What You Need to Qualify

Fix and Flip Loan Requirements

Fix and flip loans are a category of hard money / bridge financing structured around rehab projects. This page walks through every requirement Pimlico Capital uses to underwrite a fix-and-flip loan — credit, LTV, ARV, rehab budget, and the draw process.

Get a fix-and-flip quote Call (410) 855-4600
Fix and flip rehab in progress
Fix & Flip
660+Minimum FICO score
90% LTCPurchase, plus 100% rehab
70% ARVMaximum total loan vs. ARV

ARV (After-Repair Value) underwriting

ARV is the projected market value of the property after the rehab is complete. We base the maximum loan size on a percentage of ARV — not on the as-is value.

Maximum total loan (purchase + rehab) is capped at 70% of ARV. That means if the ARV is $400K, your total loan can't exceed $280K.

We order an independent appraisal that includes both the as-is value and a subject-to-completion ARV. Full ARV explainer →

LTC (Loan-to-Cost) and rehab funding

Up to 90% LTC on the purchase price for experienced flippers.

Entry-level tier: 80% LTC on purchase.

100% of the approved rehab budget, funded in draws as work is completed.

Combined max loan: 70% of ARV (per above).

Rehab budget requirements

We require an itemized rehab budget — line items by trade, with realistic costs.

Include a contingency. Most experienced flippers run a 10–15% contingency line; we expect to see one.

How to build a realistic rehab budget →

Budget can be revised mid-project if scope changes (with our approval and an updated draw schedule).

MAO formula and deal underwriting

Investors typically calculate Maximum Allowable Offer (MAO) as: (ARV × 70%) - Rehab - Profit target.

We use a similar lens on the lender side. If your deal doesn't have enough margin between ARV × 70% and (purchase + rehab + holding costs), the loan may not work.

Full MAO formula walkthrough →

Credit score and experience

Minimum 660 FICO. Higher credit (700+) unlocks better pricing.

First-time flippers welcome. Experienced flippers (3+ completed in the last 36 months) get tighter pricing and higher LTC tiers.

No bankruptcy in 4 years; no foreclosure in 3 years.

Draw process during rehab

Rehab funds are held in escrow and released in draws as work is completed.

Typical schedule: 3–6 draws over the project. Each draw is triggered by your request and a local inspector's confirmation.

Draw turnaround: 48–72 hours from inspection request to wire.

Full draw process walkthrough →

The Differentiator

What we DON'T require

What most lenders ask for that we don't — these are the things that make our process faster than a conventional shop.

No prior flip experience required for entry-level deal sizes.
No personal income verification. No W-2s, no pay stubs.
No personal tax returns.
No DTI calculation.
No prepayment penalty. Sell ahead of schedule and pay off without a fee.
Checklist

Documents you'll need

A typical complete file looks like this.

Government-issued photo ID for each borrower / guarantor
LLC operating agreement and EIN (if closing in an entity)
Purchase contract and property address
Itemized rehab budget with contingency
Comparable sales for ARV justification
Photos of the property (interior + exterior)
List of completed flips in the last 36 months (addresses and exits) — optional but helpful

Common Questions

Do you fund first-time fix-and-flippers?
Yes. We fund investors on their first flip, with appropriate pricing and entry-level LTC tiers. Experienced flippers with a track record qualify for tighter pricing.
How is ARV determined?
We order an independent appraisal that includes both an as-is value and a subject-to-completion ARV based on your rehab plans. The appraiser pulls comparable sales of similar finished properties in the area.
What's the maximum total loan?
Combined purchase + rehab is capped at 70% of ARV. For experienced flippers, we go up to 90% LTC on purchase + 100% of rehab, as long as the combined loan stays under 70% ARV.
What if my rehab goes over budget?
We can revise the rehab budget mid-project with approval and an updated draw schedule. Significant scope changes require new underwriting; minor overruns are usually absorbed in the contingency.
How long can the loan be open?
6–18 month terms. Extensions available for ongoing projects. Most fix-and-flip deals close in 6–9 months from funding to exit.
Is there a prepayment penalty?
No. Sell ahead of schedule and pay off without a fee.
Can I refinance into a long-term rental loan instead of selling?
Yes — that's the BRRRR strategy. Once the property is stabilized and rented, we refinance the bridge into a 30-year DSCR rental loan. We fund both sides of the pipeline.
How It Works

From first call to funded.

1

Submit the deal

Get a quote online or call us. We'll size the deal in 24 hours.

2

Underwriting

Our in-house team underwrites the file — not an algorithm or a remote committee.

3

Close & fund

5–10 business days for bridge, 3–4 weeks for 30-year rental.

Investor Education

From the Blog

Investor playbooks and explainers from our team. See the full library on our blog.

Ready to talk about your deal?

Get a quote in 24 hours or call us right now.

Get a fix-and-flip quote Call (410) 855-4600
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