# Fix and Flip Loans with No Appraisal Required: How Bridge Lending Works



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Fix and Flip Loans with No Appraisal Required: How Bridge Lending Works

Most hard money lenders skip the appraisal. Here's how no-appraisal fix and flip bridge loans work, what lenders use instead, and how to close faster.

Fix and Flip Loans with No Appraisal: How Bridge Lending Actually Works

Most hard money lenders skip the appraisal. Here is how no-appraisal fix and flip bridge loans work, what lenders use instead, and how to close faster.

## Do fix and flip loans require an appraisal?

Most institutional bridge lenders and hard money lenders do not require a traditional appraisal for fix-and-flip loans. Instead, they use faster valuation methods such as broker price opinions (BPOs), desktop valuations, or internal comp analyses. This allows them to close significantly faster than conventional lenders that require a full appraisal, which can take 5 to 21 days depending on the market and appraiser availability.

How fast can you close a fix and flip loan without an appraisal?

Without a traditional appraisal, well-prepared borrowers can close a fix and flip bridge loan in as little as 48 hours from term sheet acceptance. Realistic timelines for most borrowers are 5 to 10 business days. The speed depends on how quickly you can provide your documentation, how fast the title company can issue a commitment, and whether there are any title issues that need to be resolved before closing.

## What do hard money lenders use instead of an appraisal?

Hard money lenders use several alternatives to traditional appraisals, including broker price opinions (BPOs) completed by licensed real estate agents, desktop valuations using public data and automated valuation models, interior inspections paired with internal comp analyses, and the executed purchase contract price validated against comparable sales. These methods provide reliable property valuations in a fraction of the time a full appraisal would take.

## What is the maximum LTV on a no-appraisal bridge loan?

No-appraisal bridge loans typically offer up to 75% loan-to-value (LTV) based on the as-is property value and up to 90% loan-to-cost (LTC) covering both the purchase price and renovation budget. Lenders generally cap the total loan at 70 to 75% of the projected after-repair value (ARV). The lower LTV limits compared to appraised-value lending reflect the lender managing risk by requiring more borrower equity in the deal.

## Fix and Flip Loans with No Appraisal

Loan-to-Cost (LTC): Up to 90% of total project cost (purchase price + renovation budget)

## Loan-to-Value (LTV): Up to 75% of as-is property value

After-Repair Value (ARV): Typically lenders cap total loan at 70-75% of projected ARV

## Minimum loan amounts typically start at $75,000

Maximum loan amounts can reach $2,000,000 or higher depending on the lender

Credit score of 600 or higher (some programs go lower with compensating factors)

Property must be non-owner-occupied (investment property only)

Clear exit strategy: either sell the property or refinance into permanent financing

## Proof of funds for down payment and reserves

## Renovation budget and scope of work (for rehab draws)

Property must be residential: single-family, 2-4 unit, townhome, or condo

## Entity borrowing (LLC) is preferred but not always required