How to Get a Fix and Flip Loan: Step-by-Step Process

The fix and flip process starts with finding a distressed property (foreclosure, estate sale, off-market deal, etc.). Once you have a property under contract, calculate the after-repair value (ARV): what will the property sell for after full renovation? Use comparable sales (comps) in the area, not current as-is price. Example: property purchased at $250k, needs $50k in rehab, ARV $350k. LYNK Mortgage will order an appraisal to verify ARV is realistic. Conservative ARVs are critical; overestimating ARV is the #1 reason flips fail. Use experienced contractor estimates (not DIY guesses) for repair budgets.

Create a detailed rehab budget: roof, HVAC, plumbing, electrical, flooring, paint, permits, inspections, holding costs (utilities, taxes, insurance), realtor commission (6%), and a 10% contingency buffer. Example: $50k budget might be $8k roof, $7k HVAC, $6k plumbing, $5k electrical, $5k flooring/paint, $3k permits, $3k holding, and $13k contingency. Total project cost: purchase price ($250k) + rehab budget ($50k) = $300k, plus about $7.5k in closing costs. LYNK Mortgage sizes the loan at the lowest of three limits: a share of the as-is value, loan-to-cost (LTC: the loan divided by total project cost), and a share of the ARV. On Prime light-rehab terms, those limits are up to 90% of the $250k as-is value ($225k) plus the $50k rehab through draws ($275k), 92% LTC ($276k), and 75% of the $350k ARV ($262.5k). The lowest wins, so the loan is $262.5k and you bring about $37.5k plus closing costs. The headline 95% LTC is reserved for experienced investors with strong credit on Expanded light-rehab loans of $250K+. This is asset-based: we care whether the deal pencils, not your personal income.

Apply with: purchase contract, contractor estimates (itemized), comparable sales (3-5 recent comparable flips in the area), photos of property as-is, ARV estimate (appraisal-ready), proof of funds (about $37.5k down plus closing costs, and a 10% contingency for your reserve), timeline (acquisition date, expected rehab duration, expected sale date). LYNK Mortgage reviews the deal economics; if ARV is defensible and budget is reasonable, we order appraisal. If deal doesn't pencil (ARV too low, rehab budget too high, exit unsure), we decline. Pre-qualification can happen in 1-2 days with basic info; full approval takes 5-7 days after appraisal.

LYNK Mortgage closes in 7–15 days typical from appraisal. At closing, the loan funds its share of the purchase price; you bring your down payment and closing costs. Rehab funds are held in escrow and drawn in stages as work completes. Typical draw structure: 25% upon framing, 50% upon mechanical completion, 100% upon final inspection. You submit invoices and photos; LYNK Mortgage's inspector verifies work, releases draws. This protects you and LYNK Mortgage: you don't pay contractors upfront, funds are released as milestones hit. You make monthly interest-only payments during the term (typically up to 12 months), then you sell and pay off the balance.