Fix & Flip · 6 min read
How Much Can I Borrow for a Fix-and-Flip?
June 5, 2026
Before you make an offer on a flip, you need to know more than the lender's maximum loan amount. The real question is how much cash you'll need to close, start the rehab, manage draw reimbursements, and keep the project moving. Here's what borrowers should understand before they swing the hammer.
One of the first questions fix-and-flip borrowers ask is:
"How much can I borrow?"
But the better question is:
"How much cash do I need to bring to closing, and how much working capital do I need during the project?"
That is where many investors get surprised.
Fix-and-flip loans are usually based on the deal itself: the purchase price, rehab budget, after-repair value, property condition, borrower experience, credit, liquidity, and exit strategy.
Typical Fix-and-Flip Loan Terms
Every lender is different, but typical fix-and-flip terms may include:
Loan amounts starting around $50,000
Loan amounts up to several million dollars
As high as 90% loan-to-cost
Sometimes up to 100% loan-to-cost, depending on investor experience
Up to 75% of after-repair value
Terms around 12 months
Possible extensions depending on the lender
Minimum credit scores typically around 660
Experience-based leverage
Full recourse and/or personal guarantees
Minimum profit or margin requirements
These are not guaranteed terms. Final approval depends on the borrower, the property, the numbers, and the lender's guidelines.
The Three Numbers That Matter Most
When a lender reviews a fix-and-flip loan, three numbers usually drive the conversation.
1. Purchase Price
This is what you are paying for the property.
Even with high leverage, most borrowers still need cash for the down payment, closing costs, lender fees, insurance, taxes, reserves, and other upfront expenses.
So do not only ask, "What percentage will you lend?"
Ask, "How much cash do I need to close?"
2. Rehab Budget
This is the money needed to repair or improve the property.
Some lenders may finance part or all of the rehab budget, but rehab funds are typically handled as reimbursements, not upfront cash.
That means the investor usually pays for repairs first, completes a portion of the work, submits a draw request, and then gets reimbursed after the lender reviews or inspects the completed work.
Draws also need to be managed carefully. Many lenders limit the number of draws per transaction, often to around 10 draws, and each draw may come with a fee, commonly around $200 per draw.
So while rehab financing can help fund the project, it does not eliminate the need for working capital.
Smart investors plan their repairs in stages so they are not wasting draw requests on small reimbursements or creating unnecessary fees.
3. After-Repair Value
The after-repair value, or ARV, is the estimated value of the property after improvements are complete.
Many lenders cap the loan based on ARV, often up to around 75% of the completed value.
This means a deal may qualify for strong leverage based on cost, but still be limited if the ARV does not support the total loan amount.
Why the Maximum Loan Amount Is Not the Whole Story
A borrower may hear terms like "90% loan-to-cost" or "100% of rehab" and assume the deal requires very little cash.
That is not always true.
The borrower may still need money for closing, repairs before reimbursement, draw fees, carrying costs, reserves, change orders, and unexpected delays.
The real question is not just:
"How much can I borrow?"
The real question is:
"How much cash do I need, when do I need it, and how does the lender release the funds?"
Questions Borrowers Should Ask
Before committing to a fix-and-flip loan, borrowers should ask:
What is the maximum loan-to-cost?
What is the maximum loan-to-ARV?
How much cash do I need to close?
Are rehab funds reimbursed through draws?
How many draws are allowed?
What is the draw fee?
How quickly are draws processed?
What credit score is required?
Are reserves required?
Are extensions available?
What happens if the project runs over budget or takes longer than expected?
These questions help borrowers understand the real structure of the loan, not just the headline terms.
The Bottom Line
Fix-and-flip financing can be a powerful tool, but borrowers need to understand the full picture.
A lender may offer high leverage, but the investor still needs enough cash to close, start the rehab, manage draw timing, cover fees, and keep the project moving.
The best question is not simply:
"How much can I borrow?"
It is:
"How much cash do I need to successfully complete this flip?"
Know that number before you buy the property.
It can be the difference between a profitable project and a very expensive lesson.
Educational content only. Not lender-specific. Terms vary by lender and deal. Financing is subject to underwriting, property review, and borrower qualifications. Lulu Capital Inc.