Fix and flip loans are short-term, asset-based loans designed for real estate investors to buy and renovate properties for resale. They typically cover up to 90% of the purchase price and 100% of renovation costs, closing in as little as 5 to 14 days. 

How the Loans Work
These loans are underwritten based on the property's After-Repair Value (ARV) rather than your personal income. 
• Loan-to-Cost (LTC): Lenders often finance up to 85% to 95% of your total project costs (purchase + rehab).
• Loan-to-Value (LTV): Total loan amounts are usually capped at 70% to 75% of the projected ARV.
• Draw Schedule: Renovation funds are not handed out as a lump sum. Instead, the lender releases money in "draws" as you complete specific milestones. 

Key Terms and Costs
• Loan Terms: Short-term durations typically ranging from 6 to 18 months.
• Interest Rates: Rates currently range from 7.99% to 14%, depending on your experience level and local market. Payments are usually interest-only.
• Points: Lenders typically charge 1 to 3 "points" (1% to 3% of the loan amount) as an upfront origination fee.