Fix and flip loans for beginners
Every lender asks how many flips you’ve done. Here the answer can be “none”: with 680+ credit the loan covers 75% of the price, up to 90% with 740+, and the entire rehab.
- 0
- flips of experience needed
- 100%
- of a rehab up to $100K
- 680
- minimum credit score
First flip · 680+ creditTypical first flip
First-flip terms
Term sheetGuidelines as of November 2026
- Experience
- None required
- Credit score
- 680 or higher
- Share of the purchase price
- 75% under 720 · 80% at 720–739 · 90% at 740+ (at a higher rate)
- Share of the rehab budget
- 100%, up to $100,000
- Size of the rehab
- Light or moderate, no more than 50% of the price
- Limit against resale value (ARV)
- 70%
- Term
- 12 months, interest only
- Prepayment penalty
- None
Program maximums for a first fix and flip on a 1–4 unit investment property. Not a commitment to lend.
What the program expects from a first deal
The loan is sized on the house, so a missing track record does not stop it. What the program does is keep the first project manageable: a light or moderate renovation of up to $100,000, in the area where you live, with a projected return of at least 30% on the cash you put in.
Hold a real estate license or a contractor’s license? You are treated as experienced and start one level up: more of the price financed and a bigger rehab from the first deal.
What a first flip looks like in dollars
A $260,000 house, $50,000 of work, $420,000 resale value, credit of 740 or better:
| 90% of the $260,000 price, funded at closing | $234,000 |
|---|---|
| 100% of the $50,000 rehab, paid in draws | $50,000 |
| Total loan | $284,000 |
| Limit check: 70% of the $420,000 ARV | $294,000, the loan fits |
| Your cash in the deal | $26,000 + closing costs and one month of interest |
Illustration only. At 720–739 the loan covers 80% of the price and your cash in this deal is $52,000; under 720 it covers 75% and your cash is $65,000.
What changes after the first one
Each project you finish within three years moves you up a level.
Swipe sideways to see every column
| Projects in 3 years | Price financed | Heavy rehab | Additions, ADUs |
|---|---|---|---|
| None, first flip | 75%–90% | — | — |
| 1–2 | 80%–90% | 75% | — |
| 3–4 | 85%–90% | 80%–85% | 80%, no ADUs |
| 5+ | 90% | 85%–90% | 85% |
First-deal checklist
- An LLC or corporation. It can be formed before closing
- Credit of 680 or higher
- A purchase contract on a house in the area where you live
- A scope of work and a budget, and a contractor agreement if asked
- Cash for the down payment, closing costs and one month of interest
Other ways to start
Prefer to begin with a rental? DSCR loans have no experience requirement at all: leverage depends on credit, up to 80% of value with a 700+ score. A finished, renovated house can also be financed with a bridge loan with no experience and 680+ credit. Ground-up construction comes later, because it needs completed builds.
First flips are not available in Florida, and a few counties, including the Houston, Austin and San Antonio areas, ask for experience. We confirm what applies to your property when we look at the deal.
First-flip questions
Can I really get a fix and flip loan with no experience?
Yes, with 680+ credit and a light or moderate rehab of up to $100,000.
Is there a first-flip loan with no money down?
No. Plan on 10% to 25% of the price plus closing costs. The rehab is financed at 100%.
What credit score do I need for a first flip?
680. After three finished projects the minimum drops to 660.
Does a real estate or contractor license help?
Yes. Licensed agents, brokers and contractors start one level up the experience scale.
What profit does the deal have to show?
A projected return of at least 30% on your cash, after closing, holding and selling costs.
Where can I do my first flip?
In the area where you live, in any state we serve except Florida. A few counties also ask for experience.
Will asking for terms hurt my credit?
No. Terms are based on a soft pull, which does not change your score.
Does the loan have to be in an LLC?
Yes, an LLC or a corporation borrows. If you don’t have one yet, you can set it up before closing.
Have a deal in hand?
Leave your contact details and a line about the deal. We get back to you with which loan fits, how much it covers and written terms, before you pay for an appraisal.
- No hard credit pull to see terms
- No tax returns or W-2s
- Business-purpose loans on investment property