Lendia Mortgage — Specialty Loans

Fix and Flip Loans in California

Fix and flip loans are short-term financing solutions designed for California real estate investors who acquire properties in need of renovation and resell them for a profit. Unlike conventional mortgages, fix and flip loans are underwritten based on the after-repair value (ARV) of the property — allowing investors to finance both the acquisition and the renovation costs in a single loan. At Lendia, we work with California investors at every experience level to secure the fix and flip financing that matches their project timeline and exit strategy.

Fix and Flip Loans At a Glance

Feature Details
Loan Basis After-repair value (ARV) of the property
Max Loan-to-ARV Up to 70%–75% of ARV
Max Loan-to-Cost Up to 85%–90% of total project cost
Rehab Funds Disbursed in draws as work is completed
Loan Term 6–18 months (short-term)
Typical Rate Range 9%–12%+ depending on experience and LTV
Points 1.5–3 points typical
Experience Required Varies — first-timers may qualify with lower LTV
Eligible Properties SFR, 2–4 unit, condos (non-warrantable OK)
Eligible States California
Fix and Flip Loans — Full Q&A Library

How the loan amount is actually set (illustrative example, not a quote)

The table shows two limits: up to 70%–75% of ARV and up to 85%–90% of total project cost. The loan generally cannot exceed the lower of the two. Using round numbers and the low end of each range:

  • Purchase price $450,000 plus renovation budget $100,000 = total cost of $550,000
  • Estimated after-repair value (ARV): $700,000
  • 70% of ARV: $700,000 × 70% = $490,000
  • 85% of cost: $550,000 × 85% = $467,500
  • Maximum loan in this example: the lower figure, $467,500
  • Cash needed from you toward cost: $550,000 − $467,500 = $82,500, before points and holding costs
  • Points at 2% of $467,500: $9,350

Because rehab funds come in draws, you often front the renovation spending and are reimbursed as work is verified, so plan your cash accordingly.

Budget lines investors forget

  • Monthly interest while the project runs, plus property taxes, insurance, and utilities.
  • Permit and inspection costs, and a contingency for surprises behind walls.
  • Selling costs at exit, such as agent commissions, escrow, and transfer tax where it applies.
  • Appraisal, title, and draw inspection fees.

Common mistakes

  • Optimistic ARV. Base it on recent closed sales of similar renovated homes, not on listings.
  • Thin contingency. Older California homes often hide permit, electrical, or plumbing issues.
  • Timeline too tight. The term is short, so a permit delay can push you into extension territory.

Frequently asked questions

What documents help a first deal get approved?

A scope of work with line-item costs, the purchase contract, comparable sales supporting your ARV, proof of the cash you are bringing, and, if you have one, a track record of prior projects.

Can I use the loan on a condo?

The table lists condos, including non-warrantable ones, as eligible. Individual building issues still get reviewed.

Should I plan to sell or rent afterward?

Decide before you borrow. A sale exit rewards a fast, tidy renovation. A rental exit means lining up longer-term financing before the short-term loan matures.

Related guides

Borrowing against a California rental

If the property is a rental, these guides explain the options, limits and what lenders check.