Fix-and-Flip Loans: What Serious Investors Need to Know Before Applying in 2026
Speed and transparency separate the lenders that close from the ones that ghost. Here is exactly what to expect when you apply for fix-and-flip financing with Sphinx Capital.
A borrower searched for fix-and-flip financing on a tablet while standing at a property. They applied in under 10 minutes. That single search generated a $10M lead.
The application was not a desktop form with 40 fields. It was a mobile-ready intake that asked for the numbers that mattered: purchase price, rehab budget, ARV, and timeline. The borrower had a signed contract, a contractor bid, and a clear exit strategy. The file was clean. The decision came back in hours, not weeks.
That is the experience we built for serious investors. Here is exactly how it works.
What You Get: Terms Without the Runaround
Most lenders bury their numbers behind a "talk to sales" gate. We do not. Here are the terms we underwrite fix-and-flip files to:
| Term | What You Get |
|---|---|
| Max LTC | 90% of total project cost |
| Max ARV | 75% of after-repair value |
| Rates | Start at 9.50% |
| Points | 1 to 3, depending on term and risk |
| Term | 6 to 18 months |
| Prepayment penalty | None |
| Close time | 10 days from full file |
The 90% LTC matters. On a $500K project, the difference between 80% and 90% LTC is $50K out of your pocket at closing. That is the difference between doing 2 deals this year or 3.
Our 6-Step Process: No Ghosting, Ever
Most lenders disappear after you submit. We built a process where you know exactly where your file stands at every step:
| Step | Timeline | What Happens |
|---|---|---|
| 1. Submit intake | Immediate | 10-minute online form from any device |
| 2. Early feedback | Hours, not days | Preliminary terms, structure, and questions |
| 3. Complete application | After you decide | Clear doc checklist, no surprises |
| 4. Third-party items | Automated coordination | Appraisal, title, insurance arranged |
| 5. Final underwriting | 2 to 3 days | All questions cleared, term sheet finalized |
| 6. Close | Day 10 | Funding coordinated, draw schedule in place |
Step 2 is the differentiator. Most lenders do not give you terms until Week 2 or 3. We give you early feedback on structure and leverage within hours so you can decide whether to move forward before you sink time into a full submission.
What to Submit for the Fastest Decision
A complete file moves in 10 days. An incomplete file sits in queue. Submit everything at once to signal that you are organized and serious. Here is the checklist:
| Document | Why It Matters |
|---|---|
| Signed purchase contract | Proves the deal is real and terms are locked |
| Scope of work (SOW) | Defines budget, timeline, and materials |
| Contractor bids | Validates cost estimates against the SOW |
| Comparable sales (comps) | Supports the ARV with recent, nearby sales |
| Proof of liquidity | Shows you can cover overruns and down payment |
| Entity docs (LLC, EIN) | Confirms borrowing structure |
| Insurance quote | Required before closing |
| Exit strategy memo | Clarifies resale or refinance plan |
It also eliminates the back-and-forth that adds days to every approval.
The Hidden Costs That Kill Fix-and-Flip Deals
The borrowers who get burned are not the ones who miscalculate rehab costs. They are the ones who get surprised by the lender:
| Hidden Cost | What It Looks Like | How to Avoid It |
|---|---|---|
| Application ghosting | Lender disappears after submission | Choose a lender with a transparent 6-step process |
| Slow closing | Deal expires before funding | Choose a lender who closes in 10 days from full file |
| Low LTC | You need more cash than expected | Confirm 90% LTC upfront |
| Prepayment penalty | Cannot refinance or sell early | Confirm no prepayment penalty before signing |
| Unclear fees | Rate is 9.50% but total cost is 12%+ | Ask for the full fee schedule in the term sheet |
Ask every lender these questions before you submit. If they cannot answer clearly, they are not ready to move at the speed your deal requires.
Quick Answers to Real Questions
How fast can you close? 10 days from a full file. Delays almost always come from incomplete documentation or a scope of work that changes mid-process. Lock your numbers before you submit.
Do you fund large deals? Yes. We have funded deals ranging from $200K single-family rehabs to $7.8M multifamily bridge projects. The deal size matters less than the deal quality.
Can I apply from my phone or tablet? Yes. You can apply from any device. The intake is optimized for mobile. Most borrowers complete it in under 10 minutes while at the property.
What documents do I need upfront? Start with the 8-item checklist above. You do not need tax returns or W-2s. We underwrite the property and the plan, not just the borrower.
Is there a prepayment penalty? No. Pay off early if your flip sells fast or you refinance into long-term financing.
What if my scope of work changes after closing? Handle changes as post-close draw order modifications, not as revisions during underwriting. Every revision mid-review triggers a re-underwrite and resets the clock.
When to Apply and When to Wait
Apply now if:
- You have a signed purchase contract.
- Your scope of work and contractor bids are finalized.
- You have liquidity beyond the down payment.
- Your exit strategy is supported by current market comps.
Wait if:
- The property is not yet under contract.
- Your scope of work is still changing.
- You cannot document liquidity or entity structure.
- Comps do not support your target ARV.
A premature application wastes your time and the lender's. A complete application, submitted at the right moment, gets a decision in 24 to 48 hours.
The 2026 Market Reality
Interest rates have stabilized but not dropped to 2021 levels. Material costs fluctuate by region. Labor availability still varies by metro. The investors who are closing deals in 2026 are not betting on rate cuts or construction discounts. They are underwriting conservative ARVs, building 15% to 20% contingency into their scopes, and choosing lenders who can close in 10 days instead of 2 months.
The fix-and-flip market is not dead. It is selective. The lenders who are active want deals with clear margins, experienced contractors, and borrowers who have done the homework before they apply. If you have a property under contract and a scope of work ready, submit your file and we will review it within 48 hours.
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