Fix and flip loans in Seattle and across Washington

How a fix and flip loan is sized

A fix and flip loan has two parts: money toward the purchase, and money for the renovation that is released in draws as work is completed. Together they cannot exceed 70 to 75% of the after-repair value (ARV), which is what the property should be worth once the work is done.

A worked example

Purchase price	$400,000
Rehab budget	$100,000
After-repair value	$700,000
Purchase financed at 90%	$360,000
Rehab financed at 100%	$100,000
Total loan	$460,000
ARV limit at 75%	$525,000
Cash to close, before closing costs	$40,000

Experience and credit

• New investors can qualify. With a 720+ credit score, first-time flippers are eligible for up to 90% of purchase and 100% of rehab.
• Experienced investors who have completed at least 5 flips in the last 2 years can close without an inspection or appraisal, at up to 75% of after-repair value.
• Lower credit scores are not a deal breaker. Programs go down to a 600 score at reduced leverage.

When we count experience, we look at the homes you have bought and sold in the last 24 months that you acquired within the last 36 months.

Terms that fit a flip

• Interest-only payments during the project
• Terms from 6 to 24 months
• No prepayment penalty, so you can sell or refinance as soon as the work is done
• No income or employment verification. The loan is underwritten on the deal

Mid-rehab loans

Already part-way through a project and short on capital? A mid-rehab loan lends against the property’s new as-is value and adds the money needed to finish the work.

Flipping houses in Washington

Most Washington flips are single-family homes. In Seattle, Tacoma, Everett and Spokane that often means a Craftsman or mid-century house that needs wiring, plumbing, a sewer line or foundation work, not just kitchens and baths. In the newer suburbs the work is more often cosmetic. Build every item into your scope of work, because the rehab budget you submit is what your draws are paid against.

Three local points come up often. Older homes around Puget Sound can have a buried heating-oil tank or a failing side sewer, so order a sewer scope before you close. Washington charges the seller a real estate excise tax on the sale price, so include it in your exit costs. And the wet season slows roofing, siding and site work from late fall to early spring. None of these stops a deal, but all three belong in your budget and timeline.

What to send us

To price a fix and flip loan we need:

• A loan application
• The signed purchase contract, or the original settlement statement if you are refinancing
• A line-item rehab budget with a specific scope of work
• Your insurance agent’s and escrow or title company’s contact details
• If you borrow through an LLC: articles of organization, EIN letter and operating agreement
• For experienced borrowers: a list of projects from the last 3 years with settlement statements for each purchase and sale

See the full hard money loan document list.