Fix-and-Flip Loans in 2026: How Real Estate Investors Get Funded Without a Bank

If you have been trying to fund a fix-and-flip through a traditional bank, you already know the pain. Months of underwriting, a 700+ FICO requirement, W2 income documentation for an investment property that will not generate income until you sell it, and a decision that usually comes back as no. The bank was not built for this deal. Fix-and-flip lending was built for it.

At Slate Financial, we fund fix-and-flip deals in 10-15 days using deal-based underwriting – not your credit score, not your tax return. Here is everything you need to know about how fix-and-flip loans work in 2026.

What is a Fix-and-Flip Loan?

A fix-and-flip loan (also called a rehab loan or hard money loan) is short-term real estate financing designed specifically for investors buying distressed properties, renovating them, and reselling for profit. These loans are structured around the deal’s numbers – the purchase price, rehab budget, and after-repair value (ARV) – not the borrower’s personal income or employment status.

Key features of a fix-and-flip loan:

• Short terms: typically 12-18 months
• Draw schedule: funds released in draws as renovation milestones complete
• Asset-based: underwriting focuses on the property and deal math, not your W2
• Fast close: 10-15 days from application to funding
• Higher LTC: up to 90% of the purchase price in many programs

Why the Bank Almost Always Says No to Fix-and-Flip Deals

Traditional banks underwrite the borrower. They want to see two years of tax returns showing income from the property you are trying to fund – a property you have not purchased yet. They require a minimum FICO score (usually 700+), a seasoned LLC, income verification, and a 45-90 day approval timeline. For a time-sensitive investment deal, that process is a deal-killer.

The irony is that a 50,000 fix-and-flip with a 20,000 ARV is a safer loan than most of the mortgages banks approve every day. The property is the collateral. The deal math is the qualification. Banks just are not structured to see it that way.

How Fix-and-Flip Lenders (Like Slate) Underwrite Differently

Deal-based lenders underwrite the asset and the opportunity, not the borrower’s paycheck. Here is what actually matters when you apply for a fix-and-flip loan through Slate Financial:

• The property address and purchase price – where is the deal and what are you paying?
• The ARV (after-repair value) – what will the property be worth when the work is done? We use a third-party valuation.
• The rehab scope and budget – a licensed contractor estimate or scope of work
• Your exit strategy – are you selling or refinancing out?
• Experience level – first-time flippers qualify, though terms may vary

You do not need a 700 FICO. You do not need W2 income. You do not need an LLC that has been open for two years. If the deal makes sense, we work to get it funded. Funding is subject to lender approval.

The 90% LTC Fix-and-Flip Program

One of the most asked-about programs we place is the 90% loan-to-cost structure. This means the lender covers 90% of the total project cost (purchase + rehab), and the borrower brings 10% to the table. On a 00,000 total project, that is 0,000 out of pocket instead of the 20-30% a bank would require.

Not every deal qualifies for 90% LTC – the ARV has to support the loan, and the borrower’s experience matters – but it is available and we place these deals regularly across FL, TX, GA, SC, and other key markets.

Draw Schedules: How the Rehab Gets Funded

Fix-and-flip lenders do not hand you a check for the full rehab budget on day one. Instead, funds are released in draws tied to construction milestones. A typical structure looks like this:

• Draw 1 (at close): demolition and rough work
• Draw 2: rough electrical, plumbing, HVAC
• Draw 3: drywall, insulation, windows
• Draw 4: flooring, cabinets, fixtures
• Draw 5 (final): punch list, CO, inspection

An inspector or draw agent verifies each milestone before releasing the next draw. This protects both the lender and the borrower – you are not over-funded on a project that stalls, and funds are available when you need them to keep the crew moving.

The True Cost of a Slow Lender

Every month a fix-and-flip sits idle while you wait for financing is money out of your pocket. Holding costs alone – property taxes, insurance, utilities, security – run ,000-4,000/month on a typical deal. If a bank takes 60 days to say no, you just spent ,000-8,000 waiting. Multiply that across a pipeline of deals and the math is obvious.

A lender who closes in 10-15 days is not a luxury. It is a competitive advantage that directly impacts your return on every deal.

Fix-and-Flip Markets We Fund

Slate Financial places fix-and-flip loans across major markets including Florida, Texas, Georgia, South Carolina, and beyond. If you are buying a distressed property to renovate and resell, we want to hear about the deal.

Ready to See What Your Deal Qualifies For?

The application takes 3 minutes. No hard credit pull at application. A member of our team reviews every deal and gets back to you fast. Funding is subject to lender approval.

Apply for your fix-and-flip loan here – Slate Financial

Or call or text us directly. We are deal people. We want to hear about the opportunity.

Frequently Asked Questions

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

Most hard money / fix-and-flip programs do not have a strict minimum FICO. The deal’s numbers matter more than your credit score. Programs start as low as 620 FICO with the right deal. Funding is subject to lender approval.

How fast can I close a fix-and-flip loan?

Slate Financial closes most fix-and-flip deals in 10-15 business days from a complete application. Some deals close faster depending on the lender and the deal’s complexity.

Do I need an LLC to get a fix-and-flip loan?

Most fix-and-flip lenders prefer to fund LLCs, but individual borrowers can qualify depending on the program. We will tell you what structure the lender requires before you apply.

What states do you fund fix-and-flip loans in?

We fund deals across the US with a focus on Florida, Texas, Georgia, and South Carolina. Apply and tell us your deal details – we will let you know if your market qualifies.