The down payment is only one line on your cash budget. Closing costs, monthly interest and the first rehab draw all come out of your pocket before the sale does.
In short: On our fix and flip programs, the down payment can be as low as 10% of the purchase price, because we finance up to 90% of purchase and 100% of the rehab budget. Your total cash need is usually higher than the down payment alone. Plan for closing costs, several months of interest payments, and enough liquidity to start work before the first draw is reimbursed.
Fix and flip loans are sized on cost, not just value. The lender looks at the purchase price and the rehab budget separately, then applies a percentage to each.
On our programs, that can mean up to 90% of the purchase and 100% of the rehab. Most programs also cap the total loan at a share of the after-repair value (ARV). That cap commonly lands somewhere in the 65% to 75% range, and it varies by program and experience.
Here is an illustrative example, not a quote. An investor buys a house for $200,000 with a $60,000 rehab budget and an expected ARV of $360,000.
At 90% of purchase, the loan covers $180,000 of the price, so the down payment is $20,000. The full $60,000 rehab is financed, but it is paid out in draws as work is completed. The total loan is $240,000, which is about 67% of ARV, so it fits under a typical ARV cap.
| Item (example) | Amount | Who pays |
|---|---|---|
| Purchase price | $200,000 | Loan $180,000 / Investor $20,000 |
| Rehab budget | $60,000 | Loan, paid in draws |
| Total loan | $240,000 | About 67% of $360,000 ARV |
| Down payment | $20,000 | Investor at closing |
Closing costs are the first add-on. These usually include origination points, lender fees, title and escrow, a valuation report and builder's risk or vacant property insurance. In our example, budgeting $8,000 to $12,000 would be reasonable, but the actual figure depends on the state and program.
Carrying costs come next. Most flip loans are interest-only, and you make the payment monthly while the house is under construction and listed.
Rehab funds are usually held back and released in draws after an inspection confirms the work. That means you or your contractor pay for each phase first, then get reimbursed.
For a $60,000 rehab with four draws, you may need $15,000 or more on hand to fund the first phase. Investors who forget the float are the ones who stall in month two.
Experience is the biggest lever. Investors with a documented track record often qualify for the top of the leverage range, while first-time flippers may see a lower purchase percentage.
Buying well also helps. If the ARV supports the loan easily, the ARV cap is less likely to cut your leverage. A clean, realistic scope of work keeps the rehab fully financed instead of trimmed.
The most common mistake is spending reserves on the purchase. If you put every dollar into the down payment, a two-week permit delay can turn into missed payments.
The second is underestimating the hold. A three-month rehab often becomes a five or six month project once listing and closing time are added. Budget interest for the full period, not the best case.
Lenders want proof that you can carry the deal. Many ask for bank statements showing enough cash for the down payment, closing costs and a cushion of interest payments. Requirements vary, but a few months of payments in reserve is common.
Our programs use no income verification, so the focus is on assets and the deal itself. You can request 2–3 options from our financing team to compare how different programs size the same flip.
On our programs, the down payment can be as low as 10% of the purchase price, since we finance up to 90% of purchase. The rehab can be financed at 100%. Your exact leverage depends on experience, credit and the ARV cap.
Usually not with a single first-position loan. You still need cash for the down payment, closing costs and carrying costs. Some investors use a partner or gap funding for part of the down payment, if the lender allows it.
No. Closing costs are separate from the down payment. Budget for both, plus interest payments and the first rehab phase.
Yes, our programs can finance up to 100% of the rehab. Those funds are released in draws after work is inspected, so you need cash to start each phase.
Our fix and flip programs start at a 620 minimum credit score. Higher scores and more experience can improve leverage and pricing.
Plan for the full hold, including rehab, listing and the buyer's closing. Many investors budget six months or more even when the rehab itself is shorter.
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