Fix and Flip Loan Requirements: What Lenders Actually Check

Fix and flip loan requirements are different from every other type of real estate financing. There are no W-2s, no tax returns, no debt-to-income calculations. The question a bridge lender asks is not how much you earn. It is whether the deal makes financial sense at the numbers you are proposing. That shift changes everything about who can qualify and how fast the process moves.

This guide covers every requirement that matters for a fix and flip loan approval: the credit score thresholds, the LTC and ARV math that drives your term sheet, the property types and conditions that qualify, and how the application process works at a lender that issues term sheets in 24 hours and closes bridge loans in 48.

What Fix and Flip Lenders Actually Care About

Bridge lenders use a deal-first underwriting model. A well-qualified borrower with a bad deal gets declined. A 600-credit borrower with clean deal math gets funded. That is not a cliche. It is how the product is structured, and it is why fix and flip financing works for investors who are blocked by every conventional lender on their list.

Four variables drive every fix and flip loan approval. Understand these before you submit and your term sheet will look exactly like you expected.

When those four variables produce a deal that makes financial sense, a well-capitalized lender can move without delay. That speed matters because distressed property sellers expect fast closes. A lender who needs 30 to 45 days cannot compete with cash buyers. Capital Partner Loans issues term sheets within 24 hours of a complete deal submission and closes bridge loans in 48 hours when the deal is clean and title is clear.

The fastest deals are submitted by investors who arrive prepared. Before you put a deal together, read our guide on how to close a hard money loan fast so you know exactly which documents to have in hand before you submit.

Credit Score Requirements for Fix and Flip Bridge Loans

The credit score floor for a fix and flip bridge loan through Capital Partner Loans is 600. Most investors are surprised by how accessible this is compared to conventional investment property financing. Your credit score does not determine whether you qualify. It determines the terms you receive.

Here is how each credit tier maps to bridge loan terms:

What bridge lenders do look at in your credit profile: active foreclosures and open bankruptcies are typically disqualifying. Open collections on real estate-related accounts draw close scrutiny. Lenders also look for sufficient liquidity to confirm you can cover the down payment, closing costs, and carrying costs during the renovation period without relying on the loan itself.

What bridge lenders do not look at: your debt-to-income ratio, your employer, your W-2 income, your self-employment documentation, or the number of investment properties you already own. A portfolio investor with 30 rental properties and complex personal taxes qualifies on exactly the same terms as someone submitting their first deal. The deal is the application.

For a full breakdown of what investors with 600 scores can access and where the program boundaries actually sit, see our post on hard money loans with a 600 credit score.

LTC, ARV, and Down Payment: The Numbers That Drive Your Term Sheet

LTC is the most important number in fix and flip underwriting. It determines how much of your total project cost the lender will fund. Getting this math right before you submit protects you from surprises at the closing table.

Key Term

LTC (Loan-to-Cost)

Loan-to-Cost is the ratio of your loan amount to total project cost, where total project cost equals purchase price plus renovation budget. If your total cost is $250,000 and your lender funds at 93% LTC, the loan is $232,500 and you bring $17,500 to closing. LTC differs from LTV (loan-to-value), which compares the loan to the current as-is property value rather than the all-in cost. On high-rehab deals, LTC is almost always the more borrower-favorable metric. For a deeper look at how these ratios interact in practice, see our LTV, LTC, and ARV explained guide.

Here is how the LTC and ARV math plays out in a hypothetical deal scenario:

ARV matters for a second reason beyond your gross margin. Some lenders also cap the loan as a percentage of the after-repair value in addition to applying an LTC limit. If a lender sets a 70% ARV cap and your ARV is $340,000, the maximum loan is $238,000 regardless of your LTC. Capital Partner Loans uses 93% LTC as the primary underwriting constraint on fix and flip bridge loans. For high-rehab deals where renovation creates significant value above the purchase price, the LTC ceiling is almost always the more favorable constraint.

Down payment follows directly from LTC. At 93% you bring approximately 7% of total project cost to closing. On a $200,000 total project, that is $14,000. On a $400,000 project, that is $28,000. The exact figure depends on which LTC tier the lender approves for your specific deal, which in turn reflects your credit score, deal quality, and market. Investors who want to model this before submitting should work backward from available capital to determine the maximum total project size they can support at a given LTC.

Property Requirements and Scope of Work

Bridge lenders expect properties to need work. Unlike conventional lenders who require a property to meet minimum habitability standards before they fund, fix and flip bridge lenders are built specifically to finance distressed assets. A gut-rehab with no kitchen, no functional HVAC, and damaged subflooring is a normal deal. That is the point of the product.

Property types that qualify for fix and flip bridge financing:

Properties that typically fall outside bridge loan programs:

Scope of work. Most lenders require a basic scope of work with a contractor estimate. On light cosmetic rehabs (paint, flooring, fixtures, landscaping), an itemized contractor quote is usually sufficient. For heavier work involving structural changes, additions, or full gut rehabs, the lender may require a more detailed breakdown from a licensed general contractor. First-time investors are often asked to use a licensed contractor regardless of rehab depth. Capital Partner Loans does not require a licensed GC on every deal, but having one accelerates underwriting.

No appraisal required. Capital Partner Loans closes fix and flip bridge loans without a formal appraisal. An internal desktop valuation confirms the deal economics in place of a scheduled appraiser. This removes 2 to 3 weeks from the typical lending timeline and is one of the most meaningful speed advantages in the product. For a full breakdown of how the no-appraisal structure works and what it means for your acquisition timeline, see our post on fix and flip loans with no appraisal.

Fix and Flip vs Conventional vs DSCR: Requirements Side by Side

Understanding where bridge loans sit relative to the rest of the investor financing stack helps you choose the right product at each stage. The table below shows how the three most common investor loan types differ across the requirements that actually matter at origination.

Most experienced investors use all three products at different stages. Bridge loans handle the acquisition and rehab. A DSCR rental loan handles the long-term hold after stabilization. The table above shows why trying to run a rehab deal through a conventional lender creates problems: income documentation requirements, 30 to 45 day timelines, and LTV caps that leave high-rehab deals underfunded from the start.

If you plan to hold the renovated property as a rental, the BRRRR bundle from Capital Partner Loans packages your bridge acquisition loan and DSCR refinance into a single committed financing structure so you know the exit terms before you close on the buy. Investors building ground-up rather than rehabbing existing structures should look at the new construction loan program, which carries its own draw schedule and qualification requirements separate from the bridge program.

How to Apply for a Fix and Flip Loan Through Capital Partner Loans

The fix and flip loan program at Capital Partner Loans is structured around speed. Here is what the process looks like from submission to funded loan:

What you do not need: W-2s, tax returns, pay stubs, employment verification, or any personal income documentation whatsoever. The deal is the application. Your income is not part of the equation.

What you should have ready before submitting: a signed purchase contract or clearly defined deal terms, a renovation budget with a contractor estimate, and entity documentation if you are borrowing through an LLC. These three items are the consistent separator between deals that close in 48 hours and deals that drag into the following week waiting on paperwork.

The minimum loan size is $75,000. There is no maximum property count. Capital Partner Loans is active nationally across major metro markets. Investors with 20 active bridge loans are evaluated on the same terms as investors closing their first deal.

Frequently Asked Questions

This content is for informational purposes only. Capital Partner Loans is not an attorney, CPA, or licensed financial advisor. Consult qualified professionals for advice specific to your situation.