Fix and Flip Loans in Boston, MA

A fix and flip loan is short-term, asset-based financing used by real estate investors to purchase a property, fund its renovation, and sell it for a profit. The loan amount is based primarily on the property's After Repair Value rather than the borrower's personal income. Terms typically range from 6 to 12 months with interest-only payments, and the loan is repaid in full when the property sells.

While traditional mortgages require strict credit scores, fix and flip lenders focus primarily on the property's value and the project's profitability. Most lenders prefer a minimum score of 600 to 620 to confirm basic financial responsibility, but a low credit score is not automatically disqualifying at Norfolk Capital. When the property, the renovation plan, and the exit strategy are strong, the deal can move forward.

Norfolk Capital requires equity as low as 10% of the acquisition cost. The lender funds the remaining purchase price and holds 100% of the renovation budget in a secure escrow account, releasing it in draws as work is completed. You will also need to cover closing costs and origination fees at settlement.

Fix and flip loans are short-term by design, with base terms generally starting at 12 months. The loan is structured to be repaid when the property sells or, for investors executing a fix-to-hold strategy, when it is refinanced into permanent financing such as a DSCR loan. There are no prepayment penalties, so you can exit the loan the day the renovation is complete.

Yes — flipping houses is entirely legal in Massachusetts. Investors must comply with local zoning laws, obtain the required building permits for all renovation work, and follow the state's lead-paint disclosure and remediation regulations for properties built before 1978. Working with a lender that understands Massachusetts permitting requirements helps avoid costly delays.

The 70% rule is a widely used investor formula that says you should pay no more than 70% of a property's After Repair Value, minus the estimated cost of repairs. This builds a margin for holding costs, lender fees, unexpected expenses, and profit. For example, if a Boston property has an ARV of $600,000 and needs $80,000 in renovations, the 70% rule suggests a maximum purchase price of $340,000. Norfolk Capital evaluates each deal individually, but the 70% framework is a solid starting point for back-of-envelope analysis.

The full renovation budget is held in escrow at closing. As the investor completes each phase of the rehab — demolition, framing, rough mechanicals, finishes — a draw request is submitted to Norfolk Capital. A team member inspects the property, typically within 48 hours, to verify the work is complete and up to standard. Once approved, the corresponding funds are released. This milestone-based system protects both the borrower and the lender while keeping the project moving.

Yes — this is commonly known as the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). You use a short-term fix and flip loan to acquire and renovate the property, then place a tenant and refinance into a long-term rental loan. Norfolk Capital offers both the initial rehab financing and DSCR loans for the permanent take-out, giving you a single lender relationship across both phases of the strategy.