Financing your first fix and flip
Quick answer
You can finance your first flip without experience. Lenders fund first-timers who bring a solid deal, adequate cash reserves, and a realistic, comparable-backed ARV — though you may face a slightly larger down payment or rate until you've closed a few.
Most fix and flip loans cover up to ~90% of the purchase and 100% of the rehab budget, released in draws.
The first deal feels like the hardest to finance. It's really just the one where you have the least to point to, so the deal itself has to carry you.
Lenders fund beginners all the time. They just want to see that you understand the numbers and have a cushion for when things run over — because they will.
Key takeaways
- → First-timers can get funded with a strong deal and reserves — experience isn't mandatory.
- → Expect a slightly bigger down payment or rate until you've closed a few projects.
- → ARV drives your loan — back it with real comparable sales.
- → Over-budget the rehab and timeline; reserves cover the surprises.
What lenders need from a first-timer
A solid property with a realistic ARV comes first. Then enough reserves to cover carrying costs and overruns, which reassures the lender you won't stall mid-project.
Your credit and income help but don't carry the deal the way the property does. The fix and flip overview covers how ARV sizes your loan.
How much money you need
Plan for the down payment (often 10 to 20% of the purchase), closing costs, and a reserve. Lenders fund most of the purchase plus the rehab, but the cushion is on you.
Run the numbers conservatively. A deal that only works if everything goes perfectly isn't a deal — it's a gamble.
Avoiding rookie mistakes
The classic first-deal error is under-budgeting the rehab and the timeline. Pad both.
Carrying costs run every month you own the property, so a renovation that drags eats your margin fast. Plan the exit — sale or refinance to a rental — before you buy.
Best lenders for first-time flippers
Best fix & flip lenders for beginners
Best Overall — Same-Day Funding Across Six Loan Types Ad
Best Line of Credit for Cash Flow
Best Invoice Factoring for Contractors
eBoost Partners can match newer investors to bridge and rehab financing through its bridge construction financing.