A fix-and-flip loan is a short-term, interest-only loan that pays for the purchase at closing and releases the rehab budget in draws as work is completed. You repay it when you sell, usually within 12 months. At Clion Capital, loans cover up to 92.5% of cost, rates start at 9.00%, and we close in 7 to 10 business days.
What Happens at Each Stage of a Fix-and-Flip Loan?
- Quote. You submit the address, price, rehab budget and ARV. We issue a term sheet within 24 hours.
- Underwriting. We order an appraisal with an after-repair value, review the scope of work and verify your experience.
- Closing. The loan funds the purchase portion. The rehab portion is held for draws.
- Rehab and draws. You complete work, request a draw, and we inspect within 24 hours before releasing funds.
- Exit. You sell the home and the loan is paid off at closing, or you refinance into a long-term rental loan.
The typical flip took 161 days from purchase to resale in Q2 2026 (attomdata.com), so a 12-month term leaves room for delays.
What Are the Key Terms to Understand?
| Term | What it means | Clion Capital |
|---|---|---|
| Loan-to-cost (LTC) | Loan as a share of purchase plus rehab | Up to 92.5% |
| After-repair value (ARV) | Value once the work is done | Up to 90% of ARV |
| Rehab funding | Share of renovation budget covered | 100%, paid in draws |
| Interest rate | Annual rate, interest-only payments | From 9.00% |
| Origination | Upfront fee as a share of the loan | From 1.00% |
| Underwriting fee | Flat processing fee | $999 |
| Closing time | Application to funding | 7 to 10 business days |
How Do Lenders Decide Whether to Approve You?
Fix-and-flip lenders underwrite the deal first. They look at the purchase price, the rehab budget, the ARV and your plan to finish and sell. They also review credit and experience, but most do not verify personal income.
That is because these are business-purpose loans, which fall outside most consumer mortgage rules under Regulation Z (consumerfinance.gov). It is why we can approve investors without tax returns or W-2s. See our guide to fix-and-flip loans without tax returns.
What Does a Fix-and-Flip Loan Cost in Practice?
On a $286,750 loan held six months at 10%, interest is about $14,300 if the full balance is out the whole time. Add 1.5% in points and the $999 fee, and total financing cost is about $19,600.
Against a typical gross flip profit of $60,526 in Q2 2026 (attomdata.com), that cost is meaningful, which is why the buy price matters so much. October has historically carried the lowest premium of any month to buy, at 7.0% above market value (attomdata.com). Buy well and the loan pays for itself.
How Do You Get Started?
Line up three things before you apply: a property under contract or a target price, a line-item rehab budget, and recent sold comparables to support the ARV. Then get your rate instantly at apply.clioncapital.com with no hard credit pull.
New to flipping? Read our guide to financing your first flip. Planning a bigger project? See how much you can borrow.
Frequently Asked Questions
How long is a fix-and-flip loan?
Most fix-and-flip loans run about 12 months, with extension options at some lenders. The typical flip took 161 days in Q2 2026, according to ATTOM.
Are fix-and-flip loans interest-only?
Yes, most are. You pay interest only on the funds that have been released, and repay the principal when you sell or refinance.
What credit score do I need for a fix-and-flip loan?
Requirements vary. Credit affects pricing and leverage, but the deal itself drives the approval. Clion Capital uses asset-based underwriting with no income verification.
How are rehab funds paid out?
In draws. You complete a phase of work, request a draw, the lender inspects and the funds are released. Clion Capital completes draw inspections within 24 hours.
What happens if my flip does not sell?
You can refinance the finished property into a long-term DSCR rental loan and rent it out. Clion Capital offers both loan types.
Last updated October 27, 2026.
Sources and References
- ATTOM: Q2 2026 U.S. Home Flipping Report
- CFPB: Regulation Z §1026.3, Exempt Transactions
- ATTOM: Best Days and Months to Buy a Home
- Clion Capital: fix-and-flip loan programs
About the Author
Clion Capital is a direct private lender for professional real estate investors, offering fix-and-flip, bridge, new construction and DSCR rental loans. Our principals work directly with every borrower, and 70% of our business comes from repeat clients. See your rate instantly at apply.clioncapital.com or learn more about Clion Capital.