How to Qualify for Fix and Flip Loans: Complete Checklist Every Investor Should Follow

Fix and flip loans don’t require perfect credit or a high income. Lenders focus on deal fundamentals: purchase price, renovation budget, after-repair value (ARV), and how much margin exists for error.

Investors often blame financing for rejections, but the real culprit is usually poor preparation and weak numbers.

When you prepare first and then apply, approvals often move within 10–14 days. This checklist shows exactly how to prepare before you apply.

What Fix and Flip Lenders Actually Evaluate

Fix and flip loans are not bank mortgages. Banks focus on income and credit scores. Fix and flip lenders start with the deal.

Most lenders evaluate deals in this order:

• Deal quality
• Execution experience
• Cash and down payment
• Credit profile

The property is the collateral. Experience shows whether you can execute. Cash shows whether you can absorb surprises without walking away mid-project.

Most fix-and-flip lenders require a 15–25% down payment, depending on the deal and experience. If that capital is not available, the deal usually stops right in the beginning.

Deal quality controls everything else. Strong deals get funded even with an average credit score. Weak deals do not get funded, even with strong personal finances.

The 5 Core Qualification Factors

Fix and flip lenders never evaluate these factors in isolation.

Each factor builds on the one before it and ties directly to real risks like leverage, execution, carrying costs, and the exit.

1. Investment Property Details

Lenders judge the property first because the house, not your resume, is the primary collateral.

Single-family homes are the most straightforward. They have the largest buyer pool and the most predictable resale timelines. Small multifamily units change the math; commercial deals change the entire rulebook. Commercial properties are evaluated based on income performance rather than resale alone.

Before you apply for the fix and flip loan, you must verify the property’s identity with precision:

• Check the official deed to confirm ownership.
• Verify county records for zoning or usage conflicts.
• Call the title company if anything is unclear

2. The Math: Controlling Total Project Cost

Fix and flip lenders focus on the total cost the moment the property is cleared.

Your purchase price and renovation budget together form the total project cost.

That number determines your Loan-to-Cost (LTC), the percentage of the total project cost the lender is willing to fund. LTC dictates your ‘skin in the game’, the cash you must bring to the closing table.

Your numbers in the renovation budget must be real.

• Use a signed purchase agreement with the exact price
• Get written estimates from licensed contractors
• Multiple estimates to validate pricing (even if you plan to use a trusted contractor)
• Make sure every estimate is itemized by work category
• Add a 10% contingency buffer

Never guesstimate renovation costs. Never rely on online calculators. Contractors must see the property in person.

Lenders compare your budget against market standards. If your numbers come in far below market, lenders assume risk, not efficiency.

3. The Ceiling: Proving the After-Repair Value (ARV)

With costs defined, fix-and-flip lenders look at the exit value.

ARV sets the ceiling for the loan. It drives Loan-to-Value (LTV), which is the final loan amount compared to the property’s value after renovations.

Stormfield lends based on the lower of LTC or LTV to avoid over-leveraging the deal.

Getting ARV wrong works both ways.

• Overestimate it, and the quote looks strong but gets corrected later
• Underestimate it, and you leave usable capital on the table

Your ARV must be backed by data.

• Pull comparable sales from the same neighborhood
• Use properties sold within the last 90 days
• Match square footage and finished condition
• Record actual sale prices, not asking prices
• Use at least five comps and calculate the average

Document everything. Screenshot comps, save sale prices, and keep your market analysis.

Lenders rely on proof, not assumptions.

4. Your Experience Level: Proving Execution

After the numbers, lenders assess execution risk. Experience reduces uncertainty. Investors with a track record usually qualify for better rates and higher LTC allowances.

First-time flippers can still get approved, but they typically need more skin in the game through a higher down payment or lower leverage.

If you have experience, show it clearly.

• Prior purchase contracts
• Closing statements showing results
• Before-and-after photos
• Project timelines and profit margins

If this is your first deal, lenders look closely at your team.

Be honest. Lenders verify everything. Claiming experience you do not have ends deals quickly.

5. Your Exit Strategy

Finally, lenders evaluate timing and exit strategy.

Timelines affect carrying costs and risk. A detailed schedule shows you understand your market and have thought through execution.

Build timelines using real data. Review local MLS days-on-market and ask contractors how long similar work typically takes. Confirm closing and permitting timelines.

Assign specific dates for purchase, permits, construction start, construction completion, listing, and sale.

Conservative schedules get approved more easily. Aggressive timelines raise concerns during underwriting.

Understanding Your Instant Quote Results

Try Stormfield’s instant quote app. The app calculates your estimate the moment you submit your data.

Your quote shows:

• Estimated loan amount, based on LTC, LTV, and factors that we discussed above
• Estimated interest rate range
• Estimated total cost and loan details: It is not just the rate. Other details like the origination fees, payment reserves, and prepayment flexibility also matter.

The instant quote is guidance, not final approval. Numbers often change once underwriting reviews the full file.

Why Your Quote Might Surprise You

If it comes in lower than expected:

• The renovation budget appears below market
• ARV is not supported by comparable sales
• First-time status reduces leverage

Do not accept a lower quote as final. Call a loan officer and walk through the numbers. Clean documentation often improves terms.

If it comes in higher than expected:

• The budget is realistic
• ARV is well supported
• Experience reduces lender risk

Approval still requires full underwriting and documentation.

Final Checklist: Clearing the Path to Funding

Step 1: Research Comparable Sales

Find three or more properties sold in your neighborhood within 90 days.

Create a spreadsheet with:

• Property address
• Final sale price (never asking price)
• Sale date
• Square footage
• Bedrooms and bathrooms
• Property condition and features

Use these comps to find your realistic ARV.

Step 2: Collect Written Contractor Estimates

It is better to get multiple estimates to confirm pricing is in line with local market rates (even if you plan to use a trusted contractor).

Request itemized estimates covering:

• Kitchen renovation
• Bathroom renovation
• Flooring replacement
• Roofing work
• Electrical updates
• Plumbing updates
• Permits and inspections
• 10% contingency buffer

Anchor your budget in middle-range estimates.

Step 3: Create Your Detailed Timeline

Build a schedule with specific dates. Research realistic timeframes in your market. Call contractors. Check MLS data. Build from facts.

Step 4: Verify Your Available Finances

Confirm you have:

• 15-25% down payment available
• 3-6 months additional reserves for unexpected costs
• Bank statements proving your cash is ready

Step 5: Document Your Experience and Team’s

If experienced: Gather previous project contracts, closing statements, photos, and timelines.

If first-time: Document your team with licenses, references, and contact information.

From Quote to Approval

What Happens After Your Quote

If your quote meets expectations, apply formally immediately.

If your quote came in lower than expected, speak with a loan officer first about strategy adjustments before committing.

What Formal Application Requires

Submit complete documentation:

• Personal financial information
• Tax returns (past two years)
• Recent bank statements
• Property photos and detailed descriptions
• Your signed purchase contract
• Your comparable market analysis
• All contractor estimates
• Your complete project timeline

Stormfield orders a professional appraisal to verify your ARV estimate independently.

Underwriting Timeline

Stormfield typically approves applications within 5-10 business days. Their in-house underwriting team and direct lending model mean no committee delays.

Closing and Funding

Closing typically happens within 5-7 additional business days after approval.

Total timeline: 10-14 days from initial quote to entirely funded fix and flip loan.

Common Mistakes That Stop Deals

• Inflated ARVs
• Understated renovation budgets
• Unverified experience
• Loose timelines
• Missing documents

All of these are avoidable with proper preparation.

Why Stormfield’s Process Works

Stormfield Capital built its app to remove barriers between investors and capital. Stormfield provides estimates in just five minutes.

You get clarity early, faster decisions, and fewer surprises. The quote gives direction, turning preparation into funding.

With the guesswork removed, funding comes down to execution, not uncertainty.