Fix-and-Flip Loans in California

California fix-and-flip loans finance both the acquisition AND the renovation of an investment property in a single short-term loan, typically 6-18 months. The lender advances up to 90% of the purchase price at closing, then releases additional funds in 'draws' as renovation milestones are completed and verified by inspection. Interest is paid monthly on the outstanding balance only (interest-only). At the end of the term, the borrower either sells the property and pays off the loan from sale proceeds, or refinances into long-term financing (DSCR, conventional, etc.).

On a $500,000 acquisition + $75,000 rehab budget (typical California flip), expect to bring 10-15% of total project cost — about $50,000 – $80,000 — plus closing costs of around $12,000 – $18,000. Total out-of-pocket: roughly $65,000 – $100,000. The remaining 85-90% comes from the fix-and-flip loan. First-time flippers may need to bring 20% down (vs 10% for experienced flippers) until they complete 2-3 successful projects.

Save Financial's average fix-and-flip closing is 10 days from complete application. Repeat borrowers (3+ closed loans) often close efficiently. The fastest scenario: full cash-out application Monday, appraisal Tuesday, title work Wednesday, clear-to-close Thursday, sign and fund Friday. Speed matters because most California flip deals are sourced from auctions, wholesalers, or distressed sellers who require fast close commitments.

Not for the standard program — first-time flippers can qualify with strong credit (660+ FICO), 20% down on acquisition, and a realistic scope of work backed by contractor bids. For 90% leverage, most lenders require 2 – 3 successfully completed flips in the prior 36 months. Save Financial offers a 'first flipper' program that allows higher use for new investors paired with an experienced contractor or partner.

Yes — much higher. Fix-and-flip rates typically run 9% – 12% interest-only vs. 6.5% – 7% on conventional financing. However, because the loan term is only 6-18 months, total interest paid is often modest relative to the deal's profit. On a $400,000 loan at 10% for 9 months, total interest is about $30,000 — manageable when the flip nets $80,000 – $150,000 profit.

Yes. The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) uses a fix-and-flip loan for the acquisition and renovation phase, then refinances into a long-term DSCR or conventional loan after stabilization. Save Financial structures both loans simultaneously for BRRRR investors — fix-and-flip with a defined refinance plan at month 6-9 into a 30-year DSCR loan based on the property's rental income.

Most California fix-and-flip programs finance: single-family homes, condos, 2-4 unit multifamily, and small 5-20 unit multifamily on specialty programs. Mixed-use (retail downstairs, residential upstairs), distressed estate sales, and REO (bank-owned) properties are also typical. Properties NOT generally eligible: rural acreage over 10 acres, raw land, environmentally distressed properties, or properties in active condemnation.

After closing, you typically receive the acquisition funds plus a small initial draw. As renovation work is completed, you submit invoices and photos to the lender, who sends an inspector to verify the work. Once verified (usually 24-48 hours), the next draw funds to your account. Most projects have 4-6 draws across the renovation timeline. Save Financial's draw process is fully digital — submit via app, funds wired within 48 hours.