Ever wondered what really happens behind the scenes when a private lender evaluates your deal? Or why do some investors get approvals in days while others wait weeks?
This guide breaks down what private lenders really look for. You will learn the steps to prepare your deal, get approved faster, and close without delays and issues.
Fast fix and flip loan approval means you lock up the property, get the crew on-site, and start making money sooner.
What Fix and Flip Lenders Look For (Key Eligibility Criteria)
Private lending is fast because it is based mostly on the asset (the property), not your personal income. But you still need to tick a few boxes. Here is the short list of what every lender checks.
Credit Score Requirements
Even if the loan is secured by the property (asset-based), your credit history shows how you manage risk. A more complex project (e.g., a new construction) might require a higher credit score than a light rehab project. A good score shows you are reliable when things get tight.
When the deal has strong fundamentals, e.g., a low loan-to-value, a clear scope of work, strong comps, and a solid exit strategy, lenders may be more flexible on credit score requirements
Down Payment / Skin in the Game
Your down payment is the cash you must bring to the deal. Expect to put 10% to 20% of the total project cost (purchase price + rehab) as a down payment.
Private Lenders determine this amount using ratios such as LTV (Loan to Value), LTC (Loan to Cost), and ARV (After Repair Value) caps. These ratios are just different ways of ensuring you (the investor) have skin in the game and the lender has a margin of safety.
- LTC: They may lend up to 80-90% of the purchase price and 100% of the rehab costs.
- LTV: They also cap the loan at a certain percentage of the house’s ARV (usually 65% to 75%). This is their safety net.
Property Type & Deal Viability
The property itself is the collateral. It has to be a safe bet. The property must be non-owner occupied (you can’t live in it).
- What Qualifies: Single-family homes (SFR), 2-4 unit multi-family properties, and townhomes or condos.
- What Deals Lenders Avoid: Lenders avoid projects involving vacant land or land development. They also avoid special-purpose commercial properties such as churches or restaurants. Early pre-development or horizontal development work is generally not eligible.
Experience Level (New vs. Experienced Investors)
Experience directly affects your rates and terms.
- First-Time Investors: If this is your first time, you can still get a loan. Private lenders will look harder at your personal finances, your credit, and the deal’s profit margin. In such a case. They might also require a higher down payment.
- Experienced Flippers: 2+ successful flips in the last few years prove that you can execute. You get better rates and faster closings.
Income Verification
Unlike bank mortgages, fix-and-flip loans are light on documents for income verification.
- No Tax Returns: Lenders do not usually ask for W-2s, tax returns, or long employment history.
- Liquidity Check: Lenders do need to see bank statements or a Proof of Funds (POF) letter. They will verify that you have the cash reserves to cover the down payment, closing costs, and any unexpected overruns during construction.
Step-by-Step: How to Qualify for Fix and Flip Loans Faster
Preparation makes all the difference between a 7-day and a 30-day closing. Use this checklist to be prepared.
Lenders offering dedicated fix and flip financing are typically able to move faster when borrowers come prepared with clear documentation and deal details.
Step 1: Prepare Your Documents
It is advisable to store all digital documents in one folder. You could then easily access them when needed. Keep the following handy.
- Proof of Funds: Current bank statement showing you have the cash for the down payment and reserves.
- Credit Report: Know your score and be ready to explain any recent issues.
- Entity Documents: Private lenders prefer that you use an LLC for flipping. If you already have an LLC, keep the formation papers ready.
Step 2: Find a Profitable Property
Be sure of the numbers.
- ARV First: Determine the After Repair Value (ARV) before you make an offer. Look for comparable properties. Many websites let you find the comps.
- The Formula: Use the 70% Rule as a rough starting point. Your purchase price and rehab should not exceed 70% of the ARV.
- Avoid Bad Inventory: Focus on properties with clear titles and manageable conditions. Avoid deals weighed down by title defects, significant environmental issues, or severe structural failures.
Step 3: Create a Detailed Rehab Budget
A good lender needs a specific plan, not a guess.
- Line-Item Budget: Provide a detailed list: new roof, new HVAC unit, new cabinets, paint, flooring, etc.
- Scope of Work (SOW): This should match your budget. A clear SOW proves to the lender you know exactly what you are doing and how much it will cost. This makes the lender trust you.
Step 4: Estimate ARV with Confidence
- Use Market Comps: Find 3–5 recently sold (in the last 6 months) properties within a half-mile radius that are the same size and type as your fixed-up house will be.
- Match Finishes: Your comps need to have the same quality of finishes (granite vs. laminate, etc.) that you plan to install.
- Be Conservative: Lenders like to see a buffer.
Step 5: Identify Fix and Flip Lenders
Look for a lender that understands your market and your business.
- Hard Money vs. Private: Know the difference. Private lenders like Stormfield Capital focus on speed, flexibility, and the deal.
- National vs. Local: A national lender may have a faster platform, but a local lender may know the neighborhood better.
For renovation and resale projects, purpose-built fix and flip loans are often better aligned than generic hard money products.
Step 6: Submit Required Documentation
Submit everything requested, all at once, in a clear format. The number one reason for slow approvals is missing or messy documents. A lender with a digital platform can provide you with a seamless closing.
Tips to Get Approved Faster
The following keeps you at the head of the queue:
- Have Your Contractor Lined Up: A signed bid from a reputable contractor proves the rehab costs are realistic and the work can start on Day 1.
- Prepare Comps Ahead: Don’t wait for the lender to ask for comps. Include your best 3-5 comps with the initial application. It shows you did your homework.
- Submit a Clean Scope of Work (SOW): A SOW that is disorganized or vague will get sent back for revision. Keep it clean, itemized, and realistic.
- Maintain Liquidity: Do not empty your bank account right before applying. The lender will re-verify your cash reserves just before closing.
Why Choose Stormfield Capital for Fix and Flip Loans
We built our process around what flippers and builders actually need: speed and trust.
- Digital Experience: Apply, sign, and track your fix-and-flip loan on our secure platform from your phone.
- Fast Closings: We process quickly because we focus on the asset, not just the paperwork. Our goal is to get you cash in hand, in as few as 7 days.
- Flexible Underwriting: We don’t use a single, rigid formula. If your credit took a minor hit, but the deal’s margins are great, we use common sense. We underwrite the whole deal, not just one number.
- Personalized Support: You work with a real person who understands construction. When you need a draw, you get fast inspection and payment. We treat your deal like a partnership.
Getting a fix and flip loan can be fast. It comes down to one thing: preparation.
If you take the time to organize your finances, build a realistic budget, and find a solid deal, you have done most of the work.
See which loan actually fits your flip.
Flipping succeeds when money flows at the same pace as the work. A structured fix & flip loan keeps your project moving, while generic hard money often slows it down.
Ready to stop waiting and start building?
Apply for a fix and flip loan with Stormfield Capital today to get your deal qualified fast.
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Stormfield Capital is a direct balance-sheet lender offering financing solutions for residential investment projects, including fix and flip, bridge, and new construction loans. With fast decisions, consistent draw processes, and reliable funding, Stormfield supports investors across the Northeast and other key U.S. markets.
If you’re evaluating financing for an upcoming flip, Stormfield’s team can help you compare your options and understand the best structure for your project. Contact us to discuss your deal or get a quick quote.
