How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

Fix and Flip · 4 min read

How Much Down Payment Do You Need for a Fix and Flip?

The short answer

Most fix and flip lenders fund up to 90% of purchase, so plan on roughly 10% down plus closing costs and your share of rehab. Here's how the cash adds up.

On a fix and flip, plan on roughly 10% of the purchase price as a down payment, plus closing costs. Lenders fund up to 90% of purchase and up to 100% of the rehab, so the purchase down payment is usually your biggest cash item.

What you actually bring to closing

Down payment — about 10% of the purchase price.
Closing costs — title, valuation, legal, and lender fees (points).
Rehab carry — you typically fund each rehab stage and get reimbursed by draw, so you float the work short-term.
Reserves — a cushion for overruns and carrying costs.

How to reduce your cash in the deal

Buy further below market so the equity offsets cash, or bring a partner or private money for the down payment. Experienced flippers can also earn higher leverage, which lowers the down payment.

Frequently asked

How much down do you need for a fix and flip loan?

Usually around 10% of the purchase price, since lenders fund up to 90% of purchase. You also cover closing costs and float the rehab between draws.

Do fix and flip lenders fund the rehab?

Yes, up to 100% of the rehab budget, reimbursed in draws as work is completed and inspected. You typically fund each stage first and get reimbursed.

Can you reduce the down payment on a flip?

Yes, with a strong below-market purchase, a partner or private money, or higher leverage earned through experience.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Fix and Flip Ground-Up Construction

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