Yes, you can get a fix and flip loan for your first project. Without a track record, the deal itself, your credit and your team carry more weight. First-time investors usually get a bit less leverage than seasoned flippers, but the rehab can still be financed and released in draws as the work gets done.
What we look at instead of experience
Experience is one input, not a gate. When you haven't completed a flip yet, these are what make a first deal fundable:
- The numbers. The purchase price, a realistic rehab budget and a supported after-repair value (ARV). Loans are capped at 75% of ARV, so a deal with a healthy spread is easier to approve.
- Your credit. HomeShield Flex has FICO options from 620. Higher scores open up more leverage and better pricing.
- A clear scope of work. A line-item budget shows you know what the project needs.
- Your contractor. An experienced, licensed general contractor helps offset a short track record.
- Cash to close and reserves. Enough to cover your share at closing and a cushion while the work gets done.
We don't ask for tax returns or W-2s. Fix and flip loans qualify on the deal, not your personal income.
How leverage changes as you gain experience
Lenders price risk, and a first project carries more of it. With HomeShield Flex, first-time investors typically start around 85–90% of the total project cost, with the rehab financed in draws. As you complete projects, the terms improve: more leverage, lower rates and access to programs like HomeShield Preferred and HomeShield Max.
Prior projects in the last three years usually count, including flips, rentals you renovated and ground-up builds. If you've partnered on deals before, tell us. That experience may count too.
Have a first deal in mind?
Send us the address, the price and your rehab budget. We'll tell you how it fits.
Tips to make your first flip easier to fund
- Buy at the right number. A conservative ARV and a real discount on the purchase give everyone room for surprises.
- Pad the budget. Add a contingency for the things you find once the walls are open.
- Get bids in writing. Contractor bids back up your budget.
- Plan the exit. Know whether you'll sell or refinance into a rental. If you might hold it, see hard money vs. DSCR loans.
- Understand draws. Rehab funds are released as work is completed. Here's how draws work.
Frequently asked questions
What credit score do I need for a first fix and flip loan?
HomeShield Flex has FICO options from 620, with the best terms at higher scores. Scores under 620 are reviewed case by case.
Can I finance the rehab on my first flip?
Yes. The rehab budget can be financed and is released in draws as the work is completed, so you don't have to fund the renovation yourself up front.
Do I need to form an LLC first?
Most investors close in an LLC, and we recommend it. Fix and flip loans are business-purpose loans for investment property, not a home you'll live in.