Your Bank Will Never Fund Your Fix and Flip. Here’s Who Will.

You found the deal. Numbers pencil. ARV is strong, rehab scope is defined, you have done this before. Then you walk into the bank and the whole thing falls apart in 15 minutes.

It happens to experienced real estate investors every single week. And the reason is not your deal – it is the bank’s underwriting model.

Why Banks Cannot Fund Fix-and-Flip Loans

Banks underwrite to 30-year hold criteria. They need debt-service coverage based on long-term income, verified employment, two years of tax returns, and a clean FICO history. That model was built for owner-occupied mortgages held for decades.

A fix-and-flip is a 90-120 day event. You are not borrowing to hold – you are borrowing to rehab and sell. The repayment source is the sale proceeds, not your W2 income. Banks structurally cannot fit this into their underwriting boxes, so they decline.

This is not your fault. It is a product mismatch.

What Private Fix-and-Flip Lenders Actually Look At

Private lenders underwrite the DEAL:

• After-Repair Value (ARV) – what the property is worth when the work is done
• Loan-to-Cost (LTC) – what percentage of total costs they will fund (up to 90% on many programs)
• Exit strategy – is the ARV realistic? What is typical DOM in that zip code?
• Rehab scope – is the budget defensible? Do you have a contractor lined up?

Credit score matters but is not the ceiling it is at banks. Programs exist down to 580 on select deals. Experience carries real weight: a 5-flip track record with a 620 FICO will often outperform a first-timer with a 700.

What Terms Actually Look Like

On a typical fix-and-flip through Slate Financial’s lender panel:

• Loan-to-Cost: up to 90% (purchase + rehab)
• Rates: typically 9-13% depending on experience, LTV, and market
• Term: 6-18 months
• Close time: 10-21 days
• Rehab draws: disbursed on completion milestones, not upfront

Funding is subject to lender approval. Terms vary by lender, deal, and borrower profile.

How the Draw Schedule Works

The rehab money does not come all at once. Private lenders typically fund in draws tied to completed milestones:

1. Initial draw at close – covers purchase and mobilization
2. Mid-rehab draw – released after inspection confirms work complete to that stage
3. Final draw – released near completion before the listing goes live

This protects the lender. It also keeps you disciplined on the rehab timeline. Work with a contractor who understands draw-funded projects.

A Deal That Almost Died at the Bank

A real estate investor came to us with a distressed row house under contract – $140K purchase, $55K estimated rehab, $255K ARV. FICO: 618. Three banks declined before the application was fully processed.

Through Slate’s lender panel, we placed the deal with a private lender at 90% LTC. Close happened in 11 days. The property sold 4 months later at $249K.

Fictionalized from composite deal shapes. Results not typical. Funding subject to lender approval.

Who This Is For

Fix-and-flip private lending is designed for:

• Experienced investors running their first or fifth flip
• Investors with good deal sense but imperfect credit
• Anyone working in distressed or off-market properties banks will not touch
• Investors in fast-moving markets where a 90-day bank close kills deals

How to Apply

The application at Slate Financial takes about 2 minutes. We collect the basics, review your deal, and match it against our lender panel. You will know quickly whether a deal pencils and what terms look realistic.

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

We work with 12+ private lenders specializing in fix-and-flip, ground-up construction, and bridge lending. No bank needed. No 90-day wait. Start your application here.

Funding subject to lender approval. Terms vary by deal and lender.

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