What is the best way to finance a house flip?

There's no single best option — it depends on the property and your situation. Hard money suits most first flips because it's fast and based on the deal, not your credit. Conventional loans are cheaper but slow and require a habitable home.

Can you get a conventional loan for a flip?

Sometimes, but the home must be in habitable condition and you need strong credit and income. Many flip properties are too distressed to qualify, which is why investors lean on hard or private money for the purchase and rehab.

Do you need a down payment to flip a house?

Almost always. Even hard money lenders that fund against ARV typically want 10–25% of the purchase from you, plus points and closing costs. Partnerships are the main path to flipping with little or no money down.

Financing

How to Finance Your First House Flip (5 Options Compared)

Five ways to fund a flip, from fastest to cheapest. Here's which one fits a first deal.

June 15, 2026 · 7 min read

Quick answer

Beginners typically finance a flip with one of five options: hard money, private money, a conventional loan, a HELOC, or a partnership. Each trades cost for speed and accessibility — hard money is fast and credit-lenient but expensive, while conventional loans are cheapest but slow and require a habitable property.

The five options at a glance

Option	Speed	Cost	Best for
Hard money	Days	7–15% + points	Most first flips; lends on ARV
Private money	Days–weeks	Negotiable	If you have a willing lender
Conventional loan	Weeks	Cheapest	Habitable homes, strong credit
HELOC	Weeks	Low–moderate	Tapping your own home equity
Partnership	Varies	Profit split	No money, but you bring the deal/work

Why beginners usually start with hard money

Hard money is short-term, asset-based financing. The lender cares primarily about the deal's after-repair value, not your income or credit, and can fund in days — a real edge when competing for deals. It often finances much of the rehab too. The tradeoffs are higher rates (7–15% plus points) and short terms (often 12 months or less), so a tight timeline is essential.

Match the financing to the deal

Distressed, needs-work property + speed required → hard money or private money.
Habitable property, you qualify, time isn't tight → conventional (cheapest).
You have home equity and a low-cost option → HELOC.
You have the deal and skills but not the cash → partnership.

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Frequently asked questions

What is the best way to finance a house flip?: There's no single best option — it depends on the property and your situation. Hard money suits most first flips because it's fast and based on the deal, not your credit. Conventional loans are cheaper but slow and require a habitable home.
Can you get a conventional loan for a flip?: Sometimes, but the home must be in habitable condition and you need strong credit and income. Many flip properties are too distressed to qualify, which is why investors lean on hard or private money for the purchase and rehab.
Do you need a down payment to flip a house?: Almost always. Even hard money lenders that fund against ARV typically want 10–25% of the purchase from you, plus points and closing costs. Partnerships are the main path to flipping with little or no money down.