Flipping properties in today’s real estate market? You’ll need more than just a good eye and contractor contacts. If you’re planning to use financing to acquire, renovate, and sell a home for profit, understanding the fix and flip loan requirements in 2025 is critical to your success.
At Coastline Bridge Lending, we help real estate investors throughout California, Nevada, and Arizona secure fast, flexible capital to fund their next flip — whether you’re a first-timer or seasoned pro. Below, we break down what lenders are really looking for in 2025.
What Is a Fix and Flip Loan?
A fix-and-flip loan is a short-term, asset-based loan designed to help investors purchase and renovate distressed properties for resale. These loans are typically interest-only and repaid within 6 to 18 months, either through the sale of the property or long-term refinancing.
Unlike traditional mortgages, fix and flip loans rely more on the property’s current and after-repair value (ARV) than on your credit or income. They’re built for speed, flexibility, and real-world investing timelines.
What Are the Requirements for a Fix and Flip Loan in 2025?
To get approved for a fix and flip loan, most private lenders — including Coastline Bridge Lending — evaluate the following:
1. Down Payment or Equity
Lenders typically fund up to 75% of the purchase price or 65%–70% of the after-repair value (ARV). That means you’ll need to bring 25%+ of the purchase price to the table or have equity in another property.
2. After-Repair Value (ARV)
Your projected ARV is a major factor. We want to know:
- What are the local comps?
- Is your renovation budget realistic?
- Will the end value justify the investment?
A solid ARV analysis builds lender confidence and increases your chances of approval.
3. Renovation Plan & Scope of Work
You don’t need to be a contractor, but you should have a plan. A detailed scope of work with estimated costs and timeline is required. This helps us structure your loan draws and manage risk.
4. Experience Level
While we lend to first-time flippers, having a proven track record of successful projects can unlock better terms, higher leverage, and faster approvals. If you’re new to flipping, partnering with an experienced investor or contractor can help.
5. Exit Strategy
Are you planning to sell the property after renovations? Refinance into a long-term loan? Pay off the loan with other funds? Your exit strategy should be clear and realistic — it’s one of the first things we ask about during underwriting.
6. Credit & Background
Although fix and flip loans are primarily asset-based, we do review your credit and background as part of our due diligence. However, perfect credit is not required. Many of our borrowers are self-employed or non-traditional.
7. Entity Structure
We recommend holding your investment property under an LLC. It’s not a requirement, but doing so can streamline the closing process, limit liability, and help you scale.
First and Second Position Loans: What’s the Difference?
At Coastline Bridge Lending, we offer both first and second-position fix and flip loans.
- A first-position loan means we hold the primary lien on the property — it’s our most common loan type.
- A second-position loan can be layered behind an existing mortgage or financing structure. This is ideal for investors who want to preserve their first loan’s favorable terms or are tapping into equity mid-project.
Not all lenders offer second trust deeds, but we do — as long as there’s sufficient equity and a clear exit strategy.
What Paperwork Do I Need?
To get started, most fix and flip lenders will require:
- Purchase contract (if applicable)
- Renovation scope of work
- ARV comps or appraisal
- Business entity docs (if LLC)
- Proof of funds for the down payment
- Basic personal or business financials
The faster you provide this documentation, the faster we can fund your deal — often in 5 to 10business days.
Fix and Flip Lending in 2025: What’s New?
The fix-and-flip landscape is evolving. Here’s what’s shaping the market in 2025:
- Tighter inventory has made deal speed even more critical.
- Higher interest rates are pushing investors to be more selective and ARV-conscious.
- Alternative lending is booming as banks tighten traditional credit.
Private lenders like Coastline Bridge Lending continue to fill the gap with fast, flexible funding based on equity, not red tape.
What Today’s Lenders Look For in a 2025 Fix & Flip Deal
Real estate investing has evolved in 2025—and so have the loan requirements. Today’s private lenders and hard money lenders assess more than just your renovation costs or After-Repair Value (ARV). They’re looking for a smart investment strategy backed by solid numbers, market awareness, and clear profit potential.
To position yourself for approval, here’s what matters most:
- Property Value & Comparable Properties: Lenders compare your target property to similar recent sales (comps) to estimate current market value and ARV. The better your comps, the more confident a lender feels in your projected returns.
- Square Footage & Price Per Square Foot: These metrics are crucial for house flippers evaluating cost-efficiency. A favorable price per square foot compared to neighborhood averages helps prove upside.
- Property Condition: A distressed or outdated property isn’t a problem—in fact, it’s expected. But you’ll need to clearly outline what improvements will be made and how those translate to increased value.
- Investment Properties & Market Conditions: Private lenders prefer properties located in stable or appreciating neighborhoods. Local housing market trends, buyer demand, and sales velocity all factor into approval.
- Cost of Repairs & 70% Rule: Many lenders follow the 70% Rule—offering loans no greater than 70% of ARV minus repair costs. Be ready to break down your budget and show that you’ve accounted for every rehab item.
- Investment Decisions & Flipping Houses Experience: If you’ve completed prior fix-and-flip projects, that’s a major advantage. New investors may face more scrutiny, but can still qualify with strong numbers and mentorship.
- Bridge Loan Backup Plans: In some cases, if you don’t meet traditional fix & flip loan terms, a short-term bridge loan might still work—especially if you can show a clear exit strategy, such as resale or refinancing.
Whether you’re a first-timer flipping houses in a hot neighborhood or a seasoned investor scaling your portfolio, understanding how these variables influence loan approval is key.
Ready to Fund Your Flip?
If you’ve got a property under contract or are preparing to make an offer, let’s talk. Coastline Bridge Lending offers fast fix and flip loans throughout California, Nevada, and Arizona — including Orange County, San Diego, Las Vegas, Phoenix, and more.