Mound City Lending

Fix-and-Flip Loans

Fast, flexible financing for real estate investors looking to purchase, renovate, and sell residential properties for profit. Our fix-and-flip loans provide both acquisition and renovation capital with competitive rates and quick closings.

Loan Features

Up to 90% LTC

Finance up to 90% of the total project cost, including purchase price and renovation budget. Minimize your cash investment and maximize returns.

12-Month Terms

Standard 12-month loan terms with options to extend. Perfect for typical renovation timelines with flexibility for unexpected delays.

Renovation Draws

Access renovation funds through a structured draw process. Submit requests with progress photos and receive funds within 48 hours of approval.

Loan Terms & Rates

Standard Terms
Loan Amount:$75,000 - $3,000,000
Loan-to-Cost (LTC):Up to 90%
Loan-to-Value (LTV):Up to 75% ARV
Interest Rate:9.5% - 13.5%
Term Length:12 months
Extension Options:Up to 6 months
Fees & Costs
Origination Fee:2.0% - 3.5%
Processing Fee:$500
Appraisal Fee:$400 - $600
Inspection Fee:$150 per draw
Extension Fee:1% of loan amount
Prepayment Penalty:None

Rate Factors

Your specific interest rate is determined by several factors including:

  • Your experience level and track record with similar projects
  • Property location, condition, and market dynamics
  • Loan-to-value and loan-to-cost ratios
  • Creditworthiness and financial strength

Qualification Requirements

Borrower Requirements
  • Must operate through a business entity (LLC, Corporation, Partnership)
  • Minimum credit score of 620 (higher scores receive better rates)
  • Proof of funds for down payment and reserves (typically 10-25% of purchase price)
  • Pass borrower competency assessment (75% minimum score)
  • Demonstrated real estate investment experience preferred
Property Requirements
  • Single-family residences, townhomes, or condos (1-4 units)
  • Non-owner occupied investment properties only
  • Property must be in acceptable condition (no major structural issues)
  • Clear title with no liens or encumbrances
  • Realistic after-repair value (ARV) supported by comparable sales
Project Requirements
  • Detailed renovation budget with line-item breakdown
  • Licensed and insured contractors for major work
  • Realistic project timeline (typically 3-9 months)
  • Clear exit strategy (sale or refinance)
  • Minimum 20% profit margin after all costs

Example Scenario

Typical Fix-and-Flip Deal

Property Details

Purchase Price:$200,000
Renovation Budget:$50,000
Total Project Cost:$250,000
After Repair Value (ARV):$320,000
Expected Sale Price:$315,000

Loan Structure

Loan Amount (90% LTC):$225,000
Borrower Down Payment (10%):$25,000
Interest Rate:11.0%
Loan Term:12 months
Monthly Interest Payment:$2,063

Profit Analysis (9-month project)

Sale Price:$315,000
Loan Payoff:-$225,000
Interest Paid (9 months):-$18,563
Closing Costs (6%):-$18,900
Holding Costs:-$4,500
Down Payment:-$25,000
Net Profit:$23,037
Return on Investment (ROI):92% (9 months)

Note: This is a simplified example. Actual results will vary based on property condition, market conditions, renovation costs, and timeline. Always include contingency funds for unexpected expenses.

Ready to Fund Your Next Flip?

Get pre-approved in 24 hours and close your loan in as little as 7 days. Start your application today.