1) Pass the 70% rule. 2) Set a defensible ARV. 3) Build a real scope of work (+15–20% contingency). 4) Line up cash to close + reserves. 5) Check credit (620+) & entity. 6) Plan the exit (sell or BRRRR). 7) Shop & close (5–14 days). See Requirements.
The 7 steps to qualify
Analyze the deal against the 70% rule
Purchase ≤ ARV × 0.70 − rehab. If it passes, the margin is there. Calculator →
Set a defensible ARV
Support it with recent, comparable, nearby sold comps — not listings. This drives your leverage.
Build a real scope of work
Line-item budget + licensed contractor bids + 15–20% contingency. Sizes your draws.
Line up cash to close & reserves
Down payment, points, costs + reserves to carry. Confirm proof of funds.
Check credit & entity
620+; vest in your LLC/entity (business-purpose). No tax returns.
Plan your exit
Sell, or refi to DSCR (BRRRR). Decide before you buy.
Shop the deal & close
Shop on total cost, order the ARV appraisal, close in 5–14 days. Rates →
Strengthening a weak / first-timer file — the routing table
| If your weak spot is… | Route around it by… |
|---|---|
| No flip experience | Start cosmetic; partner with an experienced co-sponsor |
| Thin margin / fails 70% rule | Re-negotiate price, cut rehab, or pass |
| Shaky ARV | Re-comp with conservative recent sold comparables |
| Rough rehab budget | Get licensed contractor bids + a contingency |
| Limited cash to close | Cross-collateralize equity from another property |
| Higher rate/points quoted | Lower leverage; shop lenders on total cost |
| Unclear exit | Pre-plan sell or a DSCR refi (BRRRR) |
Fix & flip qualifying FAQs
First step to qualify?
Pass the 70% rule — purchase ≤ ARV × 0.70 − rehab. That's the foundation.
Can I qualify for my first flip?
Yes — strong deal, defensible ARV, contractor scope, 620+ credit, cash to close. Start cosmetic.
How much cash?
Down payment, points, costs + reserves. Zero-down usually needs cross-collateral.
Weak file?
Route around it — sharpen the deal, conservative ARV, contractor bids, reserves, or a co-sponsor.
Need experience for the best rate?
Completed flips raise your tier (lower rate/points, more leverage) — but first-timers still get funded.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.