Step-by-Step: How to Qualify for a Fix and Flip Loan in Tennessee

If you're eager to jump into real estate investing, understanding how to qualify for a fix and flip loan in Tennessee is essential. These loans are designed for short-term property investments, where buyers purchase, renovate, and quickly resell a property for profit. Whether you're a seasoned investor or a first-time flipper, this guide will walk you through everything you need to know.

Let’s get started with the exact steps to secure funding and flip your first (or next) property.

Step 1: Understand What Fix and Flip Loans Are

A fix and flip loan is a short-term loan used to purchase and renovate a property. Unlike traditional mortgages, they focus more on the property's after-repair value (ARV) than the borrower’s long-term credit history. These loans are ideal for investors looking to quickly buy, rehab, and sell.

Discover the best financing options suited for your real estate project by working with local lenders familiar with Tennessee’s market.

Step 2: Check Your Credit and Financial Standing

While not as strict as conventional loans, most lenders still evaluate:

Credit score (typically 600+)
Income documentation
Proof of assets or liquidity

Having a decent credit history and showing you can cover unexpected costs will improve your approval odds. If you're unsure where you stand, get started with a pre-qualification check.

Step 3: Create a Strong Investment Plan

Lenders want to see your plan for the flip. Include:

Property purchase price
Renovation scope and cost
Timeline for repairs
Expected resale value (ARV)
Backup exit strategy (e.g., renting or refinancing)

The more detailed your plan, the more confident a lender will be in funding your project.

Step 4: Choose the Right Tennessee Lender

Not all lenders are created equal. You’ll want to work with a lender who:

Specializes in Tennessee fix and flip loans
Offers fast closings
Understands the local real estate market

Let’s find out today which lender best matches your goals and property type.

Step 5: Submit Your Loan Application

Once your plan is ready, and you’ve selected a lender, gather the required documents:

ID and business credentials
Project scope
Contractor estimates
Purchase agreement (if already under contract)

Submit the application, and if approved, expect funding within days—not weeks.

Step 6: Close the Deal and Begin Renovations

With funding secured, close on the property, hire your contractors, and begin renovations immediately. Keep in regular contact with your lender for draw schedules (funds released in stages as work is completed).

Final Thoughts

Knowing how to qualify for a fix and flip loan in Tennessee is a game changer for real estate investors. With the right plan, documentation, and local lending partner, you can finance your next flip with ease—and confidence.

Have questions or ready to apply? Contact us today and let Shop Rates guide you through the process step-by-step.