The quick read: There is no public index for fix and flip loan rates, because this is private, deal-specific credit: each lender sets its own rate and points at closing, priced off its own cost of capital and the leverage, experience and speed the deal calls for. What is public, and worth checking before any quote is taken at face value, is the short-term rate backdrop: the bank prime rate read 7.00 percent on FRED as of September 21, 2026, up a quarter point after the Federal Reserve's September 16 meeting. This page tracks that benchmark monthly and lays out exactly what a flip-loan quote should itemize - rate, points, draw and inspection fees, extension fees and any minimum-interest clause - and where each cost typically hides. Submit your flip deal as a guest and compare full cost stacks, not just headline rates
As of: September 21, 2026 (FRED bank prime rate, read September 24, 2026) Benchmark: Bank Prime Loan Rate (FRED DPRIME) at 7.00 percent as of September 21, 2026 Policy backdrop: FOMC raised the federal funds target range by 1/4 percentage point on September 16, 2026 Private rate index: none published - every fix and flip quote is lender-specific and has to be read off that lender's own rate sheet What this page is: a stable monthly rate-and-fee page, refreshed in place each month
Why is there no published fix and flip loan rate?
A fix and flip loan rate is never published as an index because there is no market-wide product behind it, only a private lender's own quote, set deal by deal on the property, the borrower's track record, the leverage requested and how fast the file has to close.
That is why the useful question is never "what's the rate," but "what does this lender's rate sheet say today, and what else is riding inside that number." Fix and flip debt is underwritten against the collateral and the plan, not against a securitization pool with a public coupon: NerdWallet's fix and flip loan guide, for example, says lenders may size these loans by loan-to-value, loan-to-cost or after-repair value, and puts typical repayment terms at six to 24 months. The number is whatever that lender decided your file was worth that week. Two lenders can look at the identical file on the identical morning and quote rates that are meaningfully apart, for reasons that have nothing to do with any published rate.
For how each layer of that quote is actually built - the points, the interest, the draw and inspection fees, and the extension fee - see how fix and flip loans work and what they cost, which walks a full worked deal from loan sizing to net profit at sale. This page focuses on the dated rate environment and the fee lines that guide does not cover.
What did the Fed's September 16 decision do to lender funding costs?
The Federal Reserve raised its federal funds target range by a quarter point on September 16, 2026, and FRED shows the bank prime rate moving from 6.75 percent on September 16 to 7.00 percent on September 17. What it did to any one flip lender's cost of funds is a question to put to that lender.
The FOMC's statement said the Committee "decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent." FRED's Bank Prime Loan Rate series (DPRIME) shows 6.75 percent on September 15 and 16, then 7.00 percent on September 17, 18 and 21 - the last date read for this page. FRED describes prime as one of several base rates banks use to price short-term business loans, and this time it reset the day after the decision.
Ask each lender how it funds its loans - warehouse lines, private capital or its own balance sheet - whether its pricing moves when short-term rates do, and whether your rate is fixed for the term or floats over a benchmark such as prime.
Practical takeaway: ask every lender for the date their current rate sheet was issued. A quote dated before September 17, 2026 was priced in the prior rate environment.
What should a fix and flip rate quote actually itemize?
A complete fix and flip rate quote itemizes five things separately - the rate, the origination points, the draw and inspection fee schedule, the extension terms, and any minimum-interest requirement - because a lender that is expensive on one line can be competitive on another, and a single headline number hides that. Ask for each line in writing.
Table: What a fix and flip rate quote should show, September 2026
| Cost line | How it is quoted | Where it hides |
|---|---|---|
| Rate | An annual percentage set at close; confirm whether it is fixed for the term or floats | A lower headline rate paired with more points or a shorter interest-only period |
| Origination points | A percentage of the loan amount, charged at closing | Quoted against the full commitment even when renovation funds draw slowly, inflating the effective rate on a short hold |
| Draw and inspection fees | A flat fee per draw, plus an inspection charge per site visit | A budget sliced into more draws than necessary, multiplying a small per-draw fee across the whole project |
| Extension fee | Points on the balance, charged at or near maturity | Whether the fee applies to the original commitment or the current outstanding balance, and whether the rate also steps up |
| Minimum-interest clause | A floor on total interest owed, regardless of how early the loan is repaid | Selling or refinancing earlier than the lender's minimum period, so you pay for time you did not borrow the money |
The rate is the line borrowers ask about first, but not the only one that moves the total. On a nine-to-twelve-month hold, points, draw fees and the minimum-interest floor can move the true cost more than a percentage point or two on the coupon ever will.
What is a minimum-interest clause, and why does it matter?
A minimum-interest clause guarantees the lender a floor on total interest income regardless of how quickly the loan is repaid, so a borrower who sells or refinances early can still owe interest through the end of the minimum period, paid out of the payoff or sale proceeds. It can surprise a flipper who closes faster than planned.
The logic is the mirror image of an extension fee. An extension fee protects the lender against a project that runs long; a minimum-interest clause protects the lender against a project that ends early, before the loan has earned enough interest to justify the cost of originating it. Both exist because a fix and flip loan is short-term, labor-intensive credit for the lender to underwrite and fund, and the lender wants a floor on what it earns either way.
The clause is negotiated, not standardized, so its length and the way it is calculated differ from lender to lender - this page does not print a typical duration, because no allowlisted source verifies one for September 2026, and a number quoted from memory is worse than none at all. What is consistent is the question to ask: is there a minimum-interest period, how many months or days is it, is it disclosed in the term sheet rather than buried in closing documents, and does it apply if you sell versus if you refinance. A flip that closes ahead of schedule should be a win, not a line item you did not see coming.
How do points trade against the quoted rate?
Points and the quoted rate move opposite each other because points are cash paid upfront to buy the rate down, so a lower headline rate paired with more points is not automatically the cheaper loan on a short hold - it depends entirely on how long the loan is actually outstanding.
Because points are a percentage of the loan amount paid once, at closing, their cost is fixed in dollars but their cost as an annualized rate falls the longer the loan is outstanding and rises the shorter it is. A quote with two points looks worse on paper than a quote with zero points and a slightly higher rate, but on a fast six-month flip the zero-point loan can easily win, and on a slower twelve-month hold the math can flip. The full arithmetic of that tradeoff, including a worked example with draw and holdback mechanics, is in how fix and flip loans work and what they cost. Ask every lender for the rate at more than one point structure before comparing headline numbers.
A September 2026 quote, worked through (illustrative only)
The cleanest way to see how these lines interact is one hypothetical quote worked end to end, and every figure below is a stated illustrative assumption chosen to show the arithmetic, not a quote from any lender. Treat the structure, not the numbers, as the takeaway.
Illustrative-only example, not a quote:
Loan amount: $250,000 Illustrative fixed rate: 10.75 percent Origination points: 2.0 points ($5,000) at closing Draw schedule: three draws, $350 draw fee plus $150 inspection fee each ($1,500 total) Minimum-interest period stated on the term sheet: illustrative only, confirm in writing with the lender - assume four months for this example Extension terms: 1.0 point if the loan is not repaid by month nine
If the project sells in month five, the borrower has cleared the illustrative four-month minimum, so interest is owed only through the actual payoff date, plus the $5,000 in points and $1,500 in draw and inspection fees regardless of timing. If the project instead needs a three-month extension past month nine, the extension line adds another 1.0 point, or $2,500, on top of three additional months of interest. Neither the minimum-interest period nor the extension fee moved the headline 10.75 percent rate at all - both sit entirely outside it, which is exactly why a rate comparison alone misses them.
How do you get lenders competing for this fix and flip loan?
You get lenders competing for a fix and flip loan by putting one complete file - purchase price, renovation budget, after-repair value and track record - in front of several lenders at once, and asking each for the same five quote lines: rate, points, draw fees, extension terms and any minimum-interest period. A single-lender process only tells you one number.
That is the work YieldStack does. YieldStack is a commercial mortgage brokerage, not a lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
For the loan types and structures behind this product, see YieldStack's fix and flip financing overview. For the live benchmark this page reads each month, the YieldStack rates dashboard tracks prime and other public series daily.
The bottom line
Fix and flip loan rates in September 2026 are not a single published number - each lender sets its own rate and points, and the only dated public figure worth tracking is the short-term benchmark: bank prime at 7.00 percent as of September 21, 2026, up a quarter point after the Federal Reserve's September 16 meeting. A rate sheet dated before September 17 was priced before that move, so ask whether it has been reissued since.
A complete quote itemizes five lines - rate, points, draw and inspection fees, extension terms and any minimum-interest clause - and on a short hold the rate alone does not show the true cost. Ask for the minimum-interest period and the extension terms in writing, ask for the rate at more than one point structure, and compare every lender on the same five lines rather than on the headline number alone. This page is refreshed monthly at the same URL with the current FRED reading.