Build & renovate
Fix & Flip Loans
Fix-and-flip financing combines acquisition funding with a renovation holdback for an investment property you plan to improve and sell. A strong project can qualify for high leverage, but the after-repair value cap can be the limiting factor.
Who it fits
Experienced renovators with a defined scope, a supportable resale value and enough liquidity to carry the project.
Work through the numbers
A practical example
Illustration: $400,000 purchase + $100,000 rehab = $500,000 cost. At 90% LTC the cost-based ceiling is $450,000. With a $550,000 ARV and an assumed 75% ARV cap, the value-based ceiling is only $412,500. The lower limit means $87,500 of project equity before fees, carry and reserves—not $50,000.
What to have ready
- Purchase contract and comparable sales
- Line-item rehab budget, timeline and contractor information
- Completed-project history and evidence of cash reserves
Questions, answered.
Start with the financing mechanics, then look at the details that can change your actual terms.
Is 90% LTC the same as 90% of the purchase price?
No. Loan-to-cost uses the eligible costs defined by that lender, often purchase plus approved renovation. The initial purchase advance, rehab holdback and total loan commitment are separate amounts. Ask for all three before calculating the cash needed at closing.
Can the lender fund the entire renovation?
Some programs can finance the full approved rehab budget within their total loan limits. That money is usually released as work progresses, rather than handed over at closing. Ask whether draws reimburse completed work and what cash you must advance before the first draw.
Why does ARV matter if I qualify for 90% LTC?
The loan may have both an LTC ceiling and an after-repair-value ceiling. A project with a thin resale margin can hit the ARV ceiling first. A higher LTC offer does not solve an unsupported ARV or leave more room for selling costs.
Can a first-time flipper qualify?
Some lenders consider first projects, but the strongest leverage generally goes to experienced operators. A credible contractor, realistic scope, documented liquidity and a conservative exit help. Present your actual experience rather than assuming a contractor’s track record automatically counts as your own.
What if the house does not sell before maturity?
An extension, sale-price reduction or rental refinance may be possible, but none is automatic. Check extension fees and conditions before closing. Model the rental exit using likely rent and debt service, and retain cash for a longer hold.
How do I compare two fix-and-flip quotes?
Compare purchase cash to close, total holdback, draw speed, interest on drawn versus committed funds, points, minimum interest, extension costs and any exit charge. The lowest stated rate can still produce the higher total cost for your project.
What should I send CommFi to evaluate my scenario?
Start with the property or equipment details, transaction amount, intended use and timing. Include the documents listed above when available. CommFi can then assess the financing route and request scenario-specific terms. A pre-qualification is preliminary; appraisal, documentation and final lender approval can change the result.
Go a little deeper
Program references
Published references checked September 26, 2026. Third-party examples describe market programs and do not establish a CommFi lending relationship or guarantee availability.
Headline terms are illustrative best-case program features for qualified scenarios, not a loan offer or a confirmed CommFi lender commitment. Availability, proceeds and pricing depend on the lender, borrower, collateral and final underwriting. Maximum leverage, lowest pricing and fastest closing may not be available together.