What are Rehab or Fix and Flip Loans?
- Rehab or fix and flip loans finance the purchase or refinance and renovation of a real estate investment property.
- With a typical fix and flip or rehab loan, the borrower receives a payment at closing to buy or refinance the property. The remainder of the loan is paid out in installments as the renovations are completed.
- In most cases, lenders will use the property as collateral for rehab or fix and flip loans and underwrite the project by comparing the size of the loan to the value of the property after repair (i.e., “After Repair Value” or “ARV”).