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: typically 6 to 18 months, 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
Clear Path works to a published box, so you know the rules before you spend an afternoon on a submission. A fix and flip loan is sized to the lower of two ceilings:
- Up to 90% of total project cost (purchase price + rehab budget)
- Up to 70% of the After Repair Value (ARV)
- Loan amounts from $50K to $5M+
- Typical terms of 6–18 months, 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 lenders most likely to fund it, instead of you cold-emailing a dozen of them one at a time. You'll get a fast yes or an honest, fast no — a quick 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. Many lender partners look for a mid-600s score, but specific requirements vary by 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. Actual closing speed then depends on the lender, title, and appraisal — experienced investors with clean files often close in one to two weeks, though timelines vary by deal and market.
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, cash-to-close, LTV and LTC, no email required — then submit the scenario and get a real answer in 24 hours.