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Whether you're flipping your first house or your fiftieth, choosing the right financing can make or break your deal. Here's every fix and flip loan option available in 2026 — with real numbers.
| Loan Type | Rate | Down | Speed | Best For |
|---|---|---|---|---|
| Hard Money | 9-14% | 10-25% | 7-14 days | Most flippers |
| Private Money | 8-12% | Negotiable | 1-7 days | Experienced investors |
| DSCR | 7-9% | 20-25% | 21-30 days | BRRRR investors |
| Home Equity/HELOC | 7-10% | 0% | 14-30 days | First-time flippers |
| Conventional | 6-7% | 15-25% | 30-45 days | Long-term holds |
Hard money loans are the gold standard for house flippers. They're asset-based loans secured by the property you're buying, which means the lender cares more about the deal than your personal finances.
How it works: A hard money lender will fund 70-90% of the purchase price plus up to 100% of the rehab costs. You close fast (often in 7-14 days), do the flip, sell the property, and pay off the loan. The typical term is 6-18 months.
Best for: Active flippers who need to close fast and compete with cash buyers. Hard money is the most common fix and flip loan type because of its speed and flexibility.
Pro Tip: Before signing with any hard money lender, run the full deal through a fix and flip calculator to make sure the loan costs don't eat your profit. Factor in origination points, monthly interest, and extension fees.
Private money comes from individuals — friends, family, colleagues, or private investors who want passive returns on their capital. It's the most flexible fix and flip financing available.
Best for: Experienced investors with a track record who can show lenders a clear plan and exit strategy. If you've completed 3+ flips, start building your private lending network — it's the cheapest and fastest capital available.
DSCR loans are designed for rental properties and the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). Unlike traditional loans, qualification is based on the property's rental income — not your personal income.
Best for: Investors using the BRRRR strategy who want to buy, rehab, and hold as rentals. DSCR loans let you refinance after rehab without showing personal income.
If you own a primary residence with equity, a Home Equity Line of Credit (HELOC) or home equity loan can fund your flip at much lower rates than hard money.
Best for: First-time flippers who own a home with significant equity. HELOCs are revolving credit lines — you can draw, repay, and draw again without reapplying.
Warning: Using a HELOC puts your primary residence at risk. If the flip goes south and you can't repay, you could lose your home. Only use a HELOC if you have strong reserves and confidence in the deal.
Traditional bank loans offer the lowest rates but come with the strictest requirements and slowest closing timelines. Most conventional lenders won't fund properties that need significant rehab.
Best for: Buy-and-hold investors purchasing properties that don't need major rehab. Not ideal for active flippers who need speed.
The best loan depends on three factors:
Every lender wants to see three things:
Hard money loans are the most popular choice for active flippers because they close fast (7-14 days), fund rehab costs, and don't require full income documentation.
It's difficult but possible. Some private lenders will fund 100% if you have a strong track record. You can also partner with another investor who brings the capital while you manage the project.
On a typical $200,000 hard money loan at 12% with 2 points, expect to pay approximately $4,000 in origination fees plus $2,000/month in interest. On a 6-month flip, total loan costs would be around $16,000.
FlipLogic's built-in Lender Marketplace lets you compare hard money, private lending, and DSCR loan options in one place. Browse rates, terms, and apply directly — no more cold-calling 20 lenders. Start your free trial.