Fix-and-Flip Loans in San Francisco

How Flip Financing Works in San Francisco

A fix-and-flip loan is a short-term loan, usually under three years, secured by the property you are buying. Most flips are sold or refinanced within months, so these loan programs are built for a quick exit rather than long-term ownership. Interest is often paid monthly, and the full balance comes due when you sell or refinance.

Leverage is the first number most investors compare. Typical maximums run around 70 percent of value on many programs. Some flip programs go higher, and a few advertise up to 90 percent of the purchase or even full rehab financing. Higher leverage usually comes with a stronger track record, a clearer budget, or a lower-risk property. Your own cash in the deal still matters.

San Francisco flips come with local factors that shape the plan. Many homes are older, and Victorian and Edwardian houses in neighborhoods like the Mission, the Sunset, and Bayview can hide surprises behind the walls. Condos, TICs, and multiunit buildings each raise different questions for lenders. Permits go through the San Francisco Planning Department and the Department of Building Inspection, and review times can affect your schedule. Seismic work, soft-story requirements on certain buildings, and transfer taxes at sale should all be in your budget.

Lenders also look at your exit. A clear plan to sell, with a realistic after-repair value supported by nearby sales, helps. So does a contractor bid and a draw schedule. Credit and income documents often matter less than they do at a bank, though some lenders set a minimum credit score, and one commonly cited minimum is around 660. We review your situation and help you find lenders whose requirements fit it.