What is a good interest rate for a fix and flip loan in 2026?

Rates generally run 9% to 13% depending on experience, leverage, credit, and exit clarity. Experienced borrowers requesting lower leverage with a clear exit strategy typically land toward the lower end. First-time flippers or deals requesting maximum leverage against the ARV ceiling typically price higher.

Does draw speed actually affect my total cost?

Yes. Slow draw funding stalls your renovation schedule, which extends your holding period and adds interest, taxes, insurance, and utility costs. A lender funding draws within days protects your timeline in a way that a lower headline rate cannot offset if draws are slow.

What happens if my flip does not sell before the loan matures?

You can typically request an extension for a fee. Extension costs vary by lender, so factor a possible extension into your budget from the start rather than assuming a strict exit timeline will always hold.

Fix and Flip Loan Rates in 2026: What Actually Moves Your Rate (And When You Need a Commercial Loan Instead)

Your fix and flip loan rate is not one number pulled from a rate sheet. It is the output of several variables working together: your experience, how much leverage you are requesting, your credit profile, whether you choose the option for no upfront origination points, and how clear your exit is. Two investors buying the same property in the same market can land several basis points apart because one of those inputs moved.

Most online guides to fix and flip loan rates stop at "expect 9% to 13%." While that range may be accurate for estimation, it is helpful to know what directly impacts rate when structuring a deal. This guide breaks down what may move you within that range, why draw speed and balance sheet flexibility function as real cost of capital levers even when the headline rate is identical, and how to tell whether your deal actually belongs in a Fix and Flip loan or in a larger commercial product like a Multifamily Bridge Loan.

What Actually Moves Your Rate

Rate sheets look simple from the outside. In practice, a lender is pricing risk across several factors at once, and each one can move your number independently of the others.

Experience Level

A borrower on their tenth flip and a borrower on their first are not the same credit risk, even with identical financials. Lenders track completed deals, timelines, and exit history. A documented track record of flips completed on schedule and sold at or above projected ARV moves you toward the lower end of the range. First-time flippers typically price higher and may see more conservative leverage until a track record exists.

Leverage: LTC and the ARV Ceiling

Dominion Financial lends up to 100% of loan to cost, covering both purchase and rehab. That number is always checked against a second limit: the loan cannot exceed 70% of After Repair Value. Whichever number is lower controls the actual loan amount. Requesting leverage that pushes right up against the ARV ceiling is a higher risk position for a lender than a deal with real equity cushion, and pricing reflects that.

Credit Profile

Fix and flip loans are a combination of asset-based and borrower-based qualification. A stronger credit score signals lower default risk and typically earns better pricing. That said, fix and flip underwriting is centered primarily on the deal itself, the borrower's experience, and liquidity, with credit factored in alongside those rather than income documentation carrying the weight it would on a conventional mortgage.

Points vs Rate Structure

Every fix and flip loan carries an origination fee expressed in points. One point equals 1% of the loan amount, charged at closing. On a $250,000 loan, one point costs $2,500. Some borrowers choose the “no upfront origination points” option to preserve cash at closing, typically paired with a modestly higher rate. Others pay the standard origination points at closing withthe standard rate. The right structure depends entirely on how long you expect to hold the property, since points are a fixed cost regardless of timeline while rate accrues daily.

Exit Clarity

A defined, realistic exit, whether that is a retail sale or a refinance into a DSCR rental loan, reduces a lender's risk. Vague or overly optimistic exit assumptions push pricing and terms in the wrong direction.

Draw Speed Is a Hidden Cost of Capital

Two lenders can quote the identical rate and points on paper and still produce very different outcomes for your project. Draw speed is the variable that rarely shows up in rate comparisons but directly affects your total carrying cost.

Every day a draw sits unfunded is a day your crew is idle, your holding costs accrue, and your project timeline stretches. Dominion Financial funds draws within days of approval. Many lenders take weeks or longer to process the same request. On a project with five or six draw cycles, that gap alone can add weeks or months to a timeline, and every extra month is additional interest, taxes, insurance, and utilities coming out of your margin. A slower lender with a marginally better headline rate can easily end up costing more once draw delays are factored in.

Balance Sheet Lending Gives Room to Flex

Most fix and flip lenders originate a loan and sell it to a third-party investor almost immediately. That arrangement locks the lender into the buyer's guidelines, which limits how much flexibility exists once your deal falls outside a standard box.

Dominion Financial is a balance sheet lender, meaning certain loans are funded with our own capital and held on our own books rather than sold off. When we are lending our own money, we are not boxed in by a third party's overlays. That gives us room to make judgment calls on deals with unconventional scopes, tight timelines, or borrower profiles that do not fit a rigid template, and to structure terms around the actual deal in front of us rather than a checklist. Not every loan qualifies for balance sheet treatment, but it is a real tool available on deals that need it.

Why Margins Are Tighter and Financing Terms Matter More

The typical flipped home nationally generated $65,981 in gross profit in 2025, down from $77,000 the year before, for a 25.5% return on investment, the lowest level recorded since 2008, according to ATTOM's 2025 year end U.S. Home Flipping Report. With margins this compressed, the difference between a lender charging 2 points versus 3 points, or funding draws in days versus weeks, has a direct and measurable effect on whether a project actually pencils out. This is exactly why experience, leverage, and structure matter more in the current market than the headline rate alone.

How Dominion Financial Prices Fix and Flip Loans

Dominion Financial underwrites experience, leverage, credit, and exit together rather than pricing off a single input. Every quote factors in your track record, the requested loan-to-cost against the 70% ARV ceiling, and your points versus rate preference, with no appraisal required and closings available in as little as 48 hours. Draws are funded within days, so your project timeline stays intact, and because we are a balance sheet lender, deals that do not fit a standard template still have a path to approval. Get your quote to see where your specific deal lands.

Takeaways

Your fix and flip loan rate is built from experience, leverage against the ARV ceiling, credit, your points versus rate structure, and exit clarity, and the true cost of capital also depends on draw speed and extension terms that a headline rate does not capture. If your project is 1 to 4 units, Dominion Financial's Fix and Flip program delivers up to 100% financing, no appraisal, 48-hour closings, and draws funded within days. Get your quote and see exactly where your deal prices.