"100% financing" on a flip usually means 100% of the rehab budget, not the whole project. Here is what is covered, what you still bring, and how the draws work.
In short: LendingStreet fix and flip loans can cover up to 90% of the purchase price and up to 100% of the rehab budget. The rehab money is paid in draws after work is completed and inspected, not handed over at closing. That means a 100% rehab loan is not a no-money-down loan: you still bring the purchase down payment, closing costs and enough cash to fund work before each draw is reimbursed. Experience, credit and the after-repair value decide how close you get to the maximum.
A fix and flip loan has two parts. The first part funds the purchase, up to 90% of the price. The second part funds the renovation, up to 100% of the approved budget.
So when you see "100% fix and flip loans," read it as 100% of the construction budget. It is not 100% of the total project cost, and it does not mean you close without cash.
Searches for "no money down flip" usually hit a wall at closing. Even at maximum leverage, the investor covers at least 10% of the purchase price, plus lender fees, title, escrow and other closing costs.
There is also the timing of the draws. Rehab funds are typically released after a phase of work is completed and inspected, so you or your contractor pay for that phase first. Most investors need working cash for at least the first draw.
Finally, the total loan is usually capped by the after-repair value as well as the cost. If the ARV does not support the full amount, you bring the difference.
This example is illustrative and not a quote. An investor buys a house for $250,000 with an $80,000 rehab budget. The after-repair value is $440,000.
The loan covers 90% of the purchase ($225,000) plus 100% of the rehab ($80,000), for a total of $305,000, about 69% of ARV. At closing, the investor brings the $25,000 down payment, and sample closing costs of $10,100, about $35,100 in total.
If the first phase of work costs $20,000 and is reimbursed after inspection, the investor should plan on roughly $55,100 of available cash before the first draw comes back, plus reserves for interest and holding costs.
| Item | Amount |
|---|---|
| Purchase price | $250,000 |
| Rehab budget | $80,000 |
| Loan: 90% of purchase | $225,000 |
| Loan: 100% of rehab (in draws) | $80,000 |
| Total loan | $305,000 |
| Down payment at closing | $25,000 |
| Closing costs (sample) | $10,100 |
| Cash to close | $35,100 |
| Cash to fund first phase before reimbursement | $20,000 |
| Cash to plan on before first draw | $55,100 |
At closing, the approved rehab budget is held back. As each phase of work is finished, you request a draw. An inspector confirms the work, and the funds for that phase are released.
Clear line items make draws faster. A budget that says "kitchen: $18,000" with a scope of cabinets, counters and appliances is easier to inspect than one line labeled "interior."
The highest leverage usually goes to investors with completed flips, stronger credit and deals with a clear margin to the after-repair value. The minimum credit score is 620, and pricing and leverage improve at higher scores.
First-time flippers can qualify on some programs, often at lower leverage. That might mean a smaller share of the purchase price is financed, even if the rehab budget is still covered.
Heavy rehabs, where the budget approaches or exceeds the purchase price, get a closer look. The lender will want a detailed scope, a realistic timeline and an ARV that supports the total loan.
Those deals can still work, but the ARV cap is more likely to limit the loan, so plan for more cash in the deal.
Bring the purchase contract, a line-item rehab budget with scope of work, your ARV estimate with comparable sales, bank statements showing cash to close and reserves, entity documents and a list of past projects.
Our financing team reviews the scenario and comes back with 2–3 options, including how much of the purchase and rehab each one covers. Loans run from $150K to $5M+, and we can close in as little as 10 days.
Not on our programs. Even with 100% of the rehab financed, you bring at least 10% of the purchase price, closing costs and cash to fund work before draws are reimbursed.
No. The rehab budget is held back and released in draws after each phase of work is completed and inspected.
Some programs allow it, but first-time flippers often see lower leverage overall. Experience, credit and the deal's margin all factor in.
The approved budget, the program's loan-to-cost limits and the after-repair value. If the total loan would exceed what the ARV supports, the loan is reduced.
Some investors pair a flip loan with gap funding. Whether a second lien is allowed depends on the program, so disclose it up front.
It depends on the program. Many charge interest only on disbursed funds. Ask how interest is calculated when you compare offers.
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