Fix and Flip Loans in Sacramento, CA: Your Guide to Real Estate Investment Success
Have you ever driven past a run-down house in Sacramento and thought, “That place has potential”? You’re not alone. The dream of buying, renovating, and selling homes for profit is alive and well in California’s capital. But to make it happen, you need the right financing—this is where fix and flip loans in Sacramento, CA come in.
Whether you’re a first-time investor or a seasoned pro, understanding how these loans work can make the difference between a profitable deal and a financial headache. Let’s dive into everything you need to know!
What Are Fix and Flip Loans?
A fix and flip loan is a short-term real estate loan designed to help investors purchase distressed properties, renovate them, and sell them for a profit. Unlike traditional mortgages, these loans focus on the property’s after-repair value (ARV) rather than just the borrower’s credit score.
In Sacramento’s hot housing market, these loans allow investors to move quickly, securing properties before they hit the mainstream market. Most of these loans have a 6 to 12-month term, making them ideal for investors who plan to buy, renovate, and sell quickly.
Why Sacramento is Perfect for Fix and Flip Investments
Sacramento is one of the fastest-growing cities in California, making it a prime location for real estate investors. Here’s why:
- Rising Property Values – Home prices in Sacramento continue to increase, giving investors a strong resale market.
- High Rental Demand – If selling takes longer than expected, turning a property into a rental is a profitable backup plan.
- Older Housing Stock – Many homes in Sacramento were built before 1980, making them ideal candidates for renovation projects.
If you’re looking for fix and flip loans in Sacramento, you’re in the right place. New Way Mortgage offers fast approvals and flexible loan options to help you get started.
Top Benefits of a Fix and Flip Loan
1. Quick Funding for Faster Deals
In Sacramento’s competitive market, timing is everything. Fix and flip loans fund faster than traditional bank loans, often within 7–14 days.
2. Less Focus on Credit Score
Unlike conventional mortgages, these loans focus more on the property’s value than the borrower’s financial history. Even if your credit isn’t perfect, you may still qualify.
3. Higher Loan-to-Value (LTV) Ratios
Many lenders in Sacramento finance up to 85% of the purchase price and may even cover 100% of the renovation costs.
4. High Profit Potential
With rising home values in Sacramento, fix and flip investments can generate significant returns in a short timeframe.
How to Qualify for a Fix and Flip Loan in Sacramento
Although fix and flip loans are easier to obtain than traditional mortgages, lenders still have requirements. Here’s what you need:
✔ A solid investment plan – Lenders want to see a detailed renovation budget and timeline.
✔ A reasonable credit score – While fix and flip loans are asset-based, a credit score above 620 can improve your loan terms.
✔ A down payment – Most lenders require 10-20% down to reduce risk.
✔ A good Sacramento property – The home should be in a high-demand neighborhood to ensure a profitable resale.
The Fix and Flip Loan Process
Step 1: Find the Right Property
Choose a Sacramento home with strong resale potential. Look for homes in up-and-coming areas like Oak Park, Land Park, or Midtown.
Step 2: Get Pre-Approved
Work with New Way Mortgage to get pre-approved so you can make offers with confidence.
Step 3: Close the Loan & Start Renovations
Fix and flip loans fund quickly, so you can start renovations right away.
Step 4: Sell for a Profit
Once renovations are complete, list the property at market value and cash in on your investment.
Key Loan Terms and Conditions
- Loan Amount – Up to 85% of the purchase price and 100% of renovation costs.
- Interest Rates – Typically 8-12% in Sacramento, depending on experience and credit.
- Loan Term – Usually 6 to 12 months.
- Repayment Schedule – Often interest-only payments, with the balance due when the property sells.
Risks to Watch Out For
While fix and flip investing can be very profitable, there are risks:
- Unexpected Renovation Costs – Always have a contingency fund!
- Delays in Selling – If the market slows, holding costs can eat into profits.
- Overpaying for a Property – A bad deal can wipe out potential earnings.
Smart investors plan for these risks and work with trusted professionals to stay profitable.
Why Choose New Way Mortgage for Fix and Flip Loans in Sacramento?
At New Way Mortgage, we offer:
✔ Fast approvals & funding – Get your loan in as little as 7 days.
✔ Flexible loan terms – Tailored to Sacramento investors’ needs.
✔ No prepayment penalties – Sell early? No extra fees.
✔ Expert real estate guidance – Our team knows Sacramento’s fix and flip market.
Success Stories from Sacramento Investors
Case Study #1: First-Time Flipper in Roseville
- Property: Single-family home
- Purchase Price: $280,000
- Renovation Budget: $55,000
- After-Repair Value (ARV): $425,000
- Profit After Sale: $70,000
This investor used a fix and flip loan from New Way Mortgage to transform a dated 3-bedroom home into a modern masterpiece.
Case Study #2: Multi-Unit Flip in Downtown Sacramento
- Property: Duplex
- Purchase Price: $600,000
- Renovation Budget: $140,000
- ARV: $950,000
- Profit After Sale: $130,000
A seasoned investor converted an outdated duplex into luxury rentals, increasing its value significantly.
Frequently Asked Questions (FAQs)
1. What’s the best area in Sacramento for fix and flip investments?
Popular areas include Midtown, Oak Park, Curtis Park, and Land Park.
2. How long does it take to get funding?
With New Way Mortgage, funding is available in 7–10 days.
3. Do I need perfect credit to qualify?
No! Fix and flip loans focus on the property’s potential rather than your credit score.
4. What happens if I don’t sell in time?
You can refinance into a long-term loan or extend the loan term with lender approval.
5. How much can I borrow?
Loan amounts vary, but New Way Mortgage offers fix and flip loans up to $5 million.
Ready to Flip Your First Property in Sacramento?
If you’re serious about real estate investing in Sacramento, it’s time to explore your financing options. New Way Mortgage is here to help you secure fast, flexible funding so you can flip with confidence.
📞 Call or text us at 916-465-6639
📧 Email us at hello@newwaymortgage.com
📅 Schedule a free consultation HERE
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