Borrower guide
Finding fix-and-flip lenders that actually close
Private lenders originated roughly $125.6 billion across 238,600 loans in the first ten months of 2025 — and the top 10 lenders held just 21% of the market. The capital is out there. The problem is knowing which lenders perform.
The fix-and-flip capital market is deep — and fragmented
Nearly 13,631 private lenders competed for business through October 2025, up 17% from the year prior. Fragmentation is good for pricing — lenders compete for your deal — but it makes discovery and vetting expensive. Fewer than 12% of active private lenders have any verifiable online reputation, so most operators fall back on whoever a friend used last year.
That is a weak selection process for the largest line item on your deal. Comparing three verified lenders on the criteria below routinely saves more than a point of total cost — and protects your closing date.
The 6 criteria that separate lenders
Verified closing speed
The quoted close time and the actual close time are different numbers. Competitive fix-and-flip lenders close in 7–14 days. Ask for review-confirmed evidence, not marketing copy.
Leverage that matches your model
Typical structures run up to 85–90% loan-to-cost on purchase plus 100% of rehab, capped around 70–75% of after-repair value. A lender advertising higher leverage but re-trading at close is worse than one quoting honestly.
Draw process speed
Slow draw funding stalls rehab crews and burns holding costs. Ask exactly how draws are inspected, how fast they fund after inspection, and what each draw costs.
Full fee stack
Origination points (typically 1–3), underwriting, doc prep, draw inspections, extension fees, and exit fees. Compare lenders on total deal cost, not headline rate.
Extension behavior
Flips run long. Know the extension cost and approval process upfront — and how the lender has historically treated borrowers who needed one.
Post-commitment reliability
The most expensive lender behavior is invisible until closing week: re-trades, surprise re-appraisals, disappearing processors. Borrower reviews are the only reliable way to see it coming.
A 30-minute lender comparison process
- Search the LendLedger directory filtered to fix-and-flip, hard money, and bridge lenders active in your market.
- Shortlist 3–5 verified profiles and read borrower reviews for closing reliability and draw speed.
- Request term sheets from each and normalize to total deal cost: rate + points + all fees over your expected hold.
- Run the 7-step vetting checklist on your top choice before signing.
Compare verified fix-and-flip lenders in one search.
Filter by product type and market. See verified status, borrower reviews, and review-confirmed close times side by side. Free to search.
Frequently asked questions
What is a fix-and-flip loan?
A short-term loan — typically 6 to 18 months, interest-only — used to purchase and renovate a property for resale. Most are underwritten primarily against the property and the operator’s track record rather than personal income, which is why private and hard money lenders dominate the space.
How much do fix-and-flip loans cost in 2026?
Most fix-and-flip loans price between roughly 9.5% and 12.5% interest with 1–3 origination points, varying with operator experience, leverage, and market. Add underwriting, draw, and possible extension fees when comparing total cost — the headline rate alone is misleading.
How do I find private lenders for fix-and-flip deals?
The main channels are directories and platforms like LendLedger, investor communities such as BiggerPockets, broker referrals, and local REIA meetups. The gap in most channels is verification — LendLedger lists lenders across hard money, bridge, and fix-and-flip with verified profiles and borrower reviews, so you can vet while you search.
What credit score or experience do fix-and-flip lenders require?
Many private lenders will fund first-time flippers at lower leverage and higher pricing; experienced operators with 3+ verifiable completed flips get the best terms. Credit minimums commonly sit around 620–660, but track record moves terms more than score in this asset class.
Should I use a hard money lender or a private lender for a flip?
The terms overlap heavily: "hard money" usually refers to professional asset-based lending firms, while "private lender" can also include individuals and small funds. What matters more than the label is verified closing speed, honest leverage, transparent fees, and how the lender behaves post-commitment.
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