Fix and Flip Lender: Texas, Florida, California (2026)

By David Ghazaryan, NMLS 1486726, iQRATE Mortgages NMLS 1862492

Updated October 28, 2026

Short answer: A fix-and-flip lender in Texas, Florida or California funds the purchase and the rehab of an investment property for 12 to 24 months, sized on total cost and after-repair value; terms vary by lender. Texas homestead rules, Florida insurance and lien notices, and California transfer tax and reassessment change the numbers. iQRATE, licensed in all three states, shops 100+ lenders.

Fix-and-flip loans are business-purpose loans for non-owner-occupied investment property, not for a home you or your family will live in.

Key facts (Oct 2026)

• Business purpose: credit to acquire, improve or maintain a rental that is not owner-occupied is business purpose and exempt from Regulation Z (CFPB, Regulation Z 1026.3, fetched Oct 28, 2026).
• Texas homestead and liens: Article 16, Sec. 50 limits liens on a homestead and lets a lender rely on a non-homestead affidavit; Sec. 37 gives contractors a lien (Texas Constitution, Article 16, fetched Oct 28, 2026).
• Texas transfer tax: Article 8, Sec. 29 bars any transfer tax law enacted after January 1, 2016 (Texas Constitution, Article 8, fetched Oct 28, 2026).
• Texas title: TDI sets the title premium rate, every title agent charges the same premium, and the current rate chart took effect March 1, 2026 (TDI, title insurance FAQ, fetched Oct 28, 2026; TDI, 2026 title rates, fetched Oct 28, 2026).
• Texas property tax: the $140,000 school exemption applies only to a residence homestead (Texas Comptroller, exemptions, fetched Oct 28, 2026).
• Florida notice of commencement: required before an improvement unless the direct contract price is $2,500 or less (Fla. Stat. 713.13, fetched Oct 28, 2026; Fla. Stat. 713.02, fetched Oct 28, 2026), and permits must warn that failing to record it may mean paying twice (Fla. Stat. 713.135, fetched Oct 28, 2026).
• Florida closing taxes: deed stamps are 70 cents per $100 outside Miami-Dade, notes and mortgages 35 cents per $100 (Florida DOR, documentary stamp tax, fetched Oct 28, 2026), plus a 2 mill intangible tax on the mortgage (Florida DOR, nonrecurring intangible tax, fetched Oct 28, 2026).
• Florida flood: Citizens requires flood insurance on wind policies at $400,000 or more of dwelling value effective 01.01.26 and on all such policies effective 01.01.27, with condo unit-owner policies exempt (Citizens Property Insurance, flood requirement, fetched Oct 28, 2026).
• Florida condos: buildings three habitable stories or more need a milestone inspection by December 31 of the year they turn 30, then every 10 years (Fla. Stat. 553.899, fetched Oct 28, 2026).
• California licensing: arranging loans secured by real property for compensation is broker activity (Cal. Bus. and Prof. Code 10131, fetched Oct 28, 2026), and the California Financing Law licenses lenders and brokers of commercial loans (DFPI, California Financing Law, fetched Oct 28, 2026).
• California transfer tax: counties may charge 55 cents per $500 and cities half that, credited against the county tax (Cal. Rev. and Tax. Code 11911, fetched Oct 28, 2026); Los Angeles adds Measure ULA on sales over $5 million (LAHD, Measure ULA, fetched Oct 28, 2026).
• California reassessment: a change in ownership resets assessed value to market value (BOE, change in ownership, fetched Oct 28, 2026) and triggers a prorated supplemental bill (BOE, supplemental assessment, fetched Oct 28, 2026).
• California sale withholding: 3 1/3 percent of the sales price unless an exemption applies, not required at $100,000 or less (FTB Publication 1016, fetched Oct 28, 2026; FTB, 2026 Form 593 instructions, fetched Oct 28, 2026).
• Flood zones: flood insurance is required in a Special Flood Hazard Area with a government-backed mortgage, and some banks require it elsewhere (FloodSmart, National Flood Insurance Program, fetched Oct 28, 2026).

How a fix-and-flip loan works

A fix-and-flip loan is short-term financing for an investor who buys a property, renovates it and then sells it or refinances it. Instead of qualifying you on tax returns and debt-to-income, the lender sizes the loan on the deal itself.

• Loan-to-cost (LTC): the loan as a share of the purchase price plus the rehab budget.
• After-repair value (ARV): the value the lender expects once the work is done. Most programs cap the total loan at a share of ARV, so a thin margin limits the loan even when cost leverage looks high.
• Rehab draws: the renovation money is held back and released in stages after the lender confirms the work, usually by inspection.
• Term and exit: the loan is usually interest-only and due in full at the end of the term, so the plan to sell or refinance has to be real before you close.

Your credit score, your flip experience and the property's after-repair value usually decide where in a lender's range your file lands.

Typical fix-and-flip terms in Texas, Florida and California (varies by lender)

These ranges summarize the current published fix-and-flip guidelines of two large national investor lenders, reviewed Oct 28, 2026. They are not iQRATE terms, not an offer and not a commitment to lend.

• Leverage on cost: published maximums of up to 95 to 100 percent of cost for the strongest files (varies by lender).
• Value cap: about 75 to 80 percent of value, commonly measured against after-repair value (varies by lender).
• Rehab funding: up to 100 percent of the approved rehab budget, paid in draws (varies by lender).
• Term: 12 to 24 months, with interest-only payment options (varies by lender).
• Loan size: from about $75K to $100K at the low end up to $2.5M to $5MM at the top (varies by lender).
• Property types: 1-4 unit homes, with condos, planned unit developments and manufactured homes accepted at some lenders (varies by lender).
• Valuation and documents: some lenders use an in-house valuation instead of a third-party appraisal, and some do not verify income (varies by lender).
• Speed: closings in as few as 7 days on a clean file at some lenders (varies by lender).
• Fees: origination points and fees differ; some lenders defer origination fees to the exit, and some advertise no prepayment penalty (varies by lender).

Pricing varies by lender, file and market. No interest rate, APR or payment is quoted here, and you will receive the lender's written terms and any required disclosures before you commit.

Worked example: how the caps interact

Hypothetical numbers, sizing math only: a $300,000 purchase with a $60,000 rehab budget is $360,000 of total cost. At 95 percent of cost, the cost limit would be $342,000. If the after-repair value is $450,000 and the lender caps the loan at 75 percent of ARV, the value limit is $337,500. The loan is the lower of the two, so you would bring at least $22,500 of the cost yourself, plus closing costs, points and interest during the project. This is not a quote, an offer or an approval.

Fix and flip lender in Texas

Texas is one of the easier states to flip in on closing costs, but it has rules that show up only on Texas files.

• Homestead versus investment property: the Texas Constitution protects a homestead from most liens and puts strict conditions on liens for renovation work on a homestead, including a written contract, a waiting period, a three-day right to rescind and signing at a lender, attorney or title company office. A flip you will never live in is not your homestead, and a lender may ask you to sign an affidavit saying so, which the Constitution lets a lender rely on.
• No transfer tax: Texas has no deed stamps or transfer tax, which matters when a flip involves two sales in a year. You still pay title, escrow and lender costs.
• Title premiums are set by the state: TDI sets the title insurance premium rate, so every title agent charges the same premium for a policy. Escrow fees and lender costs still differ, so compare those.
• Taxes on the holding period: the $140,000 school exemption is for a residence homestead only. Budget property taxes on the full value for the months you hold the flip.
• Contractor liens: the Texas Constitution gives mechanics, artisans and material suppliers a lien on the buildings they improve, so expect the lender to ask for lien waivers with draws (varies by lender).

Local pages: Houston, Dallas, San Antonio, Austin and Texas mortgage broker. Keeping the Texas house as a rental after the rehab? See our Texas DSCR cash-out refinance after a rehab guide.

Fix and flip lender in Florida

A Florida flip turns on three things a lender will look at closely: insurance, the paperwork that protects against contractor liens, and closing taxes.

• Insurance and wind: quote insurance before you go under contract, including wind and flood. Citizens policies with wind coverage now need flood insurance at $400,000 or more of dwelling value, and on all such policies from 01.01.27. In a Special Flood Hazard Area, expect the lender to require flood coverage (varies by lender).
• Notice of commencement: on a rehab with a direct contract above $2,500, Florida requires a recorded and posted notice of commencement before work starts. The permit warning tells owners who plan to finance to talk to their lender before recording, because recording order and timing matter for the lender's lien and the draws.
• Closing taxes on both ends: deed stamps run 70 cents per $100 outside Miami-Dade, the note and mortgage carry 35 cents per $100, and the mortgage carries the 2 mill intangible tax. A flip pays these taxes at purchase, financing and resale, and the purchase contract sets who pays each deed tax.
• Condos: buildings three habitable stories or more need milestone inspections at 30 years and every 10 years after, and lenders read those reports, the association budget and any special assessments. A unit in a building with open structural repairs can be hard to finance or resell (varies by lender).

Local pages: Miami, Tampa, Orlando, Jacksonville and Florida mortgage broker. Planning to rent a Miami condo after the work? See DSCR loans for Miami condo investors.

Fix and flip lender in California

California flips carry higher prices and more state-specific costs, so the margin has to survive taxes and timing.

• Who can arrange the loan: under California law, negotiating loans secured by real property for compensation is real estate broker activity, and the California Financing Law separately licenses finance lenders and brokers of commercial loans. Ask any broker or lender which California license covers your loan and look it up before you pay a fee.
• Transfer tax: the county documentary transfer tax is 55 cents per $500 of value, cities may add their own, and the City of Los Angeles adds Measure ULA on sales over $5 million. A flip pays transfer tax on the way in and the way out, so check the city for the exact address.
• Reassessment and supplemental bills: a purchase resets the assessed value to market value, and the county sends a prorated supplemental bill. Completed new construction can trigger one too, so ask the assessor whether your rehab scope counts and budget for the bill during the hold.
• Withholding when you sell: escrow generally withholds 3 1/3 percent of the sales price for the Franchise Tax Board unless an exemption applies, such as a loss or zero gain certified on Form 593. That cash is not in your hands at closing, so plan the next deal around it and talk to a CPA.

Local pages: Los Angeles, San Diego, Sacramento, Riverside and California mortgage broker. If you plan to hold the property, read how to refinance a California hard money loan into a DSCR loan.

What lenders ask for on a fix-and-flip file

• The contract and the numbers: purchase contract, a line-item rehab budget and timeline, and your after-repair value estimate with comparable sales.
• Experience: a list of completed flips or rehabs with addresses and dates. Newer investors can still qualify, usually with less leverage (varies by lender).
• Credit and liquidity: a credit report and bank statements showing cash for the down payment, closing costs and interest during the project (varies by lender).
• Entity documents: if you close in an LLC, expect formation documents and possibly a personal guarantee (varies by lender).
• Insurance and contractor documents: a property insurance binder, flood coverage where required, the contractor agreement and, in Florida, the notice of commencement plan.
• Exit plan: resale comparable sales, or a rent estimate if you plan to refinance into a long-term rental loan.

How a broker shops a fix-and-flip deal

Lenders differ more on flips than on almost any other investor loan. One caps the loan at 75 percent of ARV, another at 80 percent; one funds 100 percent of rehab, another holds back more; one closes on an in-house valuation, another orders an appraisal that adds time. A broker's job is to match the deal to the lender whose box it fits.

1. Deal review first: we check the purchase price, rehab budget, ARV support and timeline, and tell you if the margin does not pencil before anyone pays a fee.
2. Match by state and property: we screen out lenders that do not lend in your state, on your property type or at your loan size, then compare leverage, draw process, term, fees and speed.
3. Full file, real pricing: iQRATE Mortgages is licensed in Texas, Florida and California and shops complex deals across 100+ lenders, but only after a full application and a complete document package, so lenders price a real file.
4. Plan the exit: if you might keep the property, we line up the long-term DSCR loan before you buy, so a slow resale does not leave you stuck with a maturing loan.

More on investor financing: fix-and-flip loans explained, hard money loans, investor loans and non-QM loans. For DSCR refinance markets, see Dallas, Houston and Tampa and Sacramento and the Inland Empire.

Have a flip under contract in Texas, Florida or California? Call iQRATE Mortgages at (702) 766-3744 or start an application, and we will review the deal and match it with lenders that fit.

Frequently asked questions

Who is a good fix and flip lender in Texas?

A lender that lends on Texas investment property, funds rehab in draws and sizes the loan on cost and after-repair value. Terms vary by lender. iQRATE Mortgages is licensed in Texas and shops 100+ lenders to match each flip, and plans for the non-homestead affidavit and title requirements from day one.

Who is a good fix and flip lender in Florida?

A lender that lends in Florida and underwrites real insurance quotes, the notice of commencement and condo documents. Terms vary by lender. iQRATE Mortgages is licensed in Florida and shops 100+ lenders to match each flip, from Miami to Jacksonville.

Who is a good fix and flip loan lender in California?

A properly licensed lender or broker that lends on California investment property and can handle higher loan sizes. Terms vary by lender. iQRATE Mortgages is licensed in California and shops 100+ lenders to match each flip, with the transfer tax, supplemental bill and sale withholding built into the numbers.

How much can I borrow on a fix and flip loan?

It depends on the lender, your credit and experience, and the deal. Current published national guidelines run up to 95 to 100 percent of cost for the strongest files, capped at about 75 to 80 percent of value, with up to 100 percent of rehab paid in draws. Terms vary by lender.

Can I live in a house I buy with a fix and flip loan?

No. Fix-and-flip loans are business-purpose loans for investment property. Under the CFPB's official interpretation, if you expect to occupy the property for more than 14 days in the coming year, it is not treated as non-owner-occupied. For a home you will live in, use a residential mortgage instead.

Does Texas charge a transfer tax on a flip?

No. The Texas Constitution bars laws enacted after January 1, 2016 that impose a transfer tax on a sale of real property, so a Texas flip has no deed stamps on the purchase or the resale. Title, escrow and lender costs still apply, and TDI sets the title premium rate.

What is a notice of commencement in a Florida flip?

A recorded notice an owner must file and post at the site before starting an improvement with a direct contract above $2,500. Skipping it can mean paying twice for the same work if a contractor does not pay subcontractors. Talk to your lender before recording, because it affects draws and lien priority.

Why does escrow withhold money when I sell a California flip?

California generally requires withholding of 3 1/3 percent of the sales price for the Franchise Tax Board unless the seller qualifies for an exemption, such as a loss or zero gain, on Form 593. A flip is not a principal residence, so plan for it and ask a CPA.

Business-purpose loans for non-owner-occupied investment property only; not for owner-occupied homes. Credit extended primarily for a business purpose is exempt from Regulation Z under 12 CFR 1026.3(a). Information is educational, current as of October 28, 2026, and subject to change; it is not a commitment to lend. Terms and requirements vary by lender and borrower qualification and are subject to underwriting and approval. Ranges summarize publicly published lender guidelines reviewed October 28, 2026 and are not iQRATE terms. No interest rate, APR or payment is quoted in this post. Homestead, lien, tax, title, withholding and insurance rules are summarized from public agency pages; consult a CPA or attorney about tax, entity and legal questions. iQRATE Mortgages is a mortgage broker, not a lender. iQRATE Mortgages, NMLS 1862492. David Ghazaryan, NMLS 1486726. NMLS Consumer Access. Equal Housing Opportunity. We do business in accordance with the federal Fair Housing Act and the Equal Credit Opportunity Act.