Fix and Flip Loan Alabama

Last updated: March 31, 2025

Alabama real estate investors are thriving in today’s market—and fast, affordable financing is key to maximizing your opportunities. OfferMarket’s Fix and Flip loan program empowers you to move quickly on great deals across Birmingham, Montgomery, Huntsville, Mobile, and the rest of the Yellowhammer State.

Whether you’re flipping single-family homes or using the BRRRR method to build your rental portfolio, our program offers flexible funding for short-term renovation projects with competitive rates and streamlined approvals.

Why Choose a Fix and Flip Loan in Alabama?

Alabama offers real estate investors a rare combination of affordability, cash flow potential, and appreciation. With strong demand for renovated homes, both flippers and rental property investors are capitalizing on:

• Low acquisition costs in metro areas and tertiary markets
• High ROI on cosmetic and light-to-moderate rehabs
• Population growth in Huntsville and Baldwin County
• Strong demand from first-time buyers and renters

In short: Alabama is a fix and flip friendly state—and OfferMarket is here to fund your next deal.

What Is a Fix and Flip Loan?

A Fix and Flip loan is short-term financing used to acquire and renovate a residential investment property. You repay the loan either by selling the property after the rehab or refinancing it into a long-term rental loan.

Key features:

• Fast closings: as little as 5–7 days
• Up to 90% of purchase + 100% of rehab costs covered
• No prepayment penalties
• Flexible exit strategies: flip or refinance into a DSCR loan
• Loan terms: 12 to 24 months

Who Uses Fix and Flip Loans in Alabama?

• House flippers looking for quick turnarounds
• Rental property investors using the BRRRR method
• Real estate agents building investment portfolios
• General contractors scaling their renovation businesses

Many investors in Alabama opt for our Fix and Rent bundle: a two-loan strategy that starts with a fix and flip loan and transitions into a long-term DSCR loan upon refinance.

Loan Program Highlights

Our Fix and Flip loan program is designed to serve investors at every level—from first-timers to seasoned pros.

Basic Eligibility Criteria:

• Minimum credit score: 680
• Property type: 1–4 unit residential, non-owner occupied
• Entity type: LLC or Corporation
• Loan amounts: $25,000 to $2,000,000
• Experience: Not required

Financing Terms

• Up to 90% Loan-to-Cost (LTC)
• Up to 75% Loan-to-ARV (LTARV)
• 100% of rehab budget funded (via draw requests)
• Interest-only payments
• No points charged at loan exit
• 12- to 24-month loan terms
• Interest accrual based on loan amount:
  • Under $100K: Full boat
  • $100K or more: As disbursed

Project Scope Eligibility

We evaluate the renovation scope of your project to help manage risk and support successful project completion.

Rehab Classifications:

• Light: <25% of purchase price
• Moderate: 25–49.99%
• Heavy: 50–99.99%
• Extensive: 100%+ (e.g., additions or major structural changes)

Experience Tier System:

We use a 5-tier system based on your past rehab projects. More experience = better leverage and project scope eligibility.

Fix and Flip Loans for Rural Alabama Properties

Many investors are drawn to rural parts of Alabama for their low purchase prices and strong demand for quality rental housing. Whether you’re renovating a farmhouse in Cullman County or flipping a single-family home in Wilcox or Pike County, we offer funding options tailored for rural investments.

Important considerations for rural properties:

• Rural designation may limit initial advance to 65%
• Minimum 3 completed projects required for rural eligibility
• Maximum lot size: 5 acres
• In-house valuations are not available on rural properties
• Exit strategy must be clearly supported by comps

Before submitting a rural loan request, check the property’s rural designation via CFPB and USDA databases. Rural deals require conservative leverage and a clear path to either sale or refinance.

Why Alabama Investors Choose OfferMarket

Here’s what sets our fix and flip financing apart for Alabama investors:

🏡 Local knowledge: We fund deals throughout Alabama, from Birmingham to Tuscaloosa to Dothan
⚡ Speed: Close in days, not weeks
💰 Low costs: Transparent rates, no junk fees
📈 Risk management: Our underwriting focuses on dual-exit strategies and ROI thresholds
🤝 Partnership mindset: We’re not just a lender—we’re your growth advisor

Example Deals In Alabama

Birmingham

• Purchase Price: $90,000
• Rehab Budget: $25,000
• ARV: $150,000
• Initial Advance: $80,000
• Construction Holdback: $25,000
• LTARV: 70%

Huntsville

• Purchase Price: $120,000
• Rehab Budget: $20,000
• ARV: $200,000
• Initial Advance: $108,000
• Construction Holdback: $20,000
• LTARV: 64%

Montgomery

• Purchase Price: $75,000
• Rehab Budget: $22,000
• ARV: $130,000
• Initial Advance: $63,750
• Construction holdback: $22,000
• LTARV: 66%

How the Loan Process Works

1. Apply online in minutes
2. Get an instant quote with terms and rates
3. Submit required docs (contract, SOW, entity docs, etc.)
4. Valuation ordered (appraisal or in-house)
5. Close with funds wired to title
6. Draw rehab funds as project progresses

Ready to Get Started?

Thousands of real estate investors trust OfferMarket for fast, reliable capital. Whether you're flipping a historic home in Birmingham or stabilizing a duplex in Huntsville, we’re ready to help you grow.

👉 Get an instant quote now