Acquisition + rehab capital for short-term residential operators.
A fix-and-flip loan is a short-term, asset-based real estate loan that funds both the purchase and rehab of a property an investor intends to renovate and resell. Most fix-and-flip loans fund up to 90% of purchase and 100% of rehab, with the rehab portion held back and released in draws as work is completed.
A fix-and-flip loan is structured around the operator's playbook: buy below market, renovate quickly, sell at full retail. The loan is designed to fund both halves of that — acquisition and renovation — with the operator's skin in the deal being a 10–15% down payment, the closing costs, and any rehab overruns. Most fix-and-flip loans are interest-only with terms of 6 to 18 months to match a typical hold period.
The defining feature of a fix-and-flip loan is the rehab holdback. The lender doesn't hand the operator 100% of the rehab budget at closing — instead, the rehab portion is held in a reserve account and released in draws (typically 3–6 across a project) as work is completed and verified by inspection. This protects the lender from rehab funds being diverted and gives the operator a structured cash flow against the project.
LTARV (Loan-to-ARV) is the backstop. Even when the LTC math allows 90% purchase + 100% rehab, the total loan can't exceed 70–75% of the After Repair Value. This is what protects both lender and operator: if ARV is conservative and the project finishes on budget, the loan is well-collateralized. If ARV is stretched, the loan caps before it ever funds, and the deal gets re-cut at the underwriting stage rather than at the closing table.
The fix-and-flip lending market has matured significantly since 2015. Modern programs like Matrix's offer tiered pricing by operator experience — a first-time flipper might price into a 75% LTV / 75% LTARV / 11% rate program, while a 20-flip operator with clean history qualifies for 90% purchase / 100% rehab / 75% LTARV at 9.5%. Track record is everything: every completed flip moves the operator into a better pricing tier.
| Purchase price | $175,000 |
| Rehab budget | $75,000 |
| ARV (After Repair Value) | $350,000 |
| Loan structure: | |
| 90% of purchase | $157,500 |
| 100% of rehab (held back, drawn as work progresses) | $75,000 |
| Total loan | $232,500 |
| LTARV check: $232,500 ÷ $350,000 | 66.4% ✓ |
| Rate / term | 10.25% interest-only / 12 months |
| Operator cash to close (down + closing + reserves) | ~$24,500 |
| Projected gross profit (sale – all-in – sale costs) | ~$70,000 |
Most fix-and-flip programs have a 660+ floor, with the best pricing reserved for 700+. The credit pull is primarily a check on bankruptcies, recent late payments, and lien history — it's not the primary qualifying gate. The deal qualifies first.
No, but first-time flippers price into a tighter tier — typically 75% LTV / 75% LTARV / higher rate, with stricter reserve requirements. Every completed flip moves the operator into better tiers; by deal 5–10, you're typically at top pricing.
Matrix and other private capital lenders close fix-and-flip loans in 7–14 days on clean files. Repeat operators with established files can close in as little as 5 business days. That speed advantage is often what wins the deal.
You can submit a change order request for additional rehab funds. The lender reviews the new scope, may require an updated appraisal or ARV check, and either approves the increased rehab line or requires the operator to fund the overrun out-of-pocket.
Fix-and-flip loans are for existing structures being renovated for resale (short hold). Construction loans are for ground-up new builds (longer hold, more complex draw structure). Some lenders offer "fix-and-build" hybrids for properties being substantially expanded.
Matrix funds fix-and-flip loans at 90% purchase + 100% rehab, capped at 75% LTARV, with draw management that respects the contractor's pace.
