Fix and flip loans require less documentation than traditional mortgages, but lenders still need enough information to evaluate the borrower, the property, and the project. Being prepared with the right documents helps streamline the approval process and avoid delays during underwriting.
Borrower Identification and Entity Documents #
Lenders need to verify who is borrowing and how the property will be held. Standard requirements include:
- Government-issued ID for all signing members
- Social Security number or ITIN
- Entity documents if borrowing through an LLC or corporation, including articles of organization, operating agreement, and certificate of good standing
If the entity is newly formed, lenders may request additional documentation. Personal guarantees are typically required regardless of entity age.
Real Estate Experience Summary #
Many lenders ask for a track record of completed projects, especially for new borrower relationships. This may include:
- List of past flips or investment properties
- Purchase and sale dates
- Addresses and project outcomes
- Profit and loss summaries if available
First-time investors may still qualify, though terms and leverage may differ.
Purchase Contract or Property Information #
For acquisitions, lenders need details about the property being financed:
- Signed purchase agreement
- Property address and legal description
- Seller information
- Expected closing date
If the property is already owned, a current title report or deed may be requested instead.
Scope of Work and Renovation Budget #
Fix and flip loans are underwritten partly on the renovation plan. Lenders typically require:
- Line-item scope of work with cost estimates
- Contractor bids or estimates
- Description of planned improvements
- Timeline for completion
A clear, realistic scope helps the lender assess feasibility and structure the draw schedule.
Appraisal or Valuation Support #
Lenders use valuations to determine LTV and LTARV. Depending on the lender, this may involve:
- A full appraisal with as-is and after-repair values
- A broker price opinion
- Comparable sales provided by the borrower
- Internal desktop review
Some lenders order valuations directly, while others accept borrower-submitted data for initial review.
Proof of Funds #
Lenders want to confirm the borrower has the capital needed to close and complete the project. This includes:
- Bank statements showing liquidity
- Verification of down payment source
- Reserves for carrying costs or contingencies
Proof of funds may be requested at application and again shortly before closing.
Insurance Requirements #
Before funding, borrowers typically need to show:
- Builder’s risk or renovation insurance policy
- Liability coverage
- Lender listed as mortgagee or loss payee
Requirements vary based on property type and project scope.
Summary #
Fix and flip loan documentation focuses on borrower identity, project details, and financial readiness. Lenders want to understand who is borrowing, what work is planned, and whether the numbers support the loan. Having these documents organized and ready helps move the process forward efficiently and signals that the borrower is prepared to execute the project.