Investor Guide
Fix and Flip Loans in Florida: The Jacksonville Investor's Guide
Fix and flip loans are the engine behind most successful Jacksonville flips. They cover up to 90% of the purchase price and 100% of the rehab budget, close in 7–14 days, and are underwritten on the property's After-Repair Value (ARV) — not your W-2 income. Here's how they work, what they cost, and how to structure a profitable flip in Northeast Florida.
How Fix and Flip Loans Work
A fix and flip loan is a short-term (6–18 month) interest-only loan secured by the subject property. The lender funds a portion of the purchase at closing and holds the rehab budget in escrow, releasing draws as work is completed and inspected. You pay interest only during the project and pay off the full balance when you resell.
Typical Leverage in Florida
- Loan-to-Cost (LTC): Up to 90% of purchase price.
- Rehab: Up to 100% of budgeted scope.
- ARV cap: 70–75% of After-Repair Value (the binding constraint).
- First-time flippers: Often capped at 80–85% LTC and 65–70% ARV.
Rates, Points & Term
Most Florida fix and flip programs price between 9.99%–12.5% interest-onlywith 1.5–3 points of origination. Terms are typically 12 months with one or two paid extensions available. Experienced flippers (5+ completed projects) consistently land on the lower end of the rate range.
Underwriting on ARV
ARV is the appraised value of the property after the renovation is complete, based on comparable sold properties in the same Jacksonville neighborhood. The lender will order an appraisal (or a BPO + scope review) and back into your maximum loan: ARV × 70–75% sets the total dollars they'll lend, then the split between purchase and rehab is structured inside that ceiling.
Rehab Draws & Inspections
Rehab funds are released in 3–6 draws as work is completed. Each draw is triggered by a third-party inspection (or progress photos for smaller draws). Plan your contractor payments around the draw schedule — running out of working capital between draws is the #1 reason new flippers stall projects.
Example Deal: $250K Jacksonville Flip
- Purchase price: $180,000
- Rehab budget: $45,000
- ARV: $325,000
- Loan: 90% of purchase ($162,000) + 100% of rehab ($45,000) = $207,000
- ARV check: $207,000 ÷ $325,000 = 63.7% — well under the 70% cap ✅
- Cash to close: ~$30,000 (down payment + closing costs)
Why Northeast Florida Works for Flips
Duval, Clay, St. Johns, and Nassau counties combine an active resale market with a deep inventory of older, value-add housing stock. Riverside, Murray Hill, Springfield, San Marco, and Arlington consistently produce strong cosmetic-flip margins, while St. Augustine and Ponte Vedra support higher-priced, longer-timeline renovations.
Fix and Flip Loan FAQs
What is a fix and flip loan?+
A short-term, asset-based loan (typically 6–18 months) that funds both the purchase price and the rehab budget of a distressed property. The loan is underwritten on the After-Repair Value (ARV) and paid off when you resell the renovated property.
How much can I borrow for a fix and flip in Florida?+
Most Florida lenders fund up to 90% of the purchase price plus 100% of rehab, capped at 70–75% of the ARV. Experienced flippers with a strong track record can often push leverage higher.
What are typical fix and flip rates in Jacksonville?+
Expect 9.99%–12.5% interest-only with 1.5–3 points of origination. Rates depend on credit, experience (number of completed flips), leverage, and the deal's profit margin.
How fast can I close a fix and flip loan?+
Experienced Jacksonville fix and flip lenders close in 7–14 days. The fastest closings have an LLC ready, clean title, scope of work, and contractor bids in place on day one.
Do I need flipping experience to qualify?+
First-time flippers can qualify but usually face lower leverage (80–85% LTC, 65–70% ARV) and slightly higher rates. After 3–5 completed flips you'll unlock the best pricing.
How are rehab funds released?+
Rehab budgets are held in escrow and released in draws as work is completed and inspected. Most Florida lenders allow 3–6 draws over the project; some offer reimbursement-style draws within 24–48 hours.
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