Updated October 26, 2026 · 7 minute read
Typical Rates and Points Right Now
On a standard fix and flip or bridge loan, most experienced investors see interest rates between 8.5% and 11%, interest only, with 1.5 to 2 points at closing. New construction loans price in a similar range, usually with 12 to 24 month terms. Loans that fund 100% of the purchase and rehab cost more because the lender carries all of the risk: expect a rate in the low to mid teens and around 4 points.
DSCR rental loans are long-term 30-year loans and price closer to conventional mortgages. In October 2026 most DSCR rates are in the 7s, with 1 to 2 points, and they move with the bond market. These are ranges, not quotes. Your terms depend on the property, your experience, your credit and how much cash you bring.
What a Point Is and Why It Matters
A point is 1% of the loan amount, paid at closing. On a $300,000 loan, 2 points is $6,000. Because most flips and bridge loans are paid off in 4 to 9 months, points are often a bigger share of your cost than the interest. A loan at 10% with 1.5 points can be cheaper than one at 9.5% with 3 points if you sell quickly.
Run the math on your expected hold. Add the points, the interest you will actually pay (on the funds you will actually have drawn) and the fees, then divide by the profit on the deal. That is the number to compare.
Fees Beyond Rate and Points
Every lender has some third-party and processing costs. Ask for all of them in writing before you commit so there are no surprises at closing:
- Appraisal or valuation (often $500 to $900 for a single-family home)
- Processing or underwriting fee
- Draw inspection fees on rehab and construction loans
- Title insurance, closing fees and recording, paid to the title company
- Builder's risk or hazard insurance for the property
What Moves Your Rate and Leverage
Experience is the biggest lever. Investors with several completed flips or builds in the last 36 months get more leverage and better pricing, because the lender has proof the plan will be executed. First-time investors still get funded, usually with a little less leverage and a strong contractor on the job.
The deal matters next. A purchase well below after repair value, a realistic rehab budget and good comparable sales all reduce risk. Credit, liquidity and the property type round it out: rural and luxury properties are fundable as long as comparable sales support the value.
Interest Only on Funds Drawn
On rehab and construction loans, ask how interest is charged. With non-Dutch interest, you only pay interest on the money you have actually drawn, so the rehab holdback costs nothing until you use it. With Dutch interest, you pay on the full loan from day one. On a $150,000 rehab budget, that difference can be several thousand dollars over a 6 month project.
Have a Deal in Mind?
Send the numbers and we will come back with terms. Our fix and flip loans application takes about 5 minutes.