Why a regular mortgage often doesn't fit
A home mortgage is built for a place you will live in. A flip is a business project with a short timeline, a rehab budget and a plan to sell. Lenders who work with investors look at that project differently.
Terms you will hear
- Fix-and-flip loans. Short-term, business-purpose loans for buying and renovating a property to sell.
- Bridge loans. Short-term funding to cover the gap until longer-term financing or a sale.
- DSCR loans. For rentals, these look at whether the property's rent covers the payment.
- Home equity for business use. Some owners tap their own home equity. It is a big decision, so read our business-use HELOC page first.
What lenders usually look at on a deal
Expect questions about the purchase price, your rehab budget and scope, the expected value after repairs, your timeline and your experience. A clear, simple deal summary goes a long way. Rules for real estate loans can vary by state and property, so it is smart to ask early what applies to your deal.
Read the offer before you get excited about the house
Flip loans can carry points, fees and short deadlines. Ask for the total payback, every fee and what happens if the project runs long. If anything feels rushed, slow down.