Fix and Flip Loans

100% financing, with one condition

The purchase and the rehab can both be financed in full. The constraint is not your down payment, it is the deal itself. The total loan has to stay within 75% of the after-repair value.

Which means the math runs backward from the ARV. If a property will be worth $400,000 finished, your ceiling is $300,000 for purchase and renovation combined. Buy it at $220,000 with an $80,000 rehab and the deal works with nothing down. Buy it at $260,000 with the same rehab and it does not.

That is the whole discipline of this loan, and it is a good one. It forces you to buy right. A deal that does not leave 25% of the after-repair value on the table is a deal this loan will not do, and usually should not.

The reserve requirement catches people

On a $300,000 loan, 25% is $75,000 you need available and not spent on the deal.

Budget for it before you go under contract rather than discovering it during underwriting. It is the most common reason a deal that looks fine on paper stalls.

The 100-mile rule, and how you get past it

Your first properties have to be within 100 miles of where you live. After two completed deals, that restriction can expand.

This is more sensible than it sounds. Managing a renovation you cannot drive to is where first-time flippers lose money, and the requirement protects against the failure mode that actually happens. Once you have proven you can run a project, the leash gets longer.

For a metro Atlanta investor it is barely a constraint. A 100-mile radius reaches Athens, Macon, Columbus, Rome, Gainesville, and a good deal of east Alabama.

Why there is no income documentation, and what happens at the end

The loan is underwritten on the deal, not on you. Your income is not the source of repayment. The exit is.

That makes it workable for a full-time investor whose tax returns look nothing like their actual cash flow, and for someone flipping alongside a W-2 job who does not want two mortgages counted against their ratio.

There are two exits, and it is worth deciding which before you start. Sell it and the loan is paid off from proceeds. Or keep it as a rental and refinance into a DSCR loan, which qualifies on the property’s rent rather than your income. Plenty of investors start out planning to flip and end up keeping the good ones.

One piece of practical advice: get contractor bids before you apply rather than estimating. The budget you submit is what the loan is sized against, and an underestimated budget mid-project is the most common way these deals go wrong.