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Comparison

FLYP vs. construction loan — which funds your renovation better?

Short answer: Construction loans (FHA 203k, Fannie Mae HomeStyle, traditional bank renovation loans) require credit qualification, appraisal, and a structured draw schedule with inspector sign-off at each stage. FLYP requires none of those. If you can qualify, a construction loan can finance large additions or major structural work. For pre-sale cosmetic and value-add renovations, FLYP is faster, simpler, and avoids permanent debt.
Choose FLYP when…
  • Pre-sale renovation focused on cosmetic and value-add improvements.
  • You want to avoid the appraisal/qualification gauntlet.
  • You want the renovation finished in 4-8 weeks, not 4-8 months.
  • Total scope under $150K.
Choose Construction loan when…
  • Major structural addition, ADU build, or new construction.
  • Total scope over $150K.
  • You're staying in the home 7+ years and want amortized financing.
  • You can wait for the inspection-driven draw schedule.

Side-by-side comparison

FLYP
Construction loan
Upfront cost to homeowner
$0
Closing costs $3K-$8K + appraisal $600+
Monthly payment during renovation
None
Interest-only on drawn amount
Credit qualification
Not required
Required — typically 640+ with 203k, 700+ traditional
Appraisal required
Optional, internal only
Yes — "as-completed" appraisal
Draw schedule and inspector sign-off
Not applicable — single closing settlement
Yes — typically 4-6 inspections
Time to fund
1-3 weeks
8-16 weeks
Time to complete renovation
4-8 weeks
12-26 weeks
Maximum scope size
Up to ~$150K typical
Up to home value (often $500K+)
Best for additions / ADUs
Limited
Strong fit
Best for pre-sale renovation
Strong fit
Overkill — terms outlast the hold
The bottom line

Construction loans are heavy machinery — right for major builds, wrong for a 4-8 week pre-sale refresh. FLYP is the targeted tool for pay-at-closing renovations focused on resale value. Use construction loans when scope and timeline justify the underwriting overhead.

Frequently asked questions

Can I use a 203k or HomeStyle loan for a pre-sale renovation?

Technically yes, but the timing rarely works. Construction loans take 8-16 weeks to fund and require an inspection-driven draw schedule that typically extends total project time to 12-26 weeks. By the time the renovation is done and the home is listed, you've paid months of interest. FLYP's 1-3 week funding and 4-8 week completion timeline is built specifically for the pre-sale window.

What's the biggest renovation FLYP will fund?

FLYP-managed renovations typically range from $25K to $150K total scope. Above that, projects usually involve structural changes, additions, or ADU builds where a construction loan is the better instrument.

Does FLYP work for an ADU build?

FLYP can manage an ADU build through its parent company (Green State Restoration), but the financing structure is different from a pay-at-closing remodel. Talk to us about your specific ADU plans — see /renovate for context.

Related comparisons

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