This can vary from lender to lender and it can vary from what type of property you are going for.
Basically, an ARV (After Repair Value) Loan allows you to borrow a certain percentage of what a property should be worth after all the repairs are complete. For instance, you borrow $240K for a distressed property on the market for $175K which, after all the repairs are done, should be worth $300K.
These type of loans are usually difficult to get because you need a high FICO score of around the min 600s. Yet you could also tie it into an interest only loan if you're going to fix up and resell the property quickly.
Hope that helps. Good luck!
Terrence Charest, e-Pro
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090