Best House Flipping Loans

How to finance your next flip

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House flipping loans are short-term mortgages (sometimes called rehab or bridge loans) that real estate investors use, along with their own cash or credit lines, to buy a house, repair and upgrade it, then sell it at a higher price to earn a profit. 

When choosing a house flipping loan or lender, pay attention to your upfront costs, restrictions to the loan, any extra services the lender provides to help you through the process, and their application system. The best lenders in the space have made this traditionally tedious loan application process simpler, more efficient, and faster.

Best House Flipping Loans in 2021

Best Overall Lender : LendingHome

Lending Home

 Lending Home

LendingHome, our best overall lender, is led by a large team of investors who are focused on making the loan process easier for borrowers. In addition to their streamlined application and approval process, LendingHome earned our top ranking because they also help you find, buy, and sell properties in their property marketplace.

Pros
  • Can loan up to 90% of purchase price

  • Loan in over half of U.S. states

  • Have their own property marketplace

Cons
  • Flippers who have done fewer than five flips have higher rates and fees

LendingHome is driven by a desire to fix the mortgage process by using innovative technology to simplify and streamline it. This motivation emerges from every pore of the company’s leadership, and they go the extra mile by helping you buy and sell properties as well. Where other lenders are focused on their loan products, LendingHome is focused on simplifying the process and adding to it with their property marketplace, making them our best overall house flipping lender. 

LendingHome’s employees have flipped properties themselves and have licenses and certifications in the industry to add to that knowledge. They have funded over $7 billion in loans across more than 30,000 projects in 28 states

The company has competitive interest rates, high loan to value (LTV) ratios, low origination points, and low fees to apply. LendingHome rewards your loyalty with lower rates and points for successive projects. You can expect closing fees as low as $999, and a closing date as quick as five days. You’ll also be able to manage your loan online and are assigned a dedicated experience manager. 

  • Rates starting at 6.5%
  • 85% to 90% loan to cost (LTC)
  • 75% After Repair LTV for experienced borrowers (70% for standard borrowers)
  • Will lend up to $150,000 on a rehab (up to $250,000 in California)
  • No income or asset verification on the majority of deals
  • No appraisal required for purchases or delayed purchase refinances 

LendingHome has a 4 out of 5-star rating on Zillow, and employees rate working for the company at 4.2 out of 5 stars on Glassdoor. In 2019, they received a Fintech Breakthrough Award for Best Digital Mortgage Product.

Best for Experienced Flippers : Lima One Capital

Lima One Capital

 Lima One Capital

Experienced flippers should check out Lima One Capital. The lender has five different types of rehab loans that give the experienced flipper more tools to use based on their changing needs.

Pros
  • Can lend in 45 states

  • Strong 5-star rating online

  • Offers several programs depending on what type of flip you’re interested in doing

Cons
  • An appraisal is always required; no BPO option; no post-close appraisal

  • $200 fee to withdraw rehab funds

Experienced flippers may want more loan programs to choose from as they broaden their scope of how to get deals done. Lima One serves up a suite of five rehab loans that puts more tools in your toolbox, making them our recommendation for experienced flippers. 

Lima One Capital is a hard money lender that loans on non-owner-occupied homes only, like all of the other winners on our list. Lima One got its name from its founders’ call sign in Iraq, where he served as a Marine. It’s the cultural foundation of their company, where it’s all about how you respond when you get knocked down. 

Lima One’s FixNFlip program is designed for investors to buy, renovate, and sell a property within 13 months. The lender also has Fix2Rent, Multifamily, and New Construction programs. Founded in 2010, Lima One has created a quick and simple online application process and has grown to over $13 million in revenue annually.

Some experienced house flippers like to branch out beyond rehabbing an existing house by building a house from the ground up and then selling it once completed. This too is a form of house flipping, and Lima One’s new construction loan delivers. Sample terms include:

  • 13-, 19-, or 24-month terms
  • Interest only 
  • Interest rates as low as 8.5%
  • Lima One will loan up to 90% LTC and up to 70% LTV

On Birdeye.com, Lima One Capital has a 5 out of 5-star rating with over 120 reviews posted. Users praise great communication, pleasant representatives, professionalism, and being able to get loans fast as the company’s strengths.

Lima One Capital is not currently licensed to do business in Arkansas, North Dakota, Nevada, South Dakota, or Vermont. It is either licensed or does not require licensing in all other states.

Best Crowdfunding Option : Groundfloor

Groundfloor

 Groundfloor

Winning top marks for the best crowdfunding option, Groundfloor has merged technology with the crowdfunding concept and applied it to house flipping to make the most streamlined process for rehabbers and investors.

Pros
  • Groundfloor can lend when banks retreat from the market

  • Can borrow up to $2 million

  • Can roll fees and points into your principal loan at closing

  • Higher LTV ratios than other crowdfunding sites

Cons
  • Loans close a little slower at three to four weeks

  • Flippers on this platform have a higher default rate than elsewhere, indicating the lending criteria may need to tighten up in the future

Crowdfunding is a way of borrowing capital from a group of people, whether that be family, friends, customers, or independent investors. Groundfloor has opened up real estate crowdfunding of small fix-and-flip projects to non-accredited investors to join in the stakes with a simple online process. With Groundfloor, both accredited and non-accredited investors can participate in smaller real estate investment loans, for as low as $10. 

The lender offers short-term, high-yield returns secured by real estate. Groundfloor’s lending guidelines are:

  • One- to four-unit properties in 30 states
  • New construction projects in Georgia and North Carolina
  • Loan size: $75,000 to $2 million 
  • Terms: Six-, nine-, and 12-month loans
  • Up to 75% LTARV; Up to 100% loan-to-cost depending on experience
  • No minimum transaction experience required
  • Five-year look back for experience
  • Minimum credit score of 600
  • Minimum property value $50,000
  • All loans will be full recourse loans with personal guarantees

The company offers this investment model with Groundfloor responsible for the origination and servicing. Interest rates vary based on the house flipper’s experience, credit score, and business plan, plus the property’s appraisal. 

This unique way of funding is popular with its users. Diversyfund.com shows they have a 4.3 out of 5-star rating from 233 reviewers.

Best Pre-Qualification Option : Fund That Flip

Fund That Flip

Fund That Flip

Virtually no hard money rehab lenders provide a pre-qualification letter that flippers can use before they’ve signed a purchase and sale agreement. If you want to approach the market with the authority of a cash buyer, however, Fund That Flip is the best place to turn for pre-qualification.

Pros
  • Offer a pre-qualification letter for quicker offer acceptance

  • Have won many awards for their innovation and services

  • Close loans quickly for proven flippers

Cons
  • States where they lend not published on website

  • Prefer to work with flippers who have completed three or more projects

Fund That Flip, our best pre-qualification house flipping lender, will interview you and give you a pre-qualification letter so you can close deals faster, just like an all-cash buyer. With offices in New York City and Cleveland, Fund That Flip can pre-qualify flippers for up to $5 million and can loan up to $25 million to a single borrower over several projects. The company provides a dedicated account manager to each of its clients. 

This lender offers Fix-and-Flip, Fix-and-Rent, New Construction, and Cash-Out Refinance programs. The company can close as quickly as five to seven days and prefers to work with flippers who have a successful track record. Fund That Flip has also loaned over $450 million to hundreds of clients in 24 states and Washington, D.C.

  • Loan amount: $100,000 and up
  • Loan rates: Starting at 8.49%
  • Loan origination: 1% to 2%
  • Required down payment: Minimum 15% of purchase price
  • Renovation budget: Up to 100%
  • Security: First lien position only
  • Time to close: Five to seven days
  • Amortization: Interest only
  • Term length: Three to 24 months
  • Business purpose: Property must not be owner-occupied

Fund That Flip has strong Facebook reviews (4.7/5) and Glassdoor employee reviews (4.9/5). The company website states over 93% of their customers would use their services again. They have won many awards including 2019 Industry Thought Leaders (Matt Rodak, CEO and Founder) by MReport, 2019 NorthCoast99 Great Workplace Award, Inc 500 Magazines Fastest Growing Company in America (#42 in 2019), and 2019 Founders to Watch (Matt Rodak) by The Startup Weekly.

When applying, they’ll ask you for a detailed work statement that itemizes the costs of repairs and your exit strategy for the property. They’ll also want to see pictures of the proposed purchase.

Best Added-Value Lender : CIVIC Financial Services

CIVIC Financial Services

 CIVIC Financial Services

CIVIC Financial Services has partnered with Home Depot, earning the company our best added-value lender position. This partnership allows flippers to save money on supplies and materials for their rehabs.

Pros
  • Offers up to 100% rehab financing and discounts with Home Depot

  • They can close as quickly as five days

  • They’ve won many awards

  • CIVIC Victory Club Loyalty Program

  • They have loaned fix-and-flip loans as high as $4 million in high-cost areas

Cons
  • If you don’t use Home Depot, the added value program won’t be useful to you

  • This can extend to three weeks or more when appraiser schedules dictate

  • Lend in 20 states

CIVIC’s rehabber savings program through Home Depot (called the Rapid Pass program) allows you to save money on many items while shopping in their store. You can bypass waiting in line at the Pro Desk by using their Rapid Pass App at any register. You use the app when you want to apply your discounts. No minimum purchase is required and the app is eligible for use at any Home Depot location nationwide. 

CIVIC Financial Services is a hard money lender that prides themselves on their experience and technology. You can complete the entire application process online. The CIVIC team can process loans in-house and offer quick decisions (on average between seven to 10 business days, and sometimes as quickly as five days). With the company’s new customer loyalty program, CIVIC Victory Club, you can expect to receive perks and rewards when you finance at least three properties, including high-end tablets, small home appliances, and other valuable gifts.

For loan products, CIVIC offers bridge loans, fix-and-flip, rental, refinance, rehab financing, long-term loans, and multifamily. With no minimum FICO and stated income only, CIVIC provides up to 80% for cash-out refinances, and up to 100% rehab financing. Additional criteria that set them apart: 

  • A one-year term that has no pre-payment penalty 
  • A two-year option for larger projects, with only a six-month pre-payment penalty 
  • Loans up to 90% loan to price (LTP)
  • Bridge loans interest rates start at 6.99% and rental loans begin at 4.75%
  • No personal guarantee, so this is a non-recourse loan for a flip
  • Only one credit pull per year
  • Larger rehab budgets than other lenders, around $275,000, up to 130% of the purchase price
  • CIVIC allows you to double the size of the home through rehab
  • Will refinance at mid-construction if you are part of the way through the project with another lender
  • Referral program: If a borrower refers someone to CIVIC, CIVIC pays up to 1% 
  • After three flips, borrowers can qualify for cash back on closed loans up to $450
  • There is no cap on how many properties they will lend on; one couple funded 77 loans with them in January 2021

CIVIC Financial Services lends in 20 states and Washington, D.C., and has many positive reviews online. With Trustpilot.com, they have a 4.8 out of 5 rating and a 4.7 out of 5 with Glassdoor.  They have won several awards including being ranked in the top 5% in the finance industry by Peakon, Best Workplace (#9) by Fortune magazine in the financial services and insurance division, a 2018 Vanguard award by Housingwire Magazine, and named the #6 Best Mortgage Company to Work For 2021 by National Mortgage News (the only private lender on the list).

Final Verdict

There are several solid lenders to choose from depending on your needs. If you’re just getting started, 11 Capital Finance may be your best option because, as a full-service broker, they hold your hand through each step of the process. On the other hand, if you’re experienced in flipping, Lima One Capital has program options that can help you expand your scope. Finally, if you’re thinking about making a lot of trips to Home Depot for your rehab project, CIVIC Financial Services may be the way to go so you can take advantage of their savings program.

LendingHome is still the best overall lender because of its property marketplace to buy and sell your next flip, no income or asset verification, and no appraisal required. You’ll like their interest rates and low closing fees as well.

Compare the Best House Flipping Loans

Lender Loan Amount Loan Term How to Qualify APR Fees
LendingHome Best Overall Up to $150,000 on rehab, ($250,000 in Calif.) 12-, 18-, and 24-month options 640 FICO Starting at 6.5% Closing fees as low as  $999
Lima One Capital
Best for Experienced Flippers
$75,000 to $5 million 13 months 620 FICO Starting at 8.5% Two to four points plus appraisal/legal
Ground Floor Best Crowdfunding Option $75,000 to $2 million Six to 36 months No experience required, 600 FICO, minimum property value of $50k 5.5% to 18% Closing $1,250
Fund That Flip Best Pre-Qualification Option $100,000+ Three to 24 months Prefer at least three prior flips Starting at 8.49% Two to four points plus appraisal/legal
CIVIC Financial Services Best Added-Value Lender $100,000 to $7.5 million 12 or 24 months No experience required, no credit score minimum Starting at 6.99% Two to four points, plus appraisal/legal

Frequently Asked Questions

What Are House Flipping Loans?

A house flipping loan is a real estate loan that helps you finance the purchase and rehab costs of a house so that you can fix it up, increase its value, and sell it for a higher price, earning you a profit. These types of loans typically require a 15% to 25% down payment on the purchase price, but will usually fund 90% to 100% of your proposed rehab budget. Rehab funds are normally requested in periodic draws to fund different stages and trades work of the house repair.

How Do You Get a Loan to Flip a House?

House flipping loans are considered higher risk than a traditional mortgage, so these loans most often are handled by hard money or private lenders that are more willing to take on the risk, will charge you more in fees and higher rates in exchange for that risk, and can close on your loan much more quickly.

Lenders will look at what experience you have in flipping houses, your credit background, how much money you can commit to your down payment, and the condition of the house you’re hoping to flip. All of these criteria will impact your interest rate and terms.

What Type of Loan Is Best for Flipping a House?

The type of loan that is best depends on your project, but many lenders who specialize in flipping have a fix-and-flip program. These types of programs vary, but for example, you could see a one-year term with no pre-payment penalty with up to 80% loan to value and 85% loan to cost. More experienced flippers may be interested in a new construction loan so they can buy land, build a new house, and then flip it (sell it), upon completion.

How We Chose the Best House Flipping Loans

We looked at 12 different companies before arriving at our best lenders. Factors such as experience and reputation, rates and fees, and a speedy approval and funding process elevated the best lenders to the top. Lenders that covered at least 20 states or more scored higher too. 

Extra value features such as value-added discounts at Home Depot, pre-qualification letters, or a property marketplace to help you find and sell your next flip helped our best providers stand out from the crowd as well.

Article Sources

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  2. Zillow. "Lender Reviews." Accessed March 30, 2021.

  3. Birdeye.com. "Lima One Capital." Accessed March 30, 2021.

  4. Glassdoor.com. "Fund That Flip." Accessed March 30, 2021.

  5. Facebook. "Fund That Flip." Accessed March 30, 2021.

  6. Glassdoor.com. "Overview-Civic Financial Services." Accessed March 31, 2021.

  7. Trustpilot. "Civic Financial Services Review." Accessed March 30, 2021.