Blog
Fix and Flip Loans Explained: What Investors Need to Know in 2026
By Jason Taken · Principal, Jaken Finance Group
Fix and flip loans in 2026 — LTC, ARV, IO carry, draw schedules, and lender selection. How hard money funds renovation deals nationwide.
A fix and flip loan funds purchase plus renovation of a distressed property you intend to resell for profit — typically interest-only over 4–9 months. Banks rarely touch these files; hard money is the standard tool.
Updated data: See Fix-and-Flip Statistics 2026 and Average Fix-and-Flip Rehab Costs 2026 for ATTOM-sourced benchmarks.
This 2026 guide replaces generic lender advice with current leverage bands, links to the fix and flip calculator, and market context from our Chicago mid-year flip check and top 10 flip cities posts.
How fix and flip loans work
| Component | Typical 2026 structure |
|---|---|
| Leverage | 85%–90% LTC on qualified files |
| ARV cap | 70%–75% of after-repair value |
| Rate | 9.5%–11.5% interest-only |
| Rehab | 100% holdback in milestone draws |
| Close | 7–12 business days |
| Exit | Retail sale — model 7%–9% sale friction |
Profit formula: ARV − sale costs − loan payoff − cash in − IO carry = net spread. Run numbers before LOI — thin spreads pivot to BRRRR via DSCR calculator.
Fix and flip vs other products
| Product | When to use |
|---|---|
| Hard money fix-and-flip | Distressed acquisition + rehab + resale |
| Bridge loan | Stabilized hold, listed flip, or gap to refi |
| DSCR | Permanent debt after lease-up — not acquisition rehab |
| Conventional | Turnkey rental — not gut rehabs |
See bridge loans vs hard money.
Where to get a fix and flip loan
Hard money lenders (like Jaken) underwrite on deal economics — not FICO alone. Avoid chasing the lowest rate on a file that will not close.
Program hubs:
- Fix and flip loans Illinois · Chicago
- Fix and flip loans Florida · Georgia
- What is a hard money loan — nationwide overview
Compare execution in Jaken vs Kiavi fix-and-flip comparison.
How to get approved (checklist)
- Entity — LLC vesting and EIN
- Comps — three sold ARV supports (see ARV guide)
- Scope — line-item SOW (templates · submission guide)
- Liquidity — earnest, carry, draw float
- Exit — resale pro forma or BRRRR pivot
Get pre-qualified · Submit flip scenario · Loan process
Draw process after close
Rehab funds release on inspection-approved milestones — not one wire at closing. Read fix-and-flip draw process before you schedule contractors.
Funded example: North Charleston Park Circle flip — 90% LTC, ~$34K net after carry.
Common mistakes on flip loans
- Inflated ARV
- Single-line rehab budget
- No contingency on auction/estate buys
- Ignoring extension fees
Full list: hard money loan mistakes.
Pre-Qualify for Fix and Flip Financing · Free financing playbook · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers. Jaken Finance Group only finances non-owner occupied investment properties.