2026 Fix & Flip Playbook
Leverage tiers by experience, draw mechanics, ARV math, and the profit model behind every flip we fund.
2026 Credit & Leverage Matrix
Published Fix & Flip Underwriting Guidelines
| Operator Tier | Prior Exits (36 Mo) | Max Purchase % | Max Rehab % | Max Total LTC | Max ARV % | Indicative Rate |
|---|---|---|---|---|---|---|
| Institutional / Tier 1 | 5+ Completed Projects | 90% | 100% | 90% LTC | 75% ARV | 8.99% – 9.625% |
| Experienced / Tier 2 | 2 – 4 Completed Projects | 85% – 90% | 100% | 87.5% LTC | 72.5% ARV | 9.375% – 9.99% |
| Emerging / Tier 3 | 1 Completed Project | 85% | 100% | 85% LTC | 70% ARV | 9.875% – 10.50% |
| First-Time w/ GC | 0 Exits (Licensed GC) | 80% | 100% | 82.5% LTC | 70% ARV | 10.25% – 10.75% |
Underwriting Chapters & Desk Rules
The Dual Constraint: LTC vs. ARV
Every fix-and-flip facility is governed by the lesser of Maximum Loan-to-Cost (LTC) and Maximum After-Repair Value (ARV). When an operator buys at a deep discount, the 90% LTC cap governs; when the purchase is tighter, the 70%–75% ARV ceiling determines total proceeds.
Draw Schedule Architecture & 48-Hour Inspections
Slow construction draws kill contractor momentum. Citizens Interstate structures rehab budgets by verifiable trade milestones (Demo/Framing, Rough MEP, Drywall/Cabinetry, Finishes/Final). Sponsors submit timestamped Deal Room photo/video verification and receive wire disbursement within 48 hours.
The Dual-Exit BRRRR Underwrite
Before funding any flip, we run a secondary test: if the retail resale market softens by 8%, will the property qualify for a 75% LTV DSCR refinance that pays off 100% of the bridge loan? Deals that pass both the resale profit test and the DSCR takeout test get expedited credit approval.
Real Deal Study · Colleyville, TX
Full Gut & Second-Story Addition — $1,456,500 Acquisition + Rehab
85% LTC · 67.7% ARV · 11-Day Close
Funded $1.12M purchase and $593.5K renovation budget on a $2.15M ARV estate home. Five draws executed on schedule; borrower exited at $2.21M.