Flipping a house requires quick capital, and getting the right funding can make or break your project. Fortunately, there are several financing options available—even if you don’t have a large amount of cash upfront.

Here’s a step-by-step guide on how to get funding for a house flip project, including the best types of loans, where to find them, and how to qualify.

🧭 Step-by-Step: How to Get Funding for a House Flip

🔹 1. Create a Detailed Flip Plan

Lenders and partners will expect to see:

• ARV (After Repair Value)

• Purchase price & rehab budget

• Timeline & contractor estimates

• Exit strategy (sell, refinance, or rent)

📊 Use a deal analyzer or flip calculator to run your numbers.

🔹 2. Determine How Much Capital You Need

Estimate these:

You’ll need either 100% financing (rare) or at least 10–30% down plus reserves.

🔹 3. Choose the Right Type of Funding

Here are the most common financing options for flippers:

💸 Top Funding Options for House Flipping

✅ 1. Hard Money Loan (Most Popular)

• Short-term, interest-only loan based on the property’s ARV

• Fast funding (5–10 days), minimal credit checks

• Often covers up to 90% of purchase and 100% of rehab

Pros:

• Fast and flexible

• Doesn’t rely on personal income

• Perfect for distressed properties

Cons:

• High interest rates (8%–15%)

• Short term (6–12 months)

• Closing costs + points (2–5%)

✅ 2. Private Money Lenders

• Borrow from individuals (friends, family, or local investors)

• Flexible terms based on relationship and deal strength

• Often used for gap funding or full flip capital

Pros:

• Customizable deals

• Less red tape

• No credit score required

Cons:

• Must build trust

• Harder to find reliable lenders

• Can damage relationships if deal fails

✅ 3. Business Lines of Credit or Personal Loans

• Good for experienced flippers or if you’re registered as an LLC

• Use funds as working capital for small flips or cosmetic rehabs

Pros:

• Flexible use of funds

• Can reuse for future deals

• Faster than mortgage loans

Cons:

• Lower limits than hard money loans

• May require good credit and established business

✅ 4. HELOC or Cash-Out Refinance

• Tap into equity from your current home or rental property

• Great for self-funding your flips with better terms

Pros:

• Low interest rates

• No lender approval on the flip property

• Reusable capital source

Cons:

• Risk tied to your own property

• Slow closing time

• Lower flexibility than hard money

✅ 5. Partnerships or Joint Ventures

• Find a capital partner who brings funding while you bring the deal and execution

• Share profits based on terms (e.g., 50/50 or preferred return)

Pros:

• No personal credit or risk

• Fund larger or multiple deals

• Learn and grow faster

Cons:

• Profit sharing

• Must build trust and legal agreements

• Potential disagreements

✅ 6. Flip-Friendly Lenders or Fix-and-Flip Loans

Some lenders specialize in house flips:

• Kiavi

• Lima One Capital

• New Silver

• Fund That Flip

• Groundfloor (for small-scale investors)

📌 They often bundle purchase + rehab in one loan (ARV-based).

💡 Pro Tips to Boost Your Chances

📝 Summary: Best Flip Financing by Situation