If you're lining up a flip, fix and flip loans in Glendale come down to a handful of moving parts: what you pay to borrow, how the rehab money is released, how long the loan runs, and how you pay it back. Get those four lined up before you make an offer and the rest of the project gets easier to manage.
The timing is worth noting. HousingWire's report on the second-quarter 2026 Fix and Flip Market Index (from John Burns Research & Consulting and Kiavi) found that 59% of flippers secured new loans, the highest share in two years. The same survey also showed many flippers selling more slowly and some selling below their projected after-repair values. That makes the financing plan, including your exit, more important than it was when homes moved fast.
How a flip loan differs from a regular mortgage
A traditional mortgage is built around a borrower's income and a finished, livable home. A fix-and-flip loan is short-term financing for a property you intend to renovate and resell, and it is typically underwritten around the deal itself: the property, the planned work and your plan to exit. Lenders in this space are often called hard money lenders, and loans like these are the reason investors use them.
Paramount Loan Services is a mortgage broker, not a direct lender. That means we place your project with lenders rather than underwriting or funding the loan ourselves. For an investor, the practical benefit is that one conversation can surface more than one way to structure a deal. Our rehab and fix-and-flip loan programs are the starting point.
What a Glendale flip loan costs: the line items to ask about
We won't quote numbers in a blog post, because pricing depends on the lender, the property and you. What we can do is tell you which costs to ask about so you can compare offers fairly:
- Interest rate. Ask whether it's fixed for the term and how interest is calculated, since many short-term loans charge interest only on the amount drawn.
- Points. These are an upfront charge expressed as a percentage of the loan. Ask whether they're charged on the full loan or only the purchase portion.
- Lender and processing fees. Underwriting, document and wire fees add up, so ask for them itemized.
- Draw and inspection fees. If the lender sends someone to verify work before releasing money, find out who pays and how much per draw.
- Extension and prepayment terms. Check whether there's a minimum interest period or a charge for paying off early.
Add your own costs on top: insurance, property taxes, utilities and any holding costs while the house sits. A loan that looks cheap on one line can be expensive once all of these are counted.
The rehab budget and the draw schedule
This is the part new investors most often misunderstand. With many rehab loans, the renovation money isn't handed over at closing. It's held back and released in stages, called draws, as work is completed.
A typical flow looks like this:
- You submit a scope of work and a line-item budget before the loan closes.
- The loan funds the purchase, with the rehab portion set aside.
- You finish a phase, such as demolition, framing or kitchen, and request a draw.
- The lender verifies the work, often by inspection or photos, then releases that portion.
The practical consequence is cash flow. Contractors want deposits, and draws reimburse you after the work is done, so plan to carry some of the cost between draws. A detailed budget with a contingency line for surprises is something lenders look for, and it protects you too. Draw rules vary by lender, so ask early how often you can request them and how fast they get paid.
Timeline: how fast does it fund?
We can't promise a closing date, and anyone who does before reviewing your file is guessing. Speed depends on how complete your package is, the property's condition, title and appraisal scheduling, and the lender's own process. What helps is preparation: have the purchase contract, scope of work, budget, proof of funds for your down payment and reserves, and your experience summary ready. If you're bidding against other buyers, tell us up front so we can talk about what's realistic for your situation.
Loan terms are usually measured in months rather than years. Build your renovation schedule, your listing date and a cushion for permit delays inside that term, not up against the end of it.
Exit by sale or by refinance
Every flip loan needs a way to be repaid. There are two common ones.
Sell the property
You list the finished home, close the sale and repay the loan from proceeds. The risk is time on market and price. If the home takes longer to sell, or sells below your projection, your holding costs keep running. That's why the second-quarter survey data matters: leave room in your numbers.
Refinance and hold
If you'd rather keep the property as a rental, the exit is a longer-term loan that pays off the short-term one. That usually depends on the finished value, the property's income and your own qualifications. If you plan to pull equity from a property you already own to fund the next project, our guide to HELOC vs. cash-out refinance explains how the two options compare.
When a flip is really a ground-up or major rebuild
Some Glendale projects go beyond cosmetic work, such as additions, structural changes or tear-downs. Those may be better served by construction and renovation financing, which has its own draw structure and documentation. Telling us the full scope at the start lets us point you to the right program rather than force a flip loan onto a build.
Questions to settle before you make an offer
- What's my all-in cost, including points, fees, draw fees and holding costs?
- How are rehab funds released, and how long does a draw take?
- What happens if the project runs past the loan term?
- If the market slows, will a refinance still work as my backup exit?
Tom Tumyan, our owner and Senior Loan Officer, has been a licensed loan officer for 25+ years, with experience in commercial and residential real estate. Our office is at 611 E Glenoaks Blvd in Glendale, so local investors can sit down with us in person. If you'd like to talk through a property you're considering, you can book an appointment or call (818) 500-4009. There's no pressure, just a conversation about whether the numbers and the exit make sense.
Written by Paramount Loan Services
Licensed California mortgage broker (NMLS #236355) in Glendale, serving borrowers since 2006. We work with many lenders — from conventional, FHA, and VA to bank statement, ITIN, and hard money programs — to match each client with the loan that fits.
