FLYP vs. HELOC, which is right for your renovation?
Short answer: If you're selling within 12 months, FLYP wins almost every time: $0 upfront, no monthly payment, no credit pull, and it's repaid only from the sale proceeds. If you're staying long-term and can qualify, a HELOC is usually cheaper because you pay interest only on what you draw and rates are tied to prime.
Choose FLYP when…
- You're planning to sell within 12 months.
- You can't qualify for a HELOC (DTI, credit, frozen AVM, self-employed).
- You don't want a monthly payment during the renovation.
- You want the renovation managed end-to-end, not coordinated yourself.
Choose HELOC when…
- You're staying in the home 5+ more years.
- You have strong credit (700+), low DTI, and steady W-2 income.
- You want to do the renovation yourself or pick your own contractor.
- You only need partial draws on a long-running project.
Side-by-side comparison
| Attribute | FLYP | HELOC |
|---|---|---|
| Upfront cost to homeowner | $0 | $0 to draw, closing costs $0–$500 |
| Monthly payment | None | Interest-only or P+I on drawn balance |
| Credit qualification | Not required | Required, usually 680+, DTI < 50% |
| Time to fund | 1–3 weeks | 4–8 weeks |
| Renovation managed for you | Yes, FLYP coordinates everything | No, homeowner manages |
| Lien on home | No traditional lien | Second lien on title |
| Repayment trigger | Only when home sells | Monthly, regardless of sale |
| If home doesn't sell | No monthly payment; interest at 6 months, balance due at 10 | Still owe full balance, with payments due monthly throughout |
| Total cost on a $60K renovation | Renovation cost only, paid at closing | Renovation cost + interest over draw period |
| Right for staying long-term | No, only for sellers | Yes |
The bottom line
HELOCs are great products for staying-and-renovating homeowners. They are bad products for sellers, because you take on debt, monthly payments, and qualification overhead to fund a renovation whose entire purpose is to be reimbursed at closing 4–6 months later. FLYP exists for the seller use case specifically.
Frequently asked questions
Is FLYP cheaper than a HELOC for a pre-sale renovation?
For a pre-sale renovation, almost always yes. A HELOC charges interest from the day you draw, plus origination costs and the time you spend qualifying. FLYP charges a single fixed renovation fee at closing. On a 4-6 month hold, FLYP's all-in cost is typically lower than a HELOC's.
Do I need a HELOC and FLYP together?
No. FLYP funds the renovation in full, you don't need a HELOC alongside it. Some homeowners do use a HELOC plus FLYP renovation management together (see /renovate) when they want to renovate and stay rather than renovate and sell.
Will using FLYP affect my ability to get a HELOC later?
No. FLYP's renovation services agreement is not reported to credit bureaus and does not appear as debt on a future HELOC application.
Can I switch from a HELOC to FLYP if I decide to sell?
Yes. If you've started a renovation with a HELOC and decide to sell, FLYP can take over the renovation management and the HELOC payoff is settled in escrow at closing alongside the FLYP fee.
See if FLYP is the right fit for your home
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