Fix-and-Flip Loans: How Real Estate Investors Fund Deals When Banks Say No

If you have ever tried to fund a fix-and-flip through a traditional bank, you know the script by heart. They want three years of tax returns. They want the renovation complete before they appraise the property. They want a FICO score that leaves no room for any investor who went through a rough year. And then they stop returning emails.

The reality is that traditional banks are not built to fund real estate investors who move fast. Their underwriting criteria were designed for homeowners, not house flippers. The good news: there is an entirely separate lending infrastructure that underwrites the deal, not the borrower’s W2.

At Slate Financial, we specialize in matching fix-and-flip investors with lenders who understand exactly what you are trying to do. Here is what you need to know.

What Is a Fix-and-Flip Loan?

A fix-and-flip loan is a short-term real estate loan designed specifically for investors who buy distressed properties, renovate them, and sell them for a profit. Unlike a 30-year mortgage, these loans typically run 6-18 months and are structured to release funds in draws as the renovation progresses.

The underwriting centers on the deal itself: the after-repair value (ARV), the purchase price, the estimated renovation cost, and the exit strategy. A borrower with a 680 FICO and a deal showing a $140K profit margin at exit will get funded where a 30-year mortgage would not exist for the same property.

The Numbers That Actually Matter

Private and bridge lenders underwrite fix-and-flip loans on these metrics:

• ARV (After-Repair Value): What the property will be worth once renovated, based on comparable sales in the area.
• LTC (Loan-to-Cost): How much of your total project cost (purchase + renovation) the lender will cover. Many lenders go up to 85-90% LTC.
• LTV (Loan-to-Value): The loan amount relative to ARV. Most lenders cap at 65-75% of ARV.
• Exit strategy: Sell vs. refinance. Lenders want to understand how they will be repaid.

Example deal math on a typical flip:

• Purchase price: $225,000
• Estimated rehab: $80,000
• Total cost: $305,000
• ARV: $450,000
• 90% LTC = $274,500 covered by the loan
• Gross profit at exit: $145,000 (before carrying costs and commissions)

That deal gets funded. The bank’s standard mortgage criteria do not apply here.

How Fast Can You Actually Close?

This is where private lending separates from banks. Traditional mortgages take 30-45 days minimum. Fix-and-flip loans through private lenders typically close in 7-15 business days once underwriting is complete. Some close faster.

Speed matters in this market. A distressed property sitting in MLS gets multiple offers from cash buyers who move in days. If your financing takes 6 weeks, you lose the deal. Private bridge lending is built for exactly this scenario.

What Lenders Are Actually Looking For

When you apply for a fix-and-flip loan through Slate Financial, we match your deal against multiple lenders. Here is what moves the needle:

• Property location: Most active markets in FL, TX, GA, SC, NC, and nationwide.
• Experience: First-time flippers can still get funded; expect slightly lower LTC or higher rates. Experienced investors get better terms.
• FICO 620+: Many lenders consider scores in the 620-680 range if the deal math is strong.
• Deal strength: The spread between all-in cost and ARV is the key signal.
• Renovation scope: Light cosmetic rehab vs. full gut rehab affects lender appetite.

BRRRR Strategy: Where Bridge Loans Really Shine

Fix-and-flip loans are not just for investors who sell. If you are executing a BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat), a bridge loan covers the acquisition and rehab phase. Once the property is stabilized with a tenant, you refinance into a DSCR loan – which qualifies on rental income, not your personal tax return – and pull your capital back out to do the next deal.

Slate Financial works with lenders across the entire BRRRR stack: bridge loan for acquisition, DSCR loan for the hold phase. One relationship, multiple products.

Why Real Estate Investors Choose Slate

We are not a single lender. We are a brokerage that matches your deal to the right lender from our network, which means:

• One application reviewed by multiple lenders
• Competitive terms because lenders compete for your deal
• A team that knows the underwriting criteria before we submit – no wasted time on mismatches
• Lender-paid compensation on most deals (no out-of-pocket broker fee for the borrower)

Our compensation comes from the lender, inside the transaction, on most fix-and-flip and ground-up construction deals. You do not write us a check to get started.

Apply in 2 Minutes

If you have a deal in hand – or you are shopping for your next project and want to understand what you can qualify for – the fastest way to find out is to apply. We match you against our lender network and come back with real options, not a 45-day maybe.

Apply for a fix-and-flip loan at slatefinancial.io/apply/fix-and-flip

Funding is subject to lender approval. Not all applicants will qualify. Results shown are examples and not typical.

Frequently Asked Questions

What FICO score do I need for a fix-and-flip loan?

Most lenders in our network start at 620. Some consider lower scores for experienced investors with strong deal math. FICO is one input, not the deciding factor.

How much can I borrow?

Loan amounts typically range from $75,000 to $5M+ depending on the deal. Minimum property values vary by lender, usually $50,000-$100,000.

Do I need prior experience?

No, but experience improves your terms. First-time flippers with a strong deal can still qualify.

What states do you operate in?

Our lenders are active in most U.S. states. High-activity markets: FL, TX, GA, SC, NC, OH, PA, MI, IL, AZ. Contact us to confirm availability in your market.

How long does closing take?

Typically 7-15 business days from completed application. Complex deals may take longer.

Ready to see if your deal qualifies? Apply now at slatefinancial.io/apply/fix-and-flip

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