Fix and Flip Loan Requirements: Documents and Cash

Updated October 2026

Fix and flip loan requirements center on the property, the work, the cash available, and how the loan will be repaid. You need a non-owner-occupied investment, evidence for its finished value, a repair budget, and funds for costs the loan does not cover. Credit and experience are part of the review, even when the property drives the decision.

Jaken Finance Group’s published flip terms are 8.99%–13.5% interest-only for 6–12 months. Qualified files up to $2.5M may receive up to 100% of eligible costs, capped at 75% of after-repair value. Those are program limits. Your approved amount and conditions depend on the full file.

Start with these six facts

A first review works best when the numbers describe a specific property. Send these facts through the fix-and-flip form:

Fact	What to provide
Property	Address, type, current condition, and whether anyone occupies it
Purchase	Contract price, deposit paid, closing date, and any assignment fee
Repairs	Line-item budget, contractor status, and expected work period
Finished value	Expected sale price and comparable sales that support it
Available cash	Funds for closing, loan payments, repairs before draws, and overruns
Borrower and exit	Prior projects, ownership entity, existing debt, and sale or rental plan

Start with what you know. If a bid is not final, mark it as an estimate. If funds are tied up in another deal, say when they may be free. The seller’s asking price is a starting point; sold homes are better proof of value. Clear gaps are easier to review than a file that looks complete but is not.

Build a document package that matches the deal

The full checklist depends on the selected program. Prepare these items so the lender can resolve open questions without repeated requests:

1. Purchase documents. Include the signed contract, amendments, assignment agreement if present, and deposit receipt. Show the deadline and any extension rights.
2. Work scope. List each task, its cost, who will do it, and when payment is due. Separate repairs from additions or major structural work.
3. Value support. Provide recent sold comparables and explain size, condition, location, and finish differences. The lender still decides which valuation it accepts.
4. Funds and ownership. Have current bank statements and entity documents ready. Disclose partners, other projects using those funds, and the source of any borrowed money.
5. Contractor and property records. Gather bids, insurance details, permits or permit plans, and records for any unresolved title or use issue.
6. Repayment plan. Show how the expected sale or rental refinance can pay off the loan, with fees and time left in the budget.

Use how to submit a scope of work for a repair package. Ask for a secure upload method before sending bank statements or identity documents. Initial scenario details are enough to start the conversation.

How the lender checks the property and rehab

No appraisal required on select bridge and fix-and-flip programs for experienced sponsors with documented ARV comps. Standard programs use third-party valuation.

The finished value has to match the work you plan to complete. A basic rental finish will not support a comparison with a newly built luxury home just because both have three bedrooms. Explain large differences before they become a lower appraisal.

The budget should include tasks needed to make the property safe, lawful, and saleable. Ask the local building department about permits and inspections. For older houses, check the EPA’s renovation requirements with the contractor. Covered work that disturbs paint in pre-1978 housing generally requires certified firms and lead-safe practices.

A manufactured home, condo, occupied property, or heavy structural rehab may need a different review from a vacant single-family house. Use the manufactured-home flip guide for that property type. Disclose current occupancy and any unresolved access issue; a work schedule cannot start until crews can legally enter and perform the work.

Credit, experience, and funds work together

Credit-flexible underwriting with no minimum FICO on select programs. Approval is collateral-first — driven by ARV, LTC, scope, liquidity, and exit strategy. We may pull credit to review trends, but FICO is not the primary approval driver.

A flexible credit review still checks open debt, recent payment problems, and the cash needed to finish the work.

First-time investors can request review. Show who will manage the repairs and how that person will handle delays. If you have completed projects, provide addresses, your role, costs, and exit results. Evidence of completed work helps more than a claimed deal count without records.

For a first project, choose a scope you can explain and fund. Maximum leverage is not assured. The beginner’s flip loan guide covers preparation, while foreign-national flip loans explains additional cross-border documents.

Calculate both borrower equity and cash to close

Loan-to-cost, or LTC, measures the loan against eligible project costs. ARV means after-repair value. The approved amount must fit both the cost limit and the value limit, and underwriting can reduce it further.

This hypothetical example uses an 85% LTC assumption for planning, not a published approval tier:

Item	Calculation	Amount
Purchase	Agreed price	$175,000
Approved rehab budget	Planned work	$50,000
Eligible project costs	Purchase plus rehab	$225,000
ARV	Assumed supported finished value	$300,000
Value cap	75% × $300,000	$225,000
Loan at illustrative 85% LTC	85% × $225,000	$191,250
Borrower equity	$225,000 − $191,250	$33,750
Illustrative two points	2% × $191,250	$3,825
Other closing costs	Assumed for this example	$3,000
Total closing contribution	Equity plus costs	$40,575
Deposit already paid	Credited once at closing	($5,000)
Remaining closing funds	After the deposit credit	$35,575

The example assumes the full rehab budget is held back and the equity contribution is collected at closing. Your lender’s funding schedule may differ. The deposit reduces the remaining wire; it does not reduce total project costs.

Keep cash available after closing

The $40,575 contribution above is not the whole cash plan. At an illustrative 11% rate, interest on the full $191,250 would be about $1,753 per month. Three months would be about $5,259. Actual interest depends on the contract and funded balance.

Add cash for taxes, insurance, utilities, repair overruns, and bills due before the lender pays a draw. For example, a contractor’s $7,500 first-stage bill creates a $7,500 temporary cash need if that work must be completed before reimbursement. Do not assume the rehab holdback pays the contractor’s deposit upfront.

Any required reserve must also remain available. Ask whether a reserve is simply verified or held by the lender, and whether it overlaps with costs already in your plan. Avoid counting the same cash toward two obligations. Review the draw process and model the project in the flip calculator.

If you need maximum purchase and rehab funding, the 100% financing guide explains why a full-cost loan can still require substantial cash.

Choose an exit the loan can support

For a sale, budget repairs, marketing time, commissions, seller costs, and the loan payoff. Test a lower sale price and a later closing. Gross price growth is not the same as profit after these costs.

For a rental hold, check the DSCR refinance path before taking a short-term loan. Rent, value, taxes, insurance, and refinance costs determine whether the later loan can repay the first. A planned refinance is not an approved exit.

If the loan will mature before your exit, address the gap early. Read what happens when a hard money loan matures rather than assuming an extension will be granted.

When to change the plan before applying

Problem	Practical response
You intend to occupy the home	Speak with an owner-occupied mortgage lender
The requested loan exceeds the value cap	Reduce the request, add equity, or renegotiate the purchase
There is no cash left after closing	Rework the funding and draw schedule before committing
The property is already a stable rental	Compare DSCR rental financing
A second loan will fund the gap	Disclose it and confirm the first lender permits the structure
Another lender reduced terms late	Send the prior terms for a Second Look review

Submit a file that can get a useful answer

Submit the property and budget with available cash and the real closing deadline. Flag missing documents, prior lender issues, and any existing liens. That lets the review focus on whether the file can close and what must change first.

The published closing window is 7–10 business days on qualified complete files after borrower conditions are met. Third-party valuation, access, title, and insurance can affect that timing. Rates and terms can change; all loans require underwriting. Residential investment products are non-owner-occupied only.