Fix and flip loans provide funding for real estate investors to purchase and renovate properties.

Depending on a borrower's experience, the LTV (loan to value) of a fix & flip loan will usually range between 75% to 90% of a property acquisition cost; and in addition, lend 100% of the renovation costs.

Interest rates will be several percentage points higher than a conventional mortgage.

Closing costs also are usually higher than a conventional mortgage.

Mortgage terms on a fix & flip loan typically range between 9 to 18 months; with the expectation that the borrower will either re-sell for profit; or refinance and thus keep the property for rental income.