The quick read: Closing costs on a fix and flip loan are the lender's points and fees plus the third-party and government charges that land on the settlement statement: appraisal or valuation, title work and the lender's title policy, recording fees and any state mortgage taxes, insurance, and per-diem interest. Points and lender fees come from your term sheet; the rest is set by vendors, your county and your state.
This guide is about the closing table only: which line items appear, who sets each one, and how to check the math before you wire funds. For how a flip loan is structured and what it costs over the whole hold, including extension fees, see how fix and flip loans work and what they cost. For where pricing sits today, see fix and flip loan rates.
What line items show up at closing on a fix and flip loan?
A fix and flip loan closing usually shows two groups of charges: lender charges set by your term sheet, such as origination points, underwriting, processing and document fees, and third-party charges set by someone else, such as valuation, title, recording, taxes, insurance and per-diem interest. Knowing which group a line belongs to tells you who can change it.
The table below itemizes each category, who charges it, what drives the amount and when it is paid. It carries no fee figures on purpose: the amount for every lender line is whatever your term sheet or fee sheet states, and the amount for every government line is whatever your state and county set.
| Line item | Who charges it | What sets the amount | When it is paid |
|---|---|---|---|
| Origination points | Lender | A percentage of the loan, stated in your term sheet | At closing; ask whether it is netted from loan proceeds |
| Underwriting, processing, document preparation | Lender | Flat amounts on the lender's fee sheet | At closing |
| Appraisal, broker price opinion or valuation | Third-party valuation vendor, ordered by the lender | Property type, location and scope of the report | Ask whether it is due at order or at closing |
| Title search, settlement fee, lender's title policy | Title agent and title insurer | Loan amount, state premium rules and the agent's own fees | At closing |
| Recording fees and mortgage taxes | County clerk and state | State statute and page count (see the Florida example below) | At closing, collected by the title agent |
| Hazard or builder's risk insurance | Your insurer | The coverage your lender requires on a vacant or renovating property | First premium at or before closing |
| Per-diem (prepaid) interest | Lender | Funded balance, note rate and days left in the period | At closing |
| Draw and inspection fees | Lender or its inspector | Per-draw or per-inspection amounts in the loan documents | Mostly after closing, as each draw is released |
| Broker fee, if you use a brokerage | Brokerage (YieldStack, publisher of this page) | YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. | At closing |
Draw and inspection fees sit in the table because they are agreed at closing even though most are paid later; how draws are released is covered in the fix and flip loan draw schedule guide.
Why doesn't a flip loan come with a standard Closing Disclosure?
A business-purpose flip loan, or one made to an LLC, generally does not come with the five-page consumer Closing Disclosure, because federal disclosure rules exempt credit extended primarily for a business purpose and credit extended to anyone other than a natural person. Without that form, the fee sheet and settlement statement are your itemization.
For a homebuyer, the Consumer Financial Protection Bureau describes the Closing Disclosure as "a five-page form that provides final details about the mortgage loan," and says the lender must deliver it at least three business days before closing. Regulation Z's exemption in section 1026.3(a) covers "an extension of credit primarily for a business, commercial or agricultural purpose" and "an extension of credit to other than a natural person." Its official interpretation adds that credit to acquire, improve or maintain rental property that is not owner-occupied is deemed to be for business purposes; it does not address property bought to renovate and resell, so confirm with the lender that your flip loan is being made as business-purpose credit. Regulation X, section 1024.5(b), carries the same business-purpose exemption for settlement-procedure rules.
The practical consequence: no federal form forces the lender's charges into standard boxes three days ahead of time on a business-purpose flip loan. Ask the lender for a written fee sheet with the term sheet, and ask the title agent for a draft settlement statement early enough to reconcile it line by line against that fee sheet before you sign.
Which fix and flip closing costs are negotiable, and which are fixed?
Fix and flip closing costs split cleanly into negotiable and fixed lines: points and lender fees are set in the term sheet and can be negotiated before you sign it, title agent fees and insurance premiums may be shoppable if the lender allows it, and state taxes and county recording fees are fixed by statute.
Points scale with the loan amount, so the base they are charged on matters as much as the percentage. Two questions change the dollar figure more than the quoted percentage does. First, are the points charged on the full commitment, including the rehab holdback, or only on the amount funded at closing? Second, is any fee charged again at extension, or deducted from each draw? Where rates and points sit today is on the fix and flip loan rates page; this guide does not restate it.
Flat lender fees (underwriting, processing, document preparation, wire and closing fees) are easy to miss because each is small and several can stack. Ask for every one of them in writing on the fee sheet, by name and amount, before you accept a term sheet.
Title and insurance may be shoppable, depending on the lender. On consumer mortgages, the Consumer Financial Protection Bureau notes that lender's title insurance "is usually required to get a mortgage loan" and "only protects the lender against problems with the title"; it does not protect your equity. Ask the lender whether it allows you to choose the title agent and whether it will accept an owner's policy issued simultaneously with the lender's policy.
What do recording fees and mortgage taxes cost on a Florida flip?
In Florida, recording fees and mortgage taxes on a flip loan are set by state statute rather than by the lender: a documentary stamp tax of 35 cents per $100 on the recorded mortgage, a one-time intangible tax of 2 mills per dollar on the secured obligation, and per-page clerk recording charges. Other states differ.
The Florida figures below are taken from the 2025 Florida Statutes as published by the Florida Senate:
Documentary stamp tax on a recorded mortgage: 35 cents on each $100 or fraction thereof of the indebtedness, under section 201.08(1)(b). Nonrecurring intangible tax: 2 mills on each dollar of the just valuation of obligations secured by a mortgage on Florida real property, under section 199.133. Clerk recording charge: $5.00 for the first page and $4.00 for each additional page, under section 28.24(13). Public Records Modernization Trust Fund charge: $1.00 for the first page and $0.50 for each additional page, also under section 28.24(13). Additional clerk service charge: $4 per page, under section 28.24(13)(e).
One rule in section 201.08 matters directly to flip loans with a rehab holdback. If the mortgage secures future advances, the statute says the documentary stamp tax is paid at recording "on the initial debt or obligation secured, excluding future advances," and then paid again "at the time and so often as any future advance is made." Whether your rehab draws are structured as future advances is a drafting question for the lender's closing attorney and the title agent, and it changes how much tax is due on the closing day versus during the renovation.
Other states and counties set their own recording charges and taxes. Ask the title agent for your county's full recording charge and any state tax on the mortgage or note before closing.
How is per-diem interest calculated at a flip loan closing?
Per-diem interest at a flip loan closing is the daily interest from the day the loan funds to the start of the first regular payment period, calculated as the funded balance times the note rate, divided by the day-count basis in your note, times the number of days. Closing late in a month shortens it.
The Consumer Financial Protection Bureau defines prepaid interest charges as "charges due at closing for any daily interest that accrues on your loan between the date you close on your mortgage loan and the period covered by your first monthly mortgage payment." The same mechanism applies to a business-purpose flip loan, though the note, not a federal form, sets the day-count basis and the payment date.
The arithmetic scales with each percentage point of the note rate. On $240,000 funded at closing and a 360-day basis, each percentage point of note rate costs about $6.67 per day ($240,000 × 1% ÷ 360). Ten days of per-diem interest is therefore about $66.67 for every percentage point of the rate on your term sheet.
Two questions change that line more than the date does. Does interest accrue only on funds actually disbursed, or on the full commitment including the undrawn rehab holdback? And is any interest reserve being funded from loan proceeds at closing? Ask the lender to answer both on the fee sheet.
What does an illustrative closing look like on a $300K purchase with $80K of rehab?
An illustrative Florida closing on a $300,000 purchase with an $80,000 rehab budget shows how the lines behave: statutory taxes and recording can be calculated to the dollar, while points, per-diem interest and lender fees scale from your term sheet, and title, valuation and insurance require written quotes before anyone can total them.
This example is illustrative only. It assumes, for arithmetic, a note with a $320,000 face amount made up of $240,000 advanced at closing and an $80,000 rehab holdback, and a 15-page recorded mortgage. Those are not typical advance rates or document lengths; your term sheet and the title agent set the real figures.
| Line item | Basis used | Illustrative amount |
|---|---|---|
| Documentary stamp tax on the mortgage | 35 cents per $100 on $320,000 (s. 201.08) | $1,120, or $840 at recording and $280 as draws fund if the holdback is taxed as future advances |
| Intangible tax | 2 mills on $320,000 (s. 199.133) | $640 |
| Clerk recording charge, 15 pages | $5.00 + 14 × $4.00 (s. 28.24(13)) | $61 |
| Records modernization charge, 15 pages | $1.00 + 14 × $0.50 (s. 28.24(13)) | $8 |
| Additional clerk service charge, 15 pages | 15 × $4 (s. 28.24(13)(e)) | $60 |
| Origination points | Your quoted points × the base the lender charges them on | $3,200 per point if charged on the full $320,000 |
| Per-diem interest, 10 days | $240,000 × note rate ÷ 360 × 10 | About $66.67 per percentage point of note rate |
| Any other county charges, lender flat fees, title, valuation, insurance | Written fee sheet and quotes | No figure until quoted |
The example makes one point the percentages hide. A single point charged on the full commitment rather than the funded balance adds $800 on this file ($80,000 × 1%), which is why the base matters as much as the rate.
How do you get lenders competing on a fix and flip loan's closing costs?
You get lenders competing on a fix and flip loan's closing costs by sending one complete file, with purchase contract, rehab budget, scope and exit, to several lender types at once and comparing written fee sheets side by side, not just quoted rates. YieldStack is a commercial mortgage brokerage, not a lender.
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. The intake is a 5-minute submit, matched against 20,000+ loan programs. 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. Submit your fix and flip deal and compare the fee sheets before you commit.
The bottom line
Closing costs on a fix and flip loan are lender charges from your term sheet plus third-party and government charges from vendors, your county and your state. Because business-purpose loans are exempt from the consumer Closing Disclosure, get a written fee sheet with the term sheet and a draft settlement statement before closing. Negotiate points, the base they are charged on, and flat lender fees; shop title and insurance where the lender allows; and budget statutory lines like Florida's documentary stamp and intangible taxes to the dollar, including how future advances on the rehab holdback are taxed.