Purchase and renovation
A purchase contract and contractor budget show what must be funded now and what is needed later. Separate cosmetic work from structural changes and additions.
Acquisition · Renovation · ResaleFix and flip capital.
Fix and flip capital.
Room to execute the plan.
Acquisition and renovation financing for investors improving property for resale. We review the purchase, rehab budget and resale plan to explore suitable lender options.
The short answer
Fix and flip financing
A fix-and-flip loan can finance the purchase and approved renovation of an investment property, with repayment planned from a sale. Stonehaven is a brokerage that helps compare lender structures, including up to 100% eligible LTC on qualifying deals. The renovation scope, after-repair value and cash available between draws all matter.
- Project review
- Purchase, renovation budget and resale plan
- Financing review
- Acquisition, eligible rehab costs and the resale plan
- Potential leverage
- Up to 100% eligible LTC on qualifying deals, subject to underwriting
Match the capital to the scope
Property already owned
Supply the current payoff and remaining work, not just the original purchase price. Explain any completed work, open permits and changes from the original budget.
Heavy rehab or rebuild
A substantial addition or teardown can follow a construction path rather than a standard renovation path. Resolve the scope and permitting assumptions before comparing leverage.
The terms that change your cash requirement
High leverage is useful only when the release of funds matches the project’s needs. Compare the same cost basis and timing in every proposal.
| Question | Why it matters | Ask for |
|---|---|---|
| How much funds the purchase? | An acquisition advance may be smaller than the overall commitment. | The closing advance and cash-to-close calculation. |
| How is rehab funded? | A renovation allocation is not necessarily cash available on day one. | Draw milestones, inspections and reimbursement rules. |
| What does the value support? | After-repair value is an estimate, not a guaranteed sale price. | The accepted comparable sales and valuation basis. |
| What if the sale is delayed? | Carrying costs and maturity can erode a thin margin. | Extension conditions, reserve assumptions and payoff terms. |
Transparent assumptions
Example: a $2.5 million renovation project
Hypothetical sensitivity exercise, not a transaction or loan quote. Assume every cost below is included in the planning budget; actual lender eligibility can differ.
- Purchase
- $1,600,000
- Renovation
- $600,000
- Other project costs, reserves and contingency
- $300,000
- Assumed total project cost
- $2,500,000
- Assumed after-repair value
- $3,200,000
- Illustrative financing request
- $2,250,000
The $2.25M request equals 90% of total assumed cost and about 70.3% of the assumed after-repair value. That leaves a $250,000 arithmetic cost gap before lender adjustments or excluded items.
If total cost rises 10% to $2.75M and the resale value falls 10% to $2.88M, only $130,000 separates the two figures. That is not net profit: any selling expenses, taxes or other costs outside the assumed budget still reduce it.
Reconcile the budget with the actual quote and test a later sale date. A lender willing to fund a high percentage of eligible costs does not remove construction, market or liquidity risk.
Three decisions before you choose a lender
Define the scope
Collect bids and identify permits, structural work, vacancy and any work already started. An undefined scope creates a weak budget.
Map the draw gap
List contractor deposits and the work you may have to pay for before reimbursement. Compare that gap with accessible cash, not just estimated property equity.
Validate the exit
Use recent comparable sales and a realistic marketing period. If keeping the property is the backup plan, test its rental financing separately.
Your fix-and-flip review checklist
- Purchase contract or ownership details, current debt and expected closing date.
- Property location, current condition and renovation scope.
- Line-item contractor budget with a contingency and expected completion date.
- Comparable sales supporting the after-repair value estimate.
- Investor and contractor experience with similar work.
- Financing requested, available cash and the intended sale or alternative exit.
Questions before you start
Can a fix-and-flip loan cover 100% of costs?
Some qualifying deals can be considered for up to 100% of eligible project costs through our lender relationships. Ask exactly which costs qualify and whether additional equity, liquidity or collateral is required. Financing every eligible cost does not mean every expense is funded.
Are 100% LTC and 100% ARV the same?
No. LTC compares the loan to the lender’s recognized costs. ARV is the estimated after-repair value. A loan that covers all eligible costs can still be well below that value. Stonehaven is not advertising 100% ARV financing.
What if I want to refinance and keep the property?
Tell us before choosing the initial structure. For a rental exit, the expected rent, expenses and takeout requirements should support the planned payoff. Approval for a rehab loan does not guarantee a later refinance.
Will someone call me?
We follow up on this form by text. Our aim is initial deal feedback in under one hour after your inquiry reaches the team. Underwriting and final terms require a separate review.
Project review
Show us your next fix-and-flip project
Share the basics. We follow up by text and aim for initial deal feedback in under one hour. Initial feedback is not credit approval.
Keep account numbers, tax records and private documents out of this public form. We can arrange a secure next step for documents.
Related guides and examples
Planning a teardown or new build?
See how construction costs, land equity and draws fit together.
Explore →What 100% LTC can leave out
Review cash needs that a financing percentage does not explain.
Explore →A related construction closing
Company-reported Brookhaven case. It is a construction example, not a fix-and-flip approval promise.
Explore →Sources and editorial standards
The OCC’s CRE handbook describes rehabilitation lending and the need to assess the feasibility of the business plan. Its framework provides general context; it does not set the terms of private lender programs arranged by Stonehaven.
Updated September 20, 2026. Editorial standards · Meet the team
Prepare the next decision
Prepare a rehab draw cash-flow plan and separately evaluate a flip-to-rental refinance exit if the sale is delayed.
For a first project, read our first fix-and-flip financing guide. Its worked example separates the acquisition advance, rehab funds, cash requirement and estimated profit after selling.
For a project in design or approaching construction, the construction financing guide for architects connects plans, scope, budget and the draw schedule. Review it with the client and builder to prepare questions about costs and change orders before seeking financing.