Fix and flip calculator

At closing we advance up to 90% of the purchase price. The renovation budget is held back and paid out in draws as the work is done and inspected, up to 100% of it. The whole loan is then held to two limits: 90% of the purchase price plus renovation, and 75% of the after-repair value. When one of them bites, the renovation is funded first and the amount at closing comes down, so you bring more to the closing table instead of running short in the middle of the project. The calculator shows which limit sets your loan.

A term sheet is a non-binding letter of interest from our underwriting team: after a preliminary review, the loan amount, rate, fees and conditions we would expect to offer on a specific property, still subject to full underwriting and the appraisal. Request one from the calculator and an advisor reviews the deal with you. If it fits the program, the letter follows once underwriting has looked at the property, your experience and your liquidity. To move from the term sheet into full underwriting, you sign it and send the deposit it names; your advisor explains what the deposit covers before you do.

You can borrow in an LLC or in your own name; when an LLC borrows, its principals sign personal guarantees at closing. We look at the flips and rentals you finished in the last three years, your credit, and your liquidity: plan on showing your cash to close plus 2 months of interest (4 on a loan over $1 million) in reserve. An appraisal confirms the as-is and after-repair values, and title comes from an approved company.

It is an estimate of the program's current pricing, there so the numbers mean something. Your rate, points and fees are set on your term sheet and depend on the property, your experience, your credit and the market when you apply.

The estimate charges interest on the money drawn: the advance at closing from day one, and the renovation money as it goes out, which works out to about half of it over the project. Your term sheet states how your loan charges interest. Interest is paid monthly and the principal when you sell.

ARV is the after-repair value: what the house should sell for once the work is done. It is the number the whole deal hangs on, so build it from closed sales of renovated houses nearby that match the beds, baths, size and finish you plan, sold recently. Asking prices and automated estimates are a starting point, not an answer. Our appraisal sets the value the loan is sized on, and a local agent who pulls the closed sales is the best second opinion before you make an offer.

No. The math runs in your browser and there is no credit check. Your name and contact details reach us only if you fill in the form to ask for a term sheet, save a scenario or download the PDF. If you use the property lookup, the address you type is sent to our property data providers to find the house and nearby listings.

The seller. On the purchase that is the person you buy from, and on the resale it is you. The state tax is $3.75 for every $500 of the sale price and the county adds $0.55 per $500, so budget for it in your selling costs. The calculator includes it for a Michigan property.

No. This program is business-purpose lending for investment property, not for a home you will live in. If you want to buy a home that needs work and move in, look at a renovation mortgage like the FHA 203(k), which rolls the repairs into one loan.

Run the flip numbers first: they tell you what the house costs you all in. Then look at a DSCR loan, which qualifies on the property's rent rather than your income, to pay off the short-term loan once the work is done and the house is rented.