What Are the Typical Interest Rates and Loan Terms for Fix and Flip Loans?

What Are the Typical Interest Rates and Loan Terms for Fix and Flip Loans?

Fix and flip loan terms vary depending on the lender, borrower experience, and property location, but they generally have a short duration (6-18 months) and require higher interest payments than traditional mortgages.

Interest rates for fix and flip loans typically range from 8% to 14%, depending on factors such as the investor’s experience, creditworthiness (if applicable), and the risk level of the project. The loan-to-value (LTV) ratio typically covers 70-90% of the purchase price and up to 100% of renovation costs, making it easier for investors to acquire distressed properties without significant upfront capital.

Securing Competitive Interest Rates for a Foreign Investor
A foreign investor from Mexico secured a fix and flip loan through Lendai’s online financing portal for a property in California. Due to a strong ARV assessment, the investor qualified for a lower 9% interest rate and 80% LTV, enabling them to finance the project with minimal upfront costs.

For experienced investors, securing better rates and terms is possible, while first-time flippers should prepare for larger down payments and slightly higher interest rates.

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