What is a fix-and-flip loan?
A fix-and-flip loan is short-term financing used to purchase (or refinance) and renovate an investment property before reselling it. KREC funds up to 95% of the purchase price with rehab funds released in draws, on terms of 6 to 24 months, with rates starting at 7.75% and loan amounts from $75K to $10M.
Answered by the Key Real Estate Capital lending team · Updated August 2026
How it works
Two numbers drive the structure: the total cost of the project (purchase plus renovation) and the after-repair value (ARV) — what the property should be worth once the work is complete. KREC lends up to 100% of purchase plus 100% of rehab on a loan-to-cost basis, capped at 75% of after-repair value.
Renovation money is not handed over at closing. It is released as draws as work is completed, which protects both the lender and the project budget. KREC funds fix and flip loans with no up-front fees, no appraisal, and no income verification, and no prior experience is required.
Key considerations
- A detailed, line-item renovation budget is required — it sets the draw schedule and the loan amount.
- Terms run 6, 9, 12, 18, or 24 months, so the renovation and resale must fit the term.
- Minimum FICO is 600, with lower considered on exception.
- Eligible property types include single-family, condo, and multifamily.
- The exit strategy — resale or refinance — needs to be defined before closing.
Who it may be for
Investors buying a property that needs work, where a conventional lender will not finance the renovation.
Operators running multiple projects who need speed and predictable draw funding.
First-time flippers — no prior experience is required on this program.
Related KREC financing options
Fix & Flip Loans
Rates from 7.75%, $75K to $10M, up to 95% of purchase price, rehab funded through draws, 6 to 24-month terms.
View fix & flip loans detailsBridge Loans
For acquisitions where timing, not renovation, is the constraint.
View bridge loans detailsFrequently asked questions
Common follow-up questions about fix and flip loans.
Ready to talk through your deal?
Share the property and your plan, and a KREC loan specialist will outline the financing structures that fit.