Fix & Flip and Investment-Property Renovation Loans
The property needs work. The financing needs a plan.
Buying to renovate and sell? Improving a property to keep as a rental? CapitalSource Mortgage helps you explore purchase-and-rehab financing around the property, the work and your exit strategy. No tax returns required for eligible business-purpose programs.
Close in as few as 5–7 days for eligible transactions.
For eligible investment-property projects. Closing in 5–7 days is subject to a complete file, underwriting, valuation, title, insurance and satisfaction of lender requirements. Timing varies and is not guaranteed. An initial review is not a loan approval or funding commitment.
Program Highlights
| Up to 90% | Up to 100% | Up to 75% ARV | 5–7 days |
|---|---|---|---|
| Of the eligible purchase price | Of the approved renovation budget | Total loan relative to lender-accepted after-repair value | Closing available for eligible transactions |
All limits apply together. Borrower contribution, closing costs and reserves may be required. Renovation funds are released through the approved draw process, not necessarily in full at closing. Not all borrowers or properties qualify.
01 / Investment Strategies
Two strategies. Financing built around your plan.
Fix & Flip — Buy. Improve. Sell.
Explore acquisition and renovation financing for a property you intend to improve and resell. Review the scope of work, contractor budget, completion schedule and resale plan together with carrying costs and the loan repayment timeline.
Renovate & Hold — Improve. Rent. Refinance.
Explore short-term renovation financing for a property you intend to keep as a rental. Review the proposed long-term loan separately. An eligible DSCR refinance may evaluate rental income against the required loan payment and housing expenses, but it requires its own underwriting and approval. Renovation financing does not automatically convert into a permanent mortgage.
02 / Financing Structure
Know what funds at closing—and what comes later.
Investment-property rehab financing is short-term financing that brings together the acquisition, approved improvements, expected after-repair value and repayment plan. It is not based on projected value alone.
Purchase funding
Review the acquisition advance available at closing, your required contribution and costs paid separately.
Renovation draws
Approved rehab funds are held back and released in stages called draws. The lender sets the documentation, progress checks and conditions for each release. Some structures reimburse completed work, so plan for cash needed between draws.
After-repair value
After-repair value, or ARV, estimates the property’s value after the planned improvements are complete. The lender must accept that value, and the overall loan limit applies alongside the purchase and renovation limits. A higher projected value does not automatically cover every project cost.
Total cash and loan terms
Account for closing costs, interest, applicable draw or inspection fees, reserves and a contingency for delays or additional work. Review maturity, extension and prepayment terms before accepting a loan.
03 / The Process
A clear path from property to project.
01 — Share the property and the plan
Send the property location, purchase price or current value, renovation budget and plan to sell or hold. Include who will complete the work, your intended occupancy and any contract deadline.
02 — Understand the financing before you commit
Review the proposed acquisition advance, renovation draws, required cash and repayment strategy together. We will identify the documentation and conditions needed to move the financing review forward.
03 — Move toward closing
Complete the required underwriting, property, title and insurance steps. Eligible transactions may close in as few as 5–7 days, subject to a complete file and satisfaction of lender requirements. Timing varies and is not guaranteed.
04 — Renovate and execute the exit plan
Follow the agreed draw process and track the budget, progress and loan timeline. Revisit the repayment strategy if the project changes.
Frequently asked questions
Do I need tax returns?+
No tax returns are required for eligible business-purpose programs. Other borrower and project documentation is still required, depending on the lender and program.
Can a first-time investor apply?+
Bring us the scenario. Experience requirements and financing terms depend on the program, property and proposed project.
Can my real estate agent or contractor help with the review?+
Yes. Investor-focused agents and general contractors can help provide acquisition details, the scope of work, budget and schedule so everyone starts with the same project information.
Can I use this financing for a home I plan to live in?+
Tell us at the start. An owner-occupied renovation needs a separate financing and eligibility review. The business-purpose investor terms on this page should not be assumed to apply. If you already own the home, explore HELOC and cash-out refinance options through Access Your Equity.
Bring the property. Bring the plan.
Share the location, purchase price or current value, estimated renovation budget and your plan to sell, rent or occupy the property. CapitalSource Mortgage will help identify the next steps for a financing review.
Submit my project for review↗Speak with CapitalSource Mortgage ↗Have a contract deadline? Include it. Do not upload tax returns, bank statements or other sensitive financial documents through a general inquiry form.