required. Additionally, investors using house flip financing can use any licensed contractor they want – not only one pre-approved by the lender. Plus, perhaps most importantly, fix and flip lenders like ABL can close in days (2 is our record!). Conventional mortgages take at least 60 days to close. In the real estate investing world where investors are working with distressed properties, you need a lender that can fund a deal in days – not months.

How can you get a hard money loans for flipping real estate?

The process of securing a house flipping loan from our lenders is much different than that of a conventional mortgage. Unlike a 203K loan, which requires a significant amount of paperwork, a hard money loan is much less document intensive. Once you find the property, you’ll speak with a loan officer and fill out our short online application. Once you’ve completed the hard money loan application, the loan officer and underwriter will review the deal with you and order an appraisal if it makes sense. From that point, ABL issues a written term sheet that outlines all of the loan’s details so there are never any hidden fees. The loan then moves to processing where the few required documents are collected, and ultimately the loan is closed by an attorney.