Fix and Flip Loans

Bluestar Mortgage of Schaumburg, is an industry leader for Fix and Flip Loans. Give us a call at 847-230-4030 to speak with a FHA loan expert who can assist you in determining if a Fix and Flip loan is the right option for you. You can also click on the schedule a free consultation button above.

What Are Fix and Flip Loans?

Do you have plans of restoring or refurbishing a residential property and putting it out for sale in a short period of time? In that case, you can use fix and flip loans.

Fix and flip loans are short-term real estate loans intended to assist the investor in procuring and renovating a property that aims for for-profit sale, usually within 12 to 18 months. A few investors utilize traditional mortgages and credit lines to fund their investment properties, but a hard money lender is excellent for house flipping loans. This is because of the flexible and fast-closing terms you can work with.
Fix and flip loans are frequently obtained for the acquisition of residential properties during foreclosure or public sale bidding to fund the needed rehabilitation and improvement and other incidentals related to property possession.

Pros and Cons of a Fix and Flip Loans


  • Fast funding. Hard money fix and flip loans are easier to obtain since they can offer finances within a week. So, if investors are bidding on auctioned or foreclosures properties, they must have available money on hand.
  • Flexible terms. Private investors are not dependent on rigorous procedures and conditions with hard money fix and flip loans. Borrowers can usually work with a hard money lender.
  • Less risk. A hard money loan is supported merely by the property for which it was approved. You will not forfeit your home in cases of unfavorable circumstances.
  • Diversified portfolios. Fix and flip loans are an excellent way for investors to expand their selections, particularly during the period when real estate marketing is flourishing.
  • Security. In general, real estate is secure property investment. In fix and flip loans, the property is the security. Should the borrower become delinquent, the lender can own the property and can definitely collaborate with another flipper to reclaim the sale on the market.
  • Short terms. The majority of the property flips are done in 12 to 18 months. This can benefit the lenders on the immediate return of their investments.


The fix and flip loans can disadvantage a borrower or a lender when the flip takes a considerably more extended period than intended. Due to the intended short life spans, a higher interest rate accompanies hard money fix and flip loans. However, when the refurbishment takes longer than expected or if a completed property is up on the market for a long time, the borrower’s enormous interest rates can be a liability.

Six Kinds of Fix and Flip Loans

  • Hard money fix and flip loans from private investment entities.
  • Crowdfunding from dedicated websites provides a hard money loan generally with less flexibility.
  • Individual lenders who provide hard money loans from their funds.
  • Home equity loans (HEL) or home equity lines of credit (HELOC) from conventional associations provide a few choices but are less considerate and flexible.
  • Refinancing a cash-out from a conventional bank will offer a few additional resources by remortgaging your own home.
  • An acquisition line of credit is like a home equity line of credit (HELOC) but needs higher personal security. This is not usually a feasible choice for new flippers.

Connect with a Bluestar Mortgage Fix and Flip Loan Expert

If you are interested in a Fix and Flip loan, call us at: 847-230-4030 to speak with a Fix and Flip loan expert who can assist you in determining if a Fix and Flip loan is the right option for you.

We guarantee On - Time Closing

We guarantee that we will be able to close on or before your set closing date or we will waive all of our lender fees.

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