How are renovation draws managed?

Renovation funds are held in a draw account. As each phase of construction completes, a draw inspector visits the property and Luma releases the next tranche. Draws typically fund within 2–3 business days of inspection.

Do I need prior flip experience?

Experience is preferred but not required for first-time investors. If you're new to flipping, we may require a lower LTC or additional reserves.

Can I refinance into a rental loan instead of selling?

Yes. If the post-renovation numbers support a long-term hold, we can transition you into a DSCR rental loan at stabilization.

What happens if the project runs over budget?

Luma allows contingency draws for scope overruns in many cases. Discuss your contingency plan during underwriting — surprises are much easier to handle before closing than after.

Are LLC borrowers accepted?

Yes. Luma accepts single-member LLCs, multi-member LLCs, and corporations as borrowing entities. A personal guarantee from the managing member is standard.

Fix & Flip

Purchase and rehab in one loan.

Loan Range$50K–$1M

Term6–18 months

CoversPurchase + Rehab

Based OnARV

What is Fix & Flip?

Fix and flip loans fund both the purchase and the renovation of a residential property in a single loan. The loan amount is based on the After-Repair Value (ARV) of the home — not just the current purchase price. Renovation funds are held in a draw account and released in stages as work is completed and inspected. Designed for experienced flippers who need speed, leverage, and a lender who understands the business.

Key benefits

One loan covers purchase price and renovation budget
Loan sized on ARV — maximizes leverage on distressed acquisitions
Renovation draws released as work completes
Interest-only payments during rehab — minimize holding costs
Repeat borrower discounts for experienced investors

Requirements

Loan Amount

$50K–$1M

LTC

Up to 90%

ARV LTV

Up to 70%

Experience

1+ flip preferred

How it works

Submit the deal

Share the property address, purchase price, renovation scope, and your ARV estimate. Include comparable sales if available.

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Appraisal and term sheet

We order an ARV appraisal and return a term sheet within 48 hours. Loan amount, draw schedule, and rate are clearly stated.

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Close, rehab, sell

Close in days. Draw renovation funds as milestones are hit. Pay off the loan at sale or refi into a rental loan.

When to use Fix & Flip

The right fit for your situation

Residential flips

Buy distressed single-family or small multifamily homes, renovate, and sell at retail value. Structure the entire deal with one loan.

Distressed property acquisitions

Properties that won't qualify for conventional financing due to condition. Fix and flip loans are designed for these situations.

Value-add renovations

Light cosmetic renovations to mid-gut rehabs — the loan scales with your scope.

Portfolio-building exit

Complete the flip and refinance into a DSCR rental loan instead of selling — build long-term hold portfolio.

FAQ

Common questions about Fix & Flip

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