What Credit Score Do You Need for a Fix and Flip Loan?
6 minute read
May 30, 2023


If you’re considering entering the potentially lucrative world of house flipping, you’re probably wondering, “What credit score do you need for a fix and flip loan?”

Fix and flip loans are designed to help investors purchase, renovate, and resell properties quickly, maximizing profits in the process.

The process can also be risky for the borrower and the lender. Surprisingly, you don’t need a perfect credit score to land a fix and flip loan approval.

Qualify for a fix and flip loan.

Credit score requirements for top fix and flip lenders

The following are large multi-state fix and flip and hard money lenders and their credit score requirements.

Keep in mind that this is a very limited survey of lenders. You may have fix and flip companies near you that will help those with lower credit scores. Still, this will give you an idea of general guidelines in the market today.

What’s in this article?

Park Place Finance: 680
Viva Capital Group: 620
Lima One Capital: 660
RCN Capital: 620
Kiavi: 660
AMZA Capital: 650

Park Place Finance: 680 credit score

Here’s an overview of Park Place’s fix and flip requirements:

  • Loan Amounts: Park Place Finance provides loan amounts ranging from $75,000 to $2 million.
  • Loan-to-Value (LTV): The LTV ratio is capped at 70% of the property’s after-repair value (ARV). So a home that will be worth $300,000 after renovations could yield a maximum loan of $210,000 for the property acquisition and repair costs.
  • Interest Rates: Interest rates for these loans typically start at 9.99%, with terms ranging from 6 to 24 months.
  • Origination Fee: Borrowers should expect to pay an origination fee of 2% to 4%.
  • Credit Score Requirement: Their credit score requirement is 680, but only one partner must have this score. For instance, if your score is 650 and your partner’s is 700, your application should be considered. If you have a low credit score, work on finding a partner with better credit.
  • Experience: Ideally, borrowers should have prior experience in fix and flip projects. However, first-time investors may still be eligible for financing if they meet other criteria.
  • Clean history: No applicant may have had a foreclosure or bankruptcy in the past year.
Apply with Park Place. Start here.

Viva Capital Group: 620 credit score

Viva Capital Group offers fix and flip loans tailored for real estate investors seeking short-term financing to acquire, renovate, and sell properties. Here’s a snapshot of the key requirements for Viva Capital’s fix and flip loans:

  • Loan Amounts: Viva Capital provides loans ranging from $50,000 to $5 million, accommodating various project sizes and investor needs.
  • Loan-to-Value (LTV): 70% of the property’s ARV.
  • Interest Rates: Rates as low as 9.99%.
  • Origination Fee: 1% to 3% of the loan amount.
  • Credit Score Requirement: Viva Capital does not have a strict credit score requirement but recommends a minimum score of 620 for a higher likelihood of approval.
  • Experience: While previous experience in fix and flip projects is preferred, first-time investors may still qualify for financing if they meet other criteria.
Start your fix and flip loan with Viva Capital Group.

Lima One Capital: 660 credit score

Lima One Capital can provide fix and flip loans to those without prior flipping experience, but they must have a minimum credit score of 660, and the financed property should not require extensive rehab work, such as structural repairs.

They may not offer the lowest rates or fees among hard money lenders (starting at 7.5%), but are still rated as one of the top hard money lenders for fix and flip loans.

Additionally, their maximum loan amount is capped at 70% of the ARV, potentially requiring borrowers to cover a larger share of repair costs.

Here’s an overview of Lima One Capital’s Rates & Terms:

  • Interest Rate: 7.5% to 9.75% APR
  • Loan-to-Value Ratio (LTV): 90% of the loan-to-cost (LTC) and up to 70% of the LTV for renovation costs
  • Upfront Fees: 1% to 2.25% of the loan amount
  • Credit Requirement: 660 minimum credit score for inexperienced flippers
  • Investing Experience: None required
  • Maximum Loan Amount: $3 million
  • Prepayment Penalty: None
  • Property Types: Townhouse, single-family, multi-unit up to 4. No owner-occupied properties allowed.

RCN Capital: 620 credit score

For hard money lenders offering low down payment financing, competitive interest rates, and 100% coverage of renovation costs and fees for your next fix and flip, consider RCN Capital.

RCN Capital’s after repair value (ARV) loans finance up to 85% of your fix-and-flip property’s purchase price and 100% of renovation costs, not exceeding 67.5% of the property’s after repair value (ARV).

With interest-only loan rates starting at 10.24% for experienced investors and terms up to 12 months, this loan accommodates various property types, including condos, townhouses, single-family and multifamily homes, and mixed-use properties.

RCN Capital Rates & Terms for 2023:

  • Interest Rate: 10.24%-10.99% (depending on investing experience)
  • Loan-to-Value Ratio (LTV): Up to 85% of purchase price +100% of renovation cost (not exceeding 67.5% of ARV)
  • Upfront Fees: 2% to 5% of the loan amount
  • Credit Requirement: 620 minimum credit score
  • Investing Experience: Investors must have completed at least two flips or two rentals
  • Maximum Loan Amount: $7.5 million (up to $10 million for 5+ units and mixed-use)
  • Prepayment Penalty: None
  • Property Types: Condo, townhouse, single-family, duplex, multi-unit, mixed-use. No owner-occupied properties allowed.

Kiavi: 660 credit score

Kiavi has risen in prominence for hard money loans due to its transparency in fees, financing options for first-time investors, competitive rates, large loan amounts, and quick funding.

Their bridge loans cater to fix-and-flip investors, offering up to $1.5 million for various property types, including single-family homes, 2-4 unit properties, condos, and PUDs.

Kiavi simplifies the application process by not requiring income verification or property appraisals, expediting approval and funding. They accommodate both new and experienced investors, rewarding those with more experience through competitive pricing and dedicated account managers for faster closings.

  • Interest Rates: Starting at 9%
  • Loan Amount: $75,000 to $1.5 million
  • Loan Term: 12, 18, or 24 months
  • Repayment Method: Interest-only with balloon payment
  • LTV, LTC & ARV: 90% LTV and 75% ARV
  • Fees & Closing Costs: 1.5% to 2% of the loan amount
  • Time to Funding: 10 days
  • Minimum Credit Score: 660
  • Flipping Experience Required: No
Need help? Get matched with a fix and flip lender here.

AMZA Capital: 650 credit score

AMZA Capital offers a competitive fix-and-flip credit line of up to $50 million, making it an ideal choice for experienced investors looking to fund multiple projects simultaneously.

The credit line is available nationwide and caters to various property types, including single-family homes, condos, townhomes, and multifamily properties with fewer than 20 units.

For those seeking term loans, AMZA Capital provides fix-and-flip and buy-to-rent loans up to $2.5 million. First-time investors can access funding by working with a mentor and a licensed contractor. Loan terms extend up to 24 months with a possible 12-month extension for eligible borrowers.

  • Interest Rates: 7% to 12%
  • Loan Amount: Up to $2.5 million (term loan); Up to $50 million (line of credit)
  • Loan Term: 12 to 24 months
  • Repayment Method: Interest-only with balloon payment
  • LTV, LTC & ARV: Vary based on the transaction type
  • Loan Fees & Closing Costs: 2% to 5% plus $995 closing costs
  • Time to Funding: 14 days
  • Minimum Credit Score: 650
  • Flipping Experience Required: Preference for experienced flippers; first-time flippers require a mentor and a licensed contractor

The bottom line about fix and flip credit scores

In conclusion, selecting the right lender for your fix and flip project is crucial for first-time investors.

By comparing the top lenders and their offerings, you can secure competitive rates, terms, and requirements tailored to your needs.

Remember, a successful property flip begins with proper financing. So, research diligently, choose wisely, and embark on your investment journey with confidence.

Start your property flip with the right financing.

Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.

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