Conventional financing is not as easy to find for house flipping as it is for owner-occupied housing or rental properties.

The first reason for this is that mortgage lenders often don’t like to lend money to purchase properties that are not in a suitable condition. Even if you do manage to secure a mortgage, you then have the problem that mortgage lenders lend money on the basis that you will hold the property for a long period of time. Because of this, even if you don’t have penalties for early repayments, they will be aware if you repay the loan after six or so months.

While this may not be an issue with the first house you flip, lenders will quickly notice any patterns if you do it a second and third time, often refusing to provide loans to individuals who do this, as well as informing other lenders.

In addition to this, it can be difficult to secure a loan due to companies giving a reduced value for poorly maintained properties, despite their potential.

The final difficulty with securing conventional financing for house flipping is that it can take a substantial amount of time to complete an application, making it a time-consuming process.