A fix and flip loan is a short term, asset based loan secured by the property being renovated. Approval is based mainly on the deal itself, meaning the purchase price, the renovation plan, and the projected value of the home once repairs are complete, instead of the borrower’s personal income history.
Florida remains one of the busiest states for renovation investing, with a steady supply of older single family homes across metros like Tampa, Orlando, Jacksonville, and the Miami area. Loankea prices deals off the property and the plan, not a single statewide average.
Program Terms at a Glance
| Program Feature | Detail |
|---|---|
| Interest rate | Starting at 8.45%, typically 8.45% to 11% |
| Loan to cost | Up to 90% of purchase and renovation costs |
| Loan to ARV | Up to 75% of after repair value |
| Loan amount | $75,000 to $5,000,000 |
| Rehab budget financed | Up to 100%, with fast draw turnaround |
| Term length | 6, 9, 12, or 18 months |
| Time to close | As fast as 7 to 10 business days |
| Credit score | Generally 620 minimum |
| Prepayment penalty | None |
Loans close in an LLC, S corp, C corp, or individual name.
Who This Loan Is For
- First time investors buying their first renovation property in Florida
- Experienced flippers running several projects at once
- Licensed contractors who purchase properties directly instead of only performing the work
- Self employed borrowers whose tax returns understate their real buying power
- Out of state and international investors targeting Florida’s no income tax environment
Approval leans on the property and the project plan, which is why self employed borrowers and newer investors often qualify more easily here than through a conventional lender.
How a Fix and Flip Loan Works
- The lender reviews the purchase price, the renovation budget, and the projected after repair value.
- Funding is approved to cover the purchase and a portion of renovation costs.
- Renovation funds release in stages, after each stage passes inspection.
- The loan is repaid once the property sells or the investor refinances into longer term financing.
Documents You Need
- Signed purchase contract or current proof of ownership
- Renovation budget and scope of work
- Contractor bid or itemized cost breakdown
- Government issued identification
- Two to three months of bank statements showing reserves and down payment
- Entity formation documents if purchasing through an LLC or corporation, plus a Certificate of Authority filed with the Florida Division of Corporations if the entity was formed out of state
Insurance and Licensing Considerations
Property insurance in Florida can run well above the national average, particularly for older roofs, coastal properties, or homes in a designated flood zone. Getting a property specific insurance quote early, before finalizing a renovation budget, avoids a mid project surprise.
Contractor Licensing Rules
Florida licenses contractors through the Department of Business and Professional Regulation, and most renovation work touching electrical, plumbing, HVAC, or structural elements requires a state licensed contractor. Working with an unlicensed contractor on covered work can void warranties and create liability exposure, so verifying license status before signing a contract is a worthwhile step.
Taxes You Will Pay in Florida
Florida has no state income tax, which is one reason the state draws investors from higher tax states. On the loan itself, Florida charges documentary stamp tax on the mortgage note, generally $0.35 per $100 of the loan amount, plus an intangible tax of $0.20 per $100 secured by the mortgage.
On the resale, documentary stamp tax also applies to the deed, generally $0.70 per $100 of the sale price in most counties, though Miami-Dade uses a lower base rate with an added surtax on multi-family property. On a $430,000 resale outside Miami-Dade, that comes to roughly $3,010, usually handled at closing with responsibility negotiable in the purchase contract.
Permits and Timelines in Florida
Florida enforces a statewide building code, but review speed and a few practical factors depend on the local jurisdiction and the property itself.
- Permitting timelines. Local permitting offices vary widely in processing speed, and electrical, plumbing, or structural work will almost always require one.
- Flood zone status. Many Florida properties sit in a designated flood zone, which can affect insurance requirements and renovation decisions such as raising mechanical systems.
- Hurricane season timing. Investors renovating coastal or older properties often plan major exterior work outside peak hurricane months to avoid weather delays.
- HOA and condo review. Properties inside an association may require board approval before exterior renovation work begins.
Set ARV from closed comps instead of list prices, since pricing off stale comps can leave a flip sitting on the market longer than planned.
Cost Example
An investor purchases a property in Tampa for $310,000 and budgets $70,000 for renovations. The completed home is projected to be worth $460,000 after repairs. A lender financing 85% of the purchase price and 100% of the renovation budget provides about $263,500 for the purchase plus the full $70,000 renovation budget, roughly $333,500 in total funding, or about 72.5% loan to ARV. The investor covers the remaining $46,500 of the purchase price along with holding costs such as insurance, property taxes, and utilities during the renovation.
Actual terms depend on the property, the borrower’s experience, and the project itself, so confirm final numbers with Loankea before setting a budget.
Refinancing Into a Rental Loan
Not every project sells on the original timeline. Investors who can’t hit their target sale price often refinance into a DSCR loan instead, renting the property while waiting for better conditions. Florida DSCR loans typically close in 14 to 21 business days, and the same property that funded renovation through a fix and flip loan can season directly into a 30 year or 40 year DSCR mortgage once it is stabilized.
What We Offer
Loankea offers diverse fix and flip loan solutions crafted for property investors looking to renovate and resell across Florida. Each lending option is customized to align with an investor’s specific project, helping borrowers move quickly with flexible terms and reliable support throughout the process.
Our Best Terms and Conditions
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Try the Fix and Flip Calculator to run purchase price, rehab budget, and ARV against these terms before applying.
