Mortgage Programs › Specialty Loans › Fix and Flip Loans › What Credit Score Is Required for a Fix and Flip Loan?

Fix and Flip Loans — Lendia California

What Credit Score Is Required for a Fix and Flip Loan?

Credit requirements for fix and flip loans are more flexible than conventional financing, but they do vary by lender. Here is what most California fix and flip lenders expect.

Typical Credit Requirements

Most fix and flip lenders require a minimum FICO of 620–660
Some lenders will consider borrowers below 620 with compensating factors (strong deal, significant down payment, experienced investor)
Better credit typically translates to better LTV and lower rates, even in the hard money space

Credit Events

Fix and flip lenders are generally more tolerant of credit events than conventional lenders. Borrowers with a prior bankruptcy or foreclosure may still qualify, particularly if the event is seasoned (1–2+ years) and the current credit profile is improving.

What Matters More Than Credit

For fix and flip loans, lenders weight the following heavily alongside credit:

The deal quality — purchase price vs. ARV, renovation budget vs. scope
Borrower experience — track record of completed projects
Exit strategy — how and when the loan will be repaid
Down payment and skin in the game

Entity Borrowers

If borrowing in an LLC, the lender will typically pull the personal credit of the guarantor(s). Strong personal credit from the guarantor can compensate for a thin entity credit profile.

Typical Minimum: 620–660 FICOCredit matters but is not the primary underwriting factor. Deal quality and investor experience can compensate for a less-than-perfect credit score in the fix and flip space.

Tidy your credit before you apply

Pull your reports and dispute any errors well ahead of the application.
Pay down revolving balances where you can, because lower utilization helps scores.
Do not open new accounts or finance large purchases while applying.
Gather explanation letters for any late payments, collections or past credit events.
Keep funds seasoned in your account so the source is easy to document.

How score and deal quality trade off

Profile	What tends to help
Score in the lower part of the typical 620–660 minimum range	A larger cash contribution, a conservative budget and a clear exit
Score below the range	Experienced co-guarantor, strong deal and substantial equity in the project
Strong score, new investor	Credit helps, but expect lender focus on experience and the scope of work

These are general patterns, not guarantees of approval.

Guarantors and LLCs

When the borrower is an LLC, the lender typically pulls the credit of the person who signs a personal guarantee. If you have two partners, ask whether both must guarantee and whether the stronger credit can lead. Choose guarantors with the project in mind, since each one’s credit and liabilities are in play.

Mistakes that cost borrowers time

Applying with several lenders over a long period, which spreads inquiries across multiple weeks
Leaving an old collection or dispute unaddressed until underwriting
Not telling the lender about a recent bankruptcy or short sale until the credit report shows it
Submitting an LLC application without realizing the guarantor’s personal credit will be reviewed

Frequently asked questions

How long after a bankruptcy or foreclosure can I get a flip loan?

This page notes that seasoned events of 1–2+ years with improving credit can qualify with some lenders. Individual lender rules differ, so share your dates with us.

Do lenders pull credit for every partner?

Typically for every guarantor, so ask before sending authorizations. The lender decides whose credit and experience it relies on.

Can a stronger co-guarantor offset my score?

Sometimes. An experienced, well-qualified guarantor can improve the profile. Have an attorney review any guaranty and partnership terms.