Qualification guide
Wondering whether you qualify for a fix and flip loan? Below is what lenders actually look at — and remember that guidelines are a starting point, not a wall. As a broker, CDL Mortgage works with lenders whose overlays differ, so a “no” from one bank is often a “yes” somewhere else.
Fix and flip and rehab loans in California, Texas, Georgia, Tennessee, Oklahoma, and Idaho for investors who need to move fast. Financing based on purchase price plus rehab budget with ARV and loan-to-cost underwriting, inspected draw schedules, and closings in days — not weeks. CDL Mortgage places your deal with the right private and hard money capital.
Credit score — each program has a minimum score, and stronger credit improves both approval odds and pricing.
Income & employment — lenders verify stable, documentable income; self-employed borrowers have flexible-doc options.
Down payment / equity — requirements vary by program, from 0% down (VA, USDA) up to 20–25% for investor loans.
Debt-to-income ratio — your total monthly debts vs. gross income; most programs want this under roughly 43–50%.
Property standards — the home must meet the fix and flip loan program’s appraisal and condition guidelines.
Reserves — some programs want a few months of payments in savings after closing, especially for larger loans.
Requirements
General guidelines — final qualification depends on the lender, property, and your full financial profile.
Questions
A short-term loan funds a percentage of the purchase price plus most or all of the rehab budget. Rehab funds are released in draws as inspected work is completed, you pay interest only during the project, and the loan is repaid when the property sells or refinances.
ARV is the After Repair Value — the appraised value of the property once the rehab is finished. Most lenders lend up to roughly 65–75% of ARV, and also cap total funding at a loan-to-cost (LTC) percentage of purchase plus rehab.
Many programs start around 620–660, and some asset-based lenders go lower because approval is driven mainly by the property, the budget, and your exit strategy. Stronger credit and flip experience improve your rate and leverage.
Typically 7–14 days, and as fast as 5 days on a clean file with a ready appraisal and clear title — which is what makes these loans competitive on auction and off-market deals.
Yes. First-time flippers can qualify, usually with a larger down payment, a conservative budget, and a licensed contractor on the project. Completed flips unlock higher leverage on your next deal.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.