Fix and flip loans are short-term instruments designed to match the timeline of a renovation and resale project. Here is what to expect regarding loan terms.

Common Loan Terms

• 6 months: For fast-turnaround projects with minimal renovation scope — cosmetic updates, paint, flooring, and appliances
• 12 months: The most common term; covers most mid-range renovation projects in California
• 18 months: For larger renovation scopes, permit-required work, or markets where the listing and sales process takes longer
• 24 months: Available from some lenders for ground-up construction or major structural renovation

Matching the Term to the Project

Choose a loan term that gives you comfortable margin beyond your estimated project timeline. If you think the renovation will take 4 months and the sale will take 2 months, a 12-month term gives you 6 months of buffer. Underestimating the timeline and being forced to seek an extension adds cost.

Extension Options

Most fix and flip lenders offer extension options if you need more time — typically at a fee of 0.5%–2% of the loan amount and sometimes at a higher rate. Extensions are usually granted in 3–6 month increments.

The California Timeline

In Southern California, permitted renovation work can take longer than expected due to permit processing times in certain jurisdictions. Budget extra time for permitted projects in cities with longer permit queues.