Fix and Flip Loan Costs
The cost of a fix and flip loan is never one number. Interest, points or fees, closing charges and the length of the term all combine into the real cost of the money, and the advance against the property decides how much cash stays in your pocket during the project.
This page uses the illustrative sample terms shown across this site to demonstrate the math. They are placeholders for layout, not current terms, a quote or a promise that any lender offers them.
The illustrative sample terms
These are the same placeholder figures used on every page of this site. Replace them mentally with the written terms from any actual offer you review.
These are sample figures for layout only, not available terms or a quote. Actual eligibility, pricing, funding amount and timing vary by lender and property. Replace these figures before launch.
How the after-repair value shapes the loan
The after-repair value, or ARV, is the estimated resale price of the finished home. When an advance is expressed as a share of ARV, the estimate behind that number does real work: the higher and better supported the ARV, the more a lender may advance against the project.
Support the estimate with comparable sales that match the finished home, not the property as it sits today. A lender will test the same comparisons when it reviews your file.
An illustrative worked example
Suppose a purchase at $250,000 with a $60,000 renovation budget and a supported resale estimate of $400,000. Under the illustrative advance of up to 75% of the after-repair value, the example loan could reach $300,000.
The purchase plus renovation total $310,000, so the example buyer would bring the remaining $10,000 plus closing costs, fees, interest and reserves. At an illustrative 11% annual rate over a nine month hold, interest on $300,000 would run about $24,750. Every figure here is made up to show the math and is not a quote.
The four priority city pages on this site carry similar worked examples with local settings, like the ones for Atlanta, Mableton, Chamblee and Milton.
The other costs in the file
Interest is only one line. Points or origination fees may be charged at closing. The closing attorney and title charges apply in Georgia like any purchase. Insurance during the project, and in some cases draw or inspection fees, can add to the total.
Ask for the complete list in writing before you commit. Two offers with the same rate can produce very different totals once the fees are counted.
How to compare offers
Total the interest over the months you actually expect to hold the property, add every fee, and add the closing costs on the file. Compare that full number across offers rather than comparing rates alone.
The funding process behind these figures is covered in how fix and flip funding works in Georgia, and the fix and flip vs hard money guide explains how this kind of loan relates to other products.
Common questions about costs
Are the rates on this page real offers?
No. Every figure on this page is an illustrative placeholder that shows how an offer might be presented. Actual rates, advances and fees come from a lender’s written terms on your specific file.
What does after-repair value mean?
After-repair value, or ARV, is the estimated resale price of the home once the planned renovation is complete. Lenders use it to size the advance, so the comparable sales behind the estimate matter.
Are there costs beyond the interest rate?
Yes. Points or origination fees, closing attorney and title charges, insurance, and possible draw or inspection fees can all be part of a file. Ask for the complete fee list before you commit to any offer.
How is interest usually paid on a fix and flip loan?
Many fix and flip loans are structured with monthly interest payments and the principal due when the home sells or the term ends. The lender’s offer controls the actual structure, so read it closely.
Do all lenders charge the same?
No. Pricing varies by lender, by property and by borrower. Comparing full written offers, not headline rates, is the only reliable way to know what a project will cost.
Have a property in mind?
Tell us what you plan to buy and improve. We will review the details and discuss possible funding connections without promising a loan.
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