What a fix and flip loan actually is
A fix and flip loan — often called a hard money rehab loan — is short-term financing built around the deal rather than around your W-2. It funds the purchase and the renovation, releases the rehab in draws as work is completed, and is sized against the property's After Repair Value (ARV) instead of its as-is price.
Because the plan is to renovate and resell, terms are short and commonly interest-only, with the loan paid off when the property sells or refinances. That structure is what lets an investor move on a distressed or value-add property that a conventional mortgage would never touch.
How much you can borrow
A fix and flip loan is generally sized to the lower of two ceilings: a share of the total project cost (purchase price + rehab budget) and a share of the After Repair Value (ARV). Those shares are set by each lending partner's program and vary with your experience and the deal, so Clear Path does not quote one network-wide figure. The quick calculator on our home page uses CPC's own preliminary sizing assumption — not any lender's program terms.
- Leverage set by the lending partner's program for your experience and deal
- Loan amounts from $100K to $5M+
- Short terms, commonly interest-only
- Rehab funds released in draws as the work is verified
“Fix and flip loan” and “hard money” are the same idea
Hard money simply means asset-based lending: the loan leans on the property and the plan more than on tax returns and debt-to-income ratios. A fix and flip loan is the most common hard money product investors use, so the two terms get used interchangeably.
Here's where a broker matters. Clear Path is not a single direct lender tied to one rate sheet — we shop your scenario across multiple private and hard-money lenders and bring back the structure that actually fits the property, the market, and your exit. On a tight deal, that difference is often what separates a project that pencils from one that doesn't. We don't fund loans ourselves; we place them with licensed lender partners and stay in the deal through closing.
First-time flippers are welcome
A first deal is not a disqualifier. Asset-based lenders weigh the strength of the project alongside your background, and a clean, well-positioned submission from a first-timer often beats a sloppy one from a veteran. What helps your file most:
- A realistic ARV backed by comparable sales, not best-case hope
- A defined rehab scope and a contractor lined up
- Liquidity to cover your down payment, carrying costs, and a reserve
- A clear exit — resale timeline or refinance plan
Why submit through Clear Path
One clean submission gets your deal in front of the lender programs that appear to fit it, instead of you cold-emailing a dozen lenders one at a time. You'll get a straight answer quickly — and an honest no on a deal that doesn't fit beats weeks of slow-rolling.
And your time isn't a lead magnet: you submit the scenario in a few minutes, and supporting documents are only requested once the deal clears initial review. Everything runs through one channel — deals@clearpathcapfunding.com — with a person on the other end, not a drip campaign.
Frequently Asked Questions
Because these are asset-based loans, credit carries less weight than the deal itself — the property, the ARV, your liquidity, and your exit. Minimum scores and other requirements vary by lending partner and scenario, and a strong deal can offset a thinner file. Clear Path is a broker and does not set or guarantee credit terms; final approval and pricing come from the funding lender.
Clear Path returns an initial review within 24 hours of a complete submission. A typical closing then takes about two to three weeks, though some close faster and some take longer — timing depends on the lender, title, and appraisal, and varies by deal and market. No closing date is guaranteed.
Yes. A first project is considered on the strength of the deal and your plan — realistic ARV, defined rehab scope, adequate liquidity, and a clear exit. Bringing those to the table meaningfully improves your odds.
A fix and flip loan is short-term financing for buying, renovating, and reselling a property. A DSCR or rental loan is longer-term financing for holding a property as a rental, qualified on the property's cash flow. If your plan is to keep the property after the rehab, a DSCR or rental loan is usually the better fit.
No. Clear Path arranges business-purpose loans on non-owner-occupied investment property only — these are not consumer mortgages, and they are not for a home you intend to live in.
Size your deal, then send it over.
Run the numbers in about ten seconds — max loan, project-cost gap, LTV and LTC, no email required — then submit the scenario and get a real answer in 24 hours.