Loan comparison
Fix & Flip vs Ground-Up Construction Loans
Both are short-term, draw-based loans — the difference is whether you're improving a building that already exists or putting up a new one from bare ground.
Side-by-side
General comparison only — terms vary by deal. Call for current terms.
- Purpose
Fix & Flip LoanBuy an existing property and renovate it.
Construction LoanBuild a new property on land you own or are buying.
- Loan Term
Fix & Flip LoanShort-term — sized to a renovation timeline.
Construction LoanShort-term, but typically longer than a rehab to cover the full build.
- Payment Structure
Fix & Flip LoanCommonly interest-only, repaid at sale or refinance.
Construction LoanCommonly interest-only on funds drawn, repaid at sale or refinance.
- Rehab Funding
Fix & Flip LoanRenovation funds released in draws as work is completed.
Construction LoanConstruction funds released in draws as build milestones are hit.
- Property Condition
Fix & Flip LoanAn existing structure — distressed, dated, or needing work.
Construction LoanVacant land, a teardown, or a lot ready for new construction.
- How You Qualify
Fix & Flip LoanPurchase price, scope of work, after-repair value, experience, and exit plan.
Construction LoanPlans, permits, budget, builder experience, projected completed value, and exit plan.
- Speed to Close
Fix & Flip LoanBuilt for speed to win time-sensitive purchases.
Construction LoanPaced by plans and permits being ready — preparation matters most.
- Exit Strategy
Fix & Flip LoanSell the finished property or refinance into a long-term loan.
Construction LoanSell the completed build or refinance into a long-term loan such as DSCR.
Choose a Fix & Flip Loan if…
- You found an existing property priced below its potential
- The work is cosmetic to heavy rehab, not a full rebuild
- You want the shortest path from purchase to sale or rent
- Speed to close is what wins you the deal
Choose a Construction Loan if…
- You own or are buying land, a lot, or a teardown
- You have plans and permits in place — or close to it
- You're working with an experienced, licensed general contractor
- New construction makes more sense than renovating what's there
Frequently asked questions
Which one is riskier?
Ground-up projects usually carry more moving parts — permits, longer timelines, more trades — which is why lenders look closely at plans, budget, and builder experience. A rehab starts with a structure already standing.
What if my rehab turns into a near-rebuild?
If the scope involves major structural work or additions, it can start to look more like construction. Call us early and we'll help you figure out which structure fits the project.
Do both loans use draws?
Yes. In both cases funds for the work are released in stages as completed work is verified.
Can I refinance into a rental loan afterward?
Yes. Whether you renovated or built, you can refinance a finished, rented property into a long-term DSCR loan.
Does Moon Walk Fundings offer both?
Yes — Fix & Flip for renovations and Ground-Up Construction for new builds, plus DSCR if you decide to hold. Call Janson directly to talk through your project.
Related comparisons
Not sure which loan fits? Let's talk it through.
Talk to Janson Wade directly. No call centers, no runaround — just a real conversation about your deal and current terms.