Fix & Flip Loan Guide 2026: Rates, LTV & How to Qualify

What Is a Fix & Flip Loan?

A fix and flip loan — also called a hard money rehab loan — is a short-term, asset-based loan designed for real estate investors who purchase distressed properties, renovate them, and sell for profit. These loans fund both the property acquisition and renovation costs in a single loan instrument, and at Sab Tera Lending, that funding comes from our own capital rather than a bank committee.

Unlike a conventional mortgage requiring income verification, W-2s, and 30–90 days to close, a fix and flip loan from Sab Tera Lending closes in as little as 7 days, requires no income verification, and qualifies based primarily on the property's value and your renovation plan — not your credit score.

Speed is often the single difference between winning and losing a deal in a competitive real estate market — a same-day commitment lets an investor make a confident offer while a bank-financed buyer is still waiting on pre-approval.

Fix and flip loans exist because conventional mortgage underwriting was never designed for distressed properties. A bank appraiser values a home as it sits today — cracked foundation, outdated kitchen, missing roof shingles and all — and most banks won't lend against a property in that condition regardless of the borrower's income or credit. Hard money lenders solve this by underwriting the deal on two numbers instead: the current as-is value and the after-repair value once the renovation scope is complete. That shift in underwriting philosophy is what makes 7-day closings and no-income-verification approvals possible in the first place.

The loan itself is structured as a single credit facility that covers both the acquisition and the renovation, disbursed over the life of the project rather than all at once. This differs meaningfully from a construction loan on new-build land, which follows a longer, more document-heavy draw schedule tied to inspection milestones set by a construction lender. A fix and flip loan's draw schedule is simpler because the renovation scope is usually smaller in dollar terms and shorter in duration — typically 3 to 9 months versus 12 to 24 months for ground-up construction.

Who Actually Uses Fix and Flip Loans?

The investor base for fix and flip financing splits roughly into three groups. The first is full-time flippers who complete 4 or more projects a year and treat financing costs as a fixed line item in their deal underwriting — for these investors, rate matters, but certainty of close matters more, since a delayed closing on a competitive property can kill the deal entirely. The second group is part-time investors who hold a W-2 job and flip 1 to 2 properties a year as a side business; this group benefits most from no-income-verification underwriting since their day job's pay stubs and tax returns would otherwise complicate a conventional loan application. The third group is first-time flippers, often coming from a background in construction, real estate sales, or property management, who understand the physical side of a renovation but haven't yet financed one — a strong deal with a clear ARV and realistic budget is usually enough to get funded even without a completed flip on record.

How LTV and ARV Work for Fix & Flip Loans

The two most important numbers in fix and flip financing are LTV (Loan-to-Value) and ARV (After-Repair Value).

LTV measures the loan relative to the property's current value. Sab Tera Lending funds up to 90% of the purchase price — meaning a $200,000 purchase requires only a $20,000 down payment.

ARV is the estimated value of the property after renovation, determined by comparable sales (comps) of similar renovated homes nearby. Sab Tera Lending caps the total loan at 75% of ARV as a protective margin for both the investor and the lender.

Worked example: Purchase price = $200,000. Renovation budget = $60,000. ARV = $380,000. ARV cap = $285,000 (75% × $380,000). Total needed = $260,000. This deal qualifies because $260,000 is below the $285,000 ARV cap, and it also fits comfortably inside 90% LTV plus 100% rehab funding.

The Renovation Draw Process

Renovation funds are not released all at once. They are held in escrow and released in "draws" as work is completed and verified:

1. Initial draw at closing — a portion may be released for mobilization (permits, demo, initial materials).
2. Draw requests — as each phase completes, the borrower submits a draw request with photos, invoices, and lien waivers.
3. Inspection — an independent inspector verifies work completion, typically within 1-3 business days of the request.
4. Release of funds — upon approval, funds are released within 2–5 business days directly to your account.

Tip: Budget for the fact that renovation funds arrive after work is done, not before. Having working capital for contractor deposits and materials is essential for smooth project execution — this is true at every hard money lender, not just Sab Tera Lending.

True Costs and Fees for Fix & Flip Loans

Understanding the full cost of fix and flip financing is critical for accurate profit projections:

• Interest rate: 9.5%–12% annualized, paid monthly on the outstanding balance only — you're never charged interest on undrawn rehab funds.
• Origination fee: 1–2 points paid at closing (1%–2% of loan amount). Zero upfront fees to begin the process.
• Appraisal/BPO: $300–$600 for residential properties.
• Title and closing: $1,500–$3,000 depending on loan size and state.
• Draw inspection fee: $150–$300 per inspection.
• Prepayment penalty: None. Sell or refinance whenever the project is complete.

Cost example: $200,000 fix and flip loan held for 6 months at 10% = $10,000 interest. Add 2-point origination ($4,000) = $14,000 total financing cost. If your gross flip profit is $80,000, you net approximately $66,000 after financing costs.

Larger deal example: A $450,000 acquisition plus $110,000 rehab budget financed at 90% LTV / 100% rehab comes to a $525,000 total loan. Held for 7 months at 10.5% interest-only, carrying costs run approximately $32,200 in interest plus a 2-point origination fee of $10,500 — a combined financing cost of roughly $42,700. On a project with a $720,000 ARV and a $135,000 projected gross profit, that leaves an estimated net profit near $92,000 after financing, before selling costs.

It's worth budgeting for holding costs beyond the loan itself: property taxes, insurance, utilities, and — if the project runs long — an extension fee if the loan term needs to be extended past its initial 12 months. Most experienced flippers build a 10-15% contingency into their rehab budget specifically to absorb unexpected costs like hidden water damage, code-required upgrades, or permitting delays, since these are the most common causes of a project running over budget or past schedule.

How to Qualify for a Fix & Flip Loan

Qualifying with Sab Tera Lending requires:

• Property address and purchase price
• Scope of work and renovation budget
• ARV supported by comparable sales
• Down payment of roughly 10–20% of purchase price
• Clear exit strategy (sell the property)
• No income verification, W-2s, or tax returns of any kind

There is no credit score minimum, and experience is helpful but not required. We fund first-time flippers with strong deals regularly. The deal quality — purchase price, ARV, and renovation scope — matters more than your track record or credit history. Title can close in an LLC, corporation, or trust, and foreign national investors are eligible without U.S. credit history.

The Fix & Flip Loan Process, Step by Step

Fix & Flip Loans vs. Other Financing Options

Investors often compare a fix and flip loan against three alternatives, each suited to a different strategy:

Fix and flip loan vs. bridge loan: A bridge loan is a shorter-term facility typically used to close on a property quickly before securing permanent financing, often without a defined renovation draw schedule. A fix and flip loan is purpose-built for the acquisition-plus-rehab structure, with draws tied to inspected renovation milestones — it's the better fit whenever a renovation budget and ARV are part of the underwriting.

Fix and flip loan vs. DSCR rental loan: A DSCR loan is a 30-year, long-term facility underwritten on the property's rental income rather than a resale exit. Many investors use a fix and flip loan to acquire and renovate, then refinance into a DSCR loan once the property is stabilized and rent-ready — converting a flip into a long-term hold without ever selling.

Fix and flip loan vs. ground-up construction loan: A construction loan finances new-build projects on vacant or teardown land, with a longer draw schedule tied to framing, mechanical, and finish-out milestones. Fix and flip financing applies to existing structures needing renovation rather than a full rebuild, and it typically closes faster since there's an existing structure to appraise.

Fix and flip loan vs. conventional mortgage: As covered above, conventional financing is built for owner-occupants with verified income and takes 30-90 days. It's rarely a fit for distressed properties or investors who need speed and flexibility over the lowest possible rate.

2026 Fix & Flip Rate & Terms Table

Current published terms for Sab Tera Lending fix and flip financing across all 20 service areas:

Fix & Flip Loans Across Our 20 Service Areas

Sab Tera Lending funds fix and flip loans with the same rates, LTV, and 7-day close in every one of our 20 markets:

View all 20 service areas →

Regional Lending Notes

Northeast (NY, NJ, CT, MA, PA): High acquisition prices and dense multi-family stock make this our highest-volume region. Two-to-four family gut renovations in Long Island, Brooklyn, Queens, and Northern New Jersey routinely produce the strongest ARV spreads in our portfolio, and NYC-commuter demand keeps buyer absorption fast once a renovation lists.

Southeast (FL, GA, NC, SC, AL, VA, TN): Lower entry price points combined with strong population growth make single-family flips in Atlanta, the Carolinas, and South Florida some of the most consistent volume plays in our book. Virginia and Tennessee have seen rising investor interest as buyers priced out of the Northeast relocate south.

Gulf South (LA, MS, KY): These markets carry lower average price points and correspondingly lower loan sizes, but healthy rental demand also makes them a common pipeline into DSCR refinances after a renovation stabilizes a property.

Midwest (OH, IN, MI, PA): Columbus, Cleveland, Indianapolis, and Detroit offer some of the lowest acquisition costs in our footprint, which means 90% LTV financing stretches further and lets investors scale project count without proportionally scaling capital commitment.

Sab Tera Lending vs. 5 Leading Fix & Flip Lenders

We benchmarked our fix and flip program against five of the most-searched hard money lenders in the industry. Published minimums and starting rates below are current as of mid-2026 and are subject to change by each lender.

*Starting rates shown for competitors reflect best-case pricing for the most experienced, highest-credit borrowers on the strongest deals; actual quotes vary and should be confirmed directly with each lender. Sab Tera Lending's 9.5% starting rate and zero credit minimum apply broadly across our underwriting box.

The takeaway: most competitors in this comparison enforce a hard FICO floor between 600 and 680+ before they'll even quote a rate. Sab Tera Lending underwrites the deal — not the borrower's credit history — which is why first-time investors and those rebuilding credit consistently qualify with us when they've been turned away elsewhere.

A Closer Look at Each Competitor

Lima One Capital is a nationally licensed lender backed by institutional capital, active in nearly every state. Its fix and flip program favors borrowers with documented prior exits — investors with multiple completed flips in the last 36 months get the strongest pricing, while newer investors typically land well above the advertised starting rate and may need to prove at least one prior investment property exit to qualify at all.

Kiavi (formerly LendingHome) runs an entirely tech-driven, algorithm-based underwriting model that weighs more than 20 borrower and property inputs. It's a strong fit for investors comfortable with an online-only process and no live loan officer relationship, and it does not require a hard credit pull for an initial rate quote — but its published fix and flip rates commonly run from 9% to 12%, and its minimum credit threshold sits around 640-650.

Easy Street Capital markets one of the lowest published credit floors in the industry and skips third-party appraisals on many fix and flip deals, which can shave several days off closing. The tradeoff is a flat documentation fee (commonly cited around $1,995) added to standard closing costs, and LTV caps that run more conservative than LTC caps on some programs.

RCN Capital is a nationwide wholesale-oriented lender that historically works primarily through mortgage brokers rather than directly with investors, and requires a 650 minimum FICO on its bridge and fix and flip programs. Its ARV loan program can finance up to 100% of the purchase price plus 100% of renovation costs in strong deals, capped at 75% of ARV.

LendingOne positions itself as a full-service investor lender offering fix and flip, DSCR, and portfolio loans under one roof, with an emphasis on transitioning fix and flip borrowers into long-term rental financing after a project completes. Published credit expectations for its short-term programs typically run in the high 600s, and it does not require personal income verification.

Fix & Flip Deal Case Studies

How Your Fix & Flip Rate Is Determined

While Sab Tera Lending's fix and flip program starts at 9.5% with no credit score minimum, your final rate is still shaped by several deal-specific factors:

• Leverage requested: Borrowers requesting the maximum 90% LTV plus 100% rehab funding sit slightly above the starting rate; borrowers bringing more cash to closing can price closer to the floor.
• ARV cushion: A deal priced well under the 75% ARV cap — say 60-65% — is lower risk for the lender and typically prices more favorably than one right at the cap.
• Renovation complexity: A cosmetic refresh (paint, flooring, fixtures) carries less execution risk than a full gut renovation involving structural, electrical, or plumbing work, and prices accordingly.
• Prior investment experience: Completed flips or rental property ownership can improve pricing, though — unlike several competitors — this is a pricing input at Sab Tera Lending rather than an eligibility requirement.
• Loan size and term: Larger loans and shorter terms sometimes access modestly better pricing given lower absolute carrying risk to the lender.

Because none of these factors involve a personal credit score, two borrowers with very different FICO profiles but comparable deals can receive comparable pricing — a structural difference from lenders that grade pricing tiers primarily off credit score bands.

Renovation Budget Categories Explained

A well-organized scope of work speeds up both initial underwriting and every draw request that follows. Most rehab budgets break into these categories:

• Demolition & site prep: Removing existing finishes, debris haul-away, and any structural demo needed before new work begins.
• Structural & exterior: Roof, siding, windows, foundation repair, and any load-bearing work.
• Mechanical, electrical & plumbing (MEP): HVAC systems, electrical panel and wiring updates, and plumbing repiping or fixture replacement.
• Interior finishes: Flooring, drywall, paint, trim, doors, and cabinetry.
• Kitchen & bath: Often the highest-ROI renovation category and typically the largest line item after structural work.
• Landscaping & curb appeal: Exterior paint, landscaping, and driveway or walkway repair — inexpensive relative to its impact on first-showing impressions.
• Contingency: A 10-15% buffer against hidden conditions uncovered once demo begins, such as water damage, pest issues, or outdated wiring behind walls.

Organizing the budget this way also makes draw requests faster to process, since each draw can be tied cleanly to one or more completed categories with corresponding photos and invoices.

Documents You'll Need to Apply

Because Sab Tera Lending does not require income verification, the application package is far lighter than a conventional mortgage. A typical fix and flip submission includes:

• Signed purchase agreement or fully executed contract for the target property.
• Itemized scope of work listing each renovation line item and its estimated cost.
• Comparable sales (comps) supporting the projected after-repair value.
• Government-issued ID for every individual on the loan.
• Entity documents (operating agreement, articles of organization) if closing in an LLC, corporation, or trust.
• Proof of down payment funds, such as a recent bank or brokerage statement.
• Prior closing statements, if available, for investors with completed flips — helpful but never required for a first-time borrower.

Because no tax returns, W-2s, or pay stubs are required, most complete applications can be assembled in a single afternoon, which is part of why Sab Tera Lending can issue a same-day commitment once the package is in hand.

A Closer Look at All 20 Service Areas

Every market below receives the same 9.5% starting rate, 90% LTV, 100% rehab funding, same-day commitment, and 7-day close:

• New York: All five boroughs plus Westchester; dense multi-family stock drives strong 2-4 unit flip volume.
• Long Island: Nassau and Suffolk counties; our single highest-volume market by loan count.
• New Jersey: Bergen, Essex, and Passaic counties lead on NYC-commuter demand and premium ARVs.
• Connecticut: Fairfield County's Greenwich, Westport, and Darien support high-ARV renovations for an affluent buyer base.
• Florida: Miami and Fort Lauderdale post some of the fastest resale absorption in our footprint.
• Texas: Houston, Dallas, and Austin combine population growth with a healthy inventory of dated single-family stock.
• North Carolina: Charlotte and Raleigh have seen steady in-migration supporting flip resale values.
• South Carolina: Charleston and Greenville offer lower entry prices with solid buyer demand.
• Georgia: Atlanta's large inventory of older single-family homes is one of our most active flip markets nationally.
• Alabama: Birmingham and Huntsville provide low-basis acquisition opportunities for scaling investors.
• Virginia: Northern Virginia's DC-metro spillover demand supports strong renovation resale values.
• Kentucky: Louisville offers accessible entry pricing for first-time flippers scaling their first few deals.
• Louisiana: New Orleans' historic housing stock supports both flip and rental exit strategies.
• Mississippi: Lower loan sizes make 90% LTV financing especially capital-efficient for volume investors.
• Massachusetts: Greater Boston's tight inventory keeps renovated-property demand consistently strong.
• Michigan: Detroit's low acquisition costs let investors stretch financing across more simultaneous projects.
• Pennsylvania: Philadelphia and Pittsburgh both offer dense, renovation-ready rowhome and single-family inventory.
• Tennessee: Nashville's continued population growth keeps renovated-home absorption fast.
• Indiana: Indianapolis combines low entry pricing with steady rental and resale demand.
• Ohio: Columbus and Cleveland are among our lowest-basis markets, ideal for scaling deal volume.

A Realistic Week-by-Week Timeline

While every project differs, a typical fix and flip financed by Sab Tera Lending follows a rhythm close to this:

• Week 1: Application submitted, same-day commitment issued, appraisal or BPO ordered, title work opened.
• Week 1-2: Loan closes at the title company; initial mobilization draw released if applicable; demolition and permitting begin.
• Weeks 2-8: Structural, MEP, and major systems work completed in phases, with draw requests submitted and funded every 1-3 weeks as inspected milestones are reached.
• Weeks 8-14: Interior finishes, kitchen and bath installation, and exterior/curb appeal work wrap up; final draw released after final inspection.
• Weeks 14-16: Property is listed, staged, and marketed for resale (or prepared for a DSCR refinance appraisal if the plan is to hold).
• Weeks 16-24: Property goes under contract and closes, and the fix and flip loan is repaid in full from sale proceeds — or the investor refinances into permanent financing.

Projects with lighter cosmetic scopes often complete faster than this timeline, while full gut renovations — especially those requiring permitting for structural or electrical work — can run longer, which is exactly why building schedule and interest-cost contingency into the underlying numbers matters before closing.

Refinancing Out of a Fix and Flip Loan

Not every renovated property gets sold. When a project stabilizes into a strong rental — good tenant demand, healthy rent-to-value ratio, and a renovation that supports long-term occupancy — many Sab Tera Lending borrowers refinance directly into a DSCR rental loan rather than listing the property for sale. Because DSCR underwriting is based on the property's rental income rather than the borrower's personal income, the same no-income-verification approach carries through from the fix and flip stage into the long-term hold. This "flip-to-rental" exit is common enough that Sab Tera Lending structures both products to hand off smoothly, without requiring a second full underwriting relationship to be built from scratch.

Top Fix & Flip Markets in 2026

Our most active fix and flip markets and what makes them strong:

• Long Island, NY — Median price $680K, average flip profit $92K. Nassau County is our highest-volume market.
• New York City — Brooklyn, Queens, and the Bronx offer strong margins on gut renovations of 2–4 family homes.
• Northern New Jersey — Bergen, Essex, and Passaic counties. NYC commuter demand drives premium ARVs.
• Fairfield County, CT — Greenwich, Westport, Darien. High ARVs ($1M–$2.5M) and an affluent buyer base.
• South Florida — Miami, Fort Lauderdale. Strong flip volume and rapid resale absorption.
• Atlanta, GA — Large inventory of older homes, strong buyer demand, $61K average flip profit.
• Columbus & Cleveland, OH — Low entry price points make 90% LTV financing especially effective for scaling volume.

Why a Direct Lender Matters More Than It Sounds

"Direct lender" is easy to skim past, but it changes how a deal actually gets approved. A broker takes your application and shops it to one or more capital sources, adding a layer of negotiation, paperwork duplication, and — in many cases — an additional fee, between you and the money. A direct lender like Sab Tera Lending funds from its own capital and makes the credit decision in-house, which removes an entire step from both the approval and the closing timeline. It also means the person underwriting your deal has full authority to negotiate terms on the spot, rather than needing to check back with a separate capital partner before confirming a rate or leverage point. RCN Capital's wholesale-broker model is a useful contrast here: its programs are widely available through mortgage professionals, but an investor working directly with RCN may still be routed through a broker relationship depending on the market.

Fix & Flip Market Conditions Heading Into Late 2026

Average bridge and fix and flip loan rates industry-wide have eased somewhat from their 2023-2024 peak, tracking a broader decline in benchmark interest rates. That said, published "starting rates" across the industry still typically apply only to the most experienced borrowers with the strongest credit and the largest completed-flip count — most active investors land meaningfully above a lender's advertised floor. Inventory of distressed, dated, and estate-sale properties remains healthy across most of Sab Tera Lending's 20 markets, particularly in the Southeast and Midwest, where population growth and lower acquisition costs continue to support strong flip margins. Investors who can move quickly on a deal — meaning same-day commitment and a true 7-day close, not just an advertised one — continue to have a structural advantage over cash-strapped or bank-financed competition in every market we serve.

Fix & Flip Loan Glossary

Key terms that come up throughout any fix and flip financing conversation:

• ARV (After-Repair Value): The estimated market value of a property once renovation is complete, based on comparable sold listings.
• LTV (Loan-to-Value): The loan amount expressed as a percentage of the property's current, as-is value.
• LTC (Loan-to-Cost): The loan amount expressed as a percentage of total project cost — purchase price plus renovation budget combined.
• Draw: A partial disbursement of renovation funds released after a completed phase of work is inspected and verified.
• Origination points: An upfront fee charged by the lender, expressed as a percentage of the loan amount, paid at closing.
• Interest reserve: Funds set aside, sometimes financed into the loan, to cover monthly interest payments during the renovation period.
• Exit strategy: The borrower's plan to repay the loan — typically sale of the renovated property or refinance into a long-term DSCR loan.
• Scope of work (SOW): An itemized breakdown of every planned renovation task and its associated cost, submitted with the loan application.

Common First-Time Flipper Mistakes to Avoid

Most financing problems on a first flip trace back to a handful of avoidable errors:

• Underestimating the rehab budget. Skipping a 10-15% contingency line is the single most common cause of a project running out of funds mid-renovation.
• Overestimating ARV. Using comps from a different school district, condition tier, or square footage band inflates the projected sale price and can push a deal past a lender's ARV cap.
• Underbudgeting for holding costs. Property taxes, insurance, utilities, and loan interest accrue every month a project runs — a 3-month schedule slip can meaningfully erode profit.
• Not lining up a general contractor before closing. Draw requests move faster when the contractor relationship, permits, and initial material orders are already in motion at closing.
• Choosing the lowest rate over certainty of close. A slightly higher rate from a direct lender that reliably closes in 7 days is often worth more than a lower rate from a lender with a slower, less predictable underwriting process — especially on a competitive acquisition.

A Full Deal Analysis Walkthrough

Here's how a complete fix and flip deal gets analyzed from offer to closing, using a representative $265,000 acquisition in a mid-sized Southeast market:

Step 1 — Establish the numbers. The property is listed at $275,000; the investor offers $265,000 and it's accepted. A licensed contractor walks the property and estimates $58,000 for a full cosmetic renovation: kitchen, both bathrooms, flooring throughout, paint, and landscaping. Three recent comparable sales of similarly renovated homes within a half-mile support a $410,000 ARV.

Step 2 — Check the ARV cap. At 75% of $410,000, the maximum total loan is $307,500. Total project cost is $265,000 + $58,000 = $323,000. Since $307,500 is below $323,000, the loan is sized to the ARV cap rather than the full project cost, meaning the investor brings the $15,500 difference to closing in addition to any standard down payment on the LTV side.

Step 3 — Check the LTV/LTC side. At 90% LTV on the $265,000 purchase, the loan funds up to $238,500 toward acquisition, requiring roughly $26,500 down. Combined with 100% rehab funding up to the ARV cap, the investor's total cash into the deal — down payment plus the ARV-cap gap plus estimated closing costs — lands in the $45,000-$50,000 range.

Step 4 — Model the carrying cost. At a 9.5% interest-only rate with 2 origination points, a $307,500 loan held for 5 months carries approximately $12,170 in interest plus a $6,150 origination fee — a combined financing cost near $18,320.

Step 5 — Model the exit. If the property sells at the $410,000 ARV, after a typical 6% selling cost (agent commissions and closing costs) of about $24,600, the investor nets $385,400 in proceeds. Subtracting the $307,500 loan payoff, the $18,320 in financing costs already factored into the loan draw, and the investor's approximately $45,000-$50,000 cash contribution, the projected net profit lands in the $12,000-$18,000 range after every cost is accounted for — a modest but real margin that illustrates why accurate ARV and rehab estimates matter more than the headline purchase price.

This kind of line-by-line walkthrough — run before an offer is even submitted — is the single best way to avoid discovering a thin or negative margin only after a project is already underway.

Frequently Confused Terms: LTV vs. LTC vs. ARV

These three terms get mixed up constantly, and mixing them up leads to bad back-of-napkin math on a deal. LTV (Loan-to-Value) measures the loan against the property's current, as-is value — useful for understanding your down payment on the acquisition side alone. LTC (Loan-to-Cost) measures the loan against total project cost, meaning purchase price plus renovation budget combined — this is the number that matters when you're trying to figure out total cash needed for a project with a meaningful rehab component. ARV (After-Repair Value) isn't a leverage ratio at all — it's the projected finished value the whole deal is underwritten against, and it's what caps how large a loan can be regardless of what LTV or LTC alone would otherwise allow. A deal can look great on an LTC basis and still get capped hard by a conservative ARV, which is exactly what happened in the worked walkthrough above — always run the ARV cap check before assuming a quoted LTV or LTC percentage tells the whole story.

Is a Fix & Flip Loan Right for You?

A fix and flip loan makes sense when you have identified a specific distressed property, have a realistic renovation budget and timeline, and plan to sell (or refinance) within roughly 6-12 months. It is generally not the right tool for a property you intend to hold as a long-term rental from day one — a DSCR loan is typically a better and cheaper fit for that strategy, though many investors still start with fix and flip financing to fund the renovation and refinance into a DSCR loan once the property is rent-ready.

What Investors Say

Why Investors Choose Sab Tera Lending

Across every service area, the same core terms apply without exception: no credit score minimum, no income verification, a same-day commitment, and a 7-day close. Zero upfront fees and zero prepayment penalties mean an investor can start the process risk-free and exit on their own timeline once a project sells or refinances. LLC, corporation, and trust title is accepted alongside individual borrowers, and foreign national investors are eligible without U.S. credit history — flexibility that consistently sets Sab Tera Lending apart from the lenders profiled in the comparison table above. As a direct lender funding from its own capital, there's no broker layer and no third-party committee slowing down underwriting, which is what makes same-day commitments and 7-day closings possible on a repeatable basis across all 20 markets we serve.

For investors evaluating multiple lenders side by side, the practical test is simple: request a term sheet on the same real deal from each lender and compare not just the headline rate, but the credit requirements, documentation burden, and realistic time-to-close. A slightly higher published rate from a direct lender that reliably funds first-time investors, foreign nationals, and borrowers with imperfect credit is frequently the better economic outcome once a deal that would otherwise be declined elsewhere actually closes and completes. That's the comparison Sab Tera Lending is built to win, market after market, deal after deal.

Insurance & Legal Considerations

Every fix and flip loan requires a builder's risk or vacant-property insurance policy naming the lender as loss payee for the duration of the renovation — a standard homeowner's policy typically will not cover a vacant property under active construction. Title insurance is also required at closing, and most investors hold title in an LLC specifically to separate the liability of an active renovation project from their personal assets. If contractors or subcontractors are working on the property, confirm they carry their own general liability and workers' compensation coverage; a lender-required inspection can flag gaps here before a draw is released.

Working With a General Contractor: What Lenders Look For

A lender evaluating your renovation plan is really evaluating execution risk, and your general contractor relationship is a big part of that. A detailed, itemized scope of work with realistic per-category costs signals a well-planned project; a vague one-line "renovate house — $80,000" estimate signals the opposite and often triggers additional underwriting questions before approval. It also helps to have a signed contractor agreement with a payment schedule that lines up with the loan's draw schedule, since misaligned payment expectations between you and your contractor are a common source of mid-project friction. Licensed, insured contractors with a documented track record on similar-scope projects also tend to move draw inspections along faster, since inspectors have less to flag.

Tax Considerations for Flippers

Profit from a fix and flip is generally treated as ordinary income rather than long-term capital gains, since the IRS typically views frequent flipping as an active trade or business rather than a passive investment — this is a meaningful distinction from buy-and-hold rental income, which can benefit from depreciation and, on sale, long-term capital gains treatment if held over a year. Financing costs, including loan interest and origination points, are generally deductible as business expenses, and many investors hold flips inside an LLC or S-corp structure specifically to manage self-employment tax exposure on flip profits. None of this is tax advice — every investor's situation differs based on entity structure, project frequency, and state tax rules, so a conversation with a CPA before scaling flip volume is time well spent.

Frequently Asked Questions — Fix & Flip Loans

The questions below reflect what investors most often ask before applying for fix and flip financing with Sab Tera Lending — from rates and LTV to credit requirements and closing speed.

Whatever stage of the process you're evaluating — running numbers on a first potential flip, comparing lenders on an active deal, or scaling from one project to several running at once — the fastest way to know where you actually stand is to submit the real numbers and get a same-day answer rather than continuing to model hypotheticals. Sab Tera Lending's underwriting team reviews every submission personally, and because there's no credit score minimum and no income documentation to gather first, most investors can go from a cold submission to a signed term sheet the same afternoon.