Fix and flip loans in Boston and across Massachusetts

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 Massachusetts

Massachusetts has some of the oldest housing in the country, and that shapes the typical flip here. Triple-deckers, colonials and capes often need new electrical, plumbing and heating systems, not just kitchens and baths. Build those items into your scope of work, because the rehab budget you submit is what your draws are paid against.

Two state rules come up often. Homes built before 1978 fall under the Massachusetts lead law, which matters if you plan to keep the property as a rental. Properties on a septic system need a Title 5 inspection when they change hands. Neither one stops a deal, but both 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 title or closing attorney’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.