Home / Loan programs / Fix and flip loans
Fix and flip loans in Charleston, SC
Bridge financing for investors who buy, renovate and resell. One loan covers up to 90% of the purchase and the entire rehab budget.
Fix and flip loan terms
| Purchase financed | up to 90% |
| Rehab financed | up to 100% |
| Cap on after-repair value | 70 to 75% |
| Credit scores from | 600 |
| Term | 6 to 24 months |
| Payments | interest only |
| Average closing | 21 days or less |
The 90% and 100% figures apply at a 720+ credit score. Below that, leverage and pricing adjust down to a 600 minimum.
How the loan amount is worked out
The loan is built from two numbers. The first is a share of what you pay for the property. The second is your renovation budget, which is held back and paid out in draws as each stage of work is finished. The two together are limited to 70 to 75% of the after-repair value (ARV): the price the property should bring once the work is complete.
Example
| You buy the house for | $420,000 |
| Your rehab budget is | $120,000 |
| Expected resale value (ARV) | $725,000 |
| 90% of the purchase | $378,000 |
| 100% of the rehab | $120,000 |
| Loan amount | $498,000 |
| 75% of ARV, the ceiling | $543,750 |
| Down payment, before closing costs | $42,000 |
How experience and credit change the terms
- First deal? You can still qualify. A new investor with a 720+ score is eligible for the full 90% and 100%.
- Five or more flips in the past two years? You can close with no inspection and no appraisal, up to 75% of ARV.
- Score under 720? Programs run down to 600, with less leverage.
Experience is counted as properties you bought and sold in the past 24 months that were acquired within the past 36 months.
Built around a resale
- Interest-only payments while you renovate
- 6 to 24 month terms
- No prepayment penalty: pay off the day you sell
- No income or job verification
When a project stalls: mid-rehab loans
If a renovation is under way and the money has run out, a mid-rehab loan lends on the property as it stands today and adds the funds to finish.
What a Charleston flip involves
- Historic review. On the peninsula and in other historic districts, the Board of Architectural Review must approve exterior changes and demolitions. Build approval time into your schedule and your carrying costs.
- Older houses. Charleston single houses, bungalows and mid-century ranches often need structural, moisture and termite repairs. Order the CL-100 wood infestation report early and price what it finds.
- Flood. Check the flood zone and elevation before you buy. A house that floods, or carries a high flood premium, is harder to resell. In a flood zone, a large renovation can also trigger the rule that the house be brought up to current flood standards.
- Where the deals are. West Ashley, James Island, North Charleston and Park Circle, and parts of Summerville and Goose Creek, have the older housing stock that most flips start from.
Documents we ask for
- Loan application
- Signed purchase contract, or the settlement statement from your purchase if you are refinancing
- A rehab budget broken into line items with a clear scope of work
- Contact details for your insurance agent and closing attorney
- For an LLC: articles of organization, EIN letter and operating agreement
- For experienced investors: your projects from the last 3 years with settlement statements
The full list is in our hard money loan document checklist.
Fix and flip loans: common questions
As much as 90% of the purchase price and 100% of the renovation budget, provided the total loan is no more than 70 to 75% of the after-repair value. Those figures apply to borrowers with a credit score of 720 or higher.
The average is up to 21 days. Once title work and insurance are ready, a loan can close in about 7 days.
No. First-time investors can qualify. Investors who have completed 5 or more flips in the past 2 years get a shorter process with no inspection or appraisal.
Yes. Allow for Board of Architectural Review approval in your schedule and budget, since exterior work and demolitions need it.
No. Fix and flip loans carry no prepayment penalty.
Yes. When the work is done, a DSCR rental loan can replace the fix and flip loan, with a cash-out refinance at up to 80% loan-to-value.
No. We lend on investment property only.
Under contract on a flip?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.