The Quick Read: Usually yes, but “full” applies to the rehab budget, not the whole project: select hard money programs can fund up to 100% of the renovation budget in draws against completed work, while purchase and total-cost leverage sit lower and every file sits under a cap tied to after-repair value.
- Rehab money is held back at closing and released in draws as inspected work is finished.
- Experience sets the leverage tier: 85% of project cost with fewer than 2 completed projects, 90% at 2+, and 93% at 5+.
- Every fix-and-flip tier is capped at 75% of after-repair value, and the lower of the two limits governs.
- You still bring cash for the down payment, closing costs, and the early rehab spending before the first draw is reimbursed.
- No program funds 100% of the purchase. All figures vary by lender, property, and experience, and none is a commitment to lend.
What Does “Full Rehab Funding” Actually Mean?
Full rehab funding means the lender will advance up to 100% of your approved renovation budget. It does not mean the lender covers the purchase, and it does not mean you get the money upfront.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
Think of the loan as two buckets. The first is the purchase, financed at a percentage of project cost. The second is the rehab budget, which is held back and released in stages. The 100% label belongs only to the second bucket.
This is a common source of confusion. A flipper reads “up to 100% of rehab” and assumes the whole deal is financed. It is not. The rehab-budget figure is not a purchase LTV (loan-to-value, the loan as a share of the property’s value). Across the wholesale network of lenders Lendmire works with, no true 100% purchase program exists.
How Does Experience Change the Leverage You Get?
Experience moves your leverage tier, not the 100% rehab headline. The more completed projects you can document, the larger the share of total project cost the loan covers. Select programs in the network tier the loan this way:
| Documented completed projects | Loan-to-cost (typical) | Value cap |
|---|---|---|
| Fewer than 2 | Up to 85% of project cost | 75% of ARV |
| 2 or more | Up to 90% of project cost | 75% of ARV |
| 5 or more | Up to 93% of project cost | 75% of ARV |
Loan-to-cost means the loan as a share of what you pay for the property plus the renovation budget. ARV, or after-repair value, is what the property should be worth once the work is done. These are typical ranges that vary by lender, property, and experience.
The top tier is reserved for investors with a real track record. Expect to document it with closed sale records and a project history. First-time investors can qualify at the lower tiers, since underwriting stays asset-based: the property, the plan, and the exit. Credit still matters. A 620 minimum score is the starting point, with additional conditions below 660.
Why the 75% ARV Cap Is Usually the Real Limit
Two leverage tests run at once, and the lower one wins. One is loan-to-cost, which is where your experience tier lives. The other is the value cap, which holds the total loan to 75% of after-repair value on every fix-and-flip tier.
Here is how that plays out in percentages. Say your purchase plus rehab costs 80% of the ARV. At the 93% tier, the loan would be 74.4% of ARV, under the cap, so the tier governs. Now say your all-in cost is 82% of the ARV. Even at the top tier, 93% of cost would be just over 76% of ARV. The cap trims the loan to 75% of ARV, and you fund the difference.
That is why conservative ARV comps matter more than the headline percentage. A flipper who buys at a thin discount with a heavy rehab can hit the cap before experience ever helps. A deal with a deep discount lets the experience tier do its work.
Other structures follow their own limits. Bridge purchases without a rehab go up to 80% of purchase price. Cash-out and rate-and-term refinances go up to 65% of value. Ground-up construction reaches up to 90% of cost and 75% of completed value at 3+ completed projects. Loan sizes run up to $5,000,000, larger by exception.
How Do Rehab Draws Work?
Draws turn the held-back budget into reimbursements. At closing, the lender sets the rehab budget aside. You do the work, pay the contractor, and then ask the lender to release the money for what was completed and verified.
The cycle runs in a steady order:
1. The lender approves your scope of work and renovation budget.
2. Your contractor completes a phase and you pay for it.
3. You submit a draw request with photos, invoices, and lien waivers.
4. The lender verifies the work through an inspector, a video walk-through, or a photo review.
5. The lender releases the funds for the approved work.
Lien waivers are a common reason a draw package stalls. These are signed releases from contractors confirming they have been paid and will not file a claim on the property. The last draw typically needs final lien waivers, a final inspection, and permit closeout. Many programs also keep a 5-10% holdback on each approved draw until punch-out. Each lender’s loan agreement controls the details, so read the draw section before you sign.
Lendmire’s team can point you to the draw terms that matter most for a high-volume flipper in its piece Hard Money Rehab Draw Terms for an Experienced Flipper Scaling Volume.
Do You Still Need Cash? (Yes, Here Is Where It Goes)
Full rehab funding does not remove the need for cash. You bring money to the deal in four places:
| Cash need | What it covers |
|---|---|
| Down payment on cost | The share of purchase price not financed |
| Closing costs | Third-party and lender charges |
| Early rehab spending | Work paid before the first draw reimburses you |
| Reserves | Cushion for overruns and carrying costs |
Because rehab is reimbursement-based, you float the early work yourself. Lenders often confirm that you have reserves to start the project before they lend. The final draw returns most of that float, but it is real money tied up in the meantime, and slow inspections or missing paperwork stretch the period.
A practitioner point from daily file work: the flippers who get hurt are rarely short on the down payment. They are short on liquidity between draws, which pushes them into delaying the contractor. A contractor who is paid late is a contractor who slows down, and a slow project is a carrying-cost problem on an interest-only loan.
A Worked Example in Percentages
Take a hypothetical fix-and-flip. The investor has 5+ completed projects, so the top tier applies. The purchase plus rehab budget equals 78% of the modeled ARV.
| Step | Result |
|---|---|
| Tier limit | 93% of project cost |
| Loan as a share of ARV | About 72.5% |
| Value cap | 75% of ARV, not binding |
| Rehab budget funded | Up to 100%, in draws |
| Paid at closing | Purchase share plus costs |
| Float before first draw | Early rehab work, on you |
The loan comes in under the 75% cap, so the experience tier governs. The investor still funds roughly 7% of project cost plus closing costs. The rehab portion of the loan reaches them only as inspected work is completed. These are modeled assumptions for illustration, not market data or a quote.
Change one input and the answer shifts. If the same deal’s all-in cost rose to 82% of the modeled ARV, the 75% cap would bind instead of the tier limit, trimming the loan, and the investor’s cash share would grow. The calculator on this page gives an illustrative estimate you can edit, but it is not a quote.
What Can Shrink Your “Full” Funding?
Several things reduce what you actually receive, even with a strong track record:
- A low appraisal. If the ARV comes in below your estimate, the 75% cap shrinks the loan.
- Scope changes. Added work usually needs lender approval before it is funded, and reallocating budget lines often does too.
- Heavy or ground-up work. These projects keep more of the budget in holdback and fund less at closing.
- Holdback surprises. Some investors learn late that the rehab funds must be held back at closing. Confirm the structure in writing early.
- Property type. Hard money here covers non-owner-occupied residential of 1-4 units, with ground-up construction up to 10 units. Commercial, land, and owner-occupied properties are not offered.
- Paperwork gaps. Missing lien waivers or permit issues hold up reimbursement.
Interest-only terms of 6-18 months with no prepayment penalty are the norm on this program, so a project that runs long costs you in carry. Build a buffer into the timeline, not just the budget.
What About Government Rehab Programs?
Government rehab loans are not an alternative for investors. The FHA 203(k) program finances purchase plus renovation, but only for owner-occupants. HUD’s 203(k) brochure states the property must be a principal residence. The OCC’s fact sheet on the 203(k) program says the same about owner-occupant intent, and it describes a 10% holdback on rehab proceeds released after final inspection.
Note the parallel. Even the government program holds back the rehab money and releases it against inspected work. Draw-style funding is how renovation lending works across the board, which is why hard money feels familiar once you understand it.
What Happens After the Flip or Hold?
You exit one of two ways. You sell, or you keep the property as a rental and refinance. Hard money terms are 6-18 months, and there are no multi-year options on this program. Many investors who plan to hold refinance out into long-term DSCR financing once the property is renovated and rented.
DSCR (debt service coverage ratio) compares the property’s rent to its full monthly obligation of principal, interest, taxes, insurance, and any association dues. 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. The ratio does not equal cash flow, since repairs, vacancy, and management sit outside it. The complete DSCR loans guide walks through the mechanics.
Is This Right for Your Deal? A Checklist
Run through these before you apply:
- Can you document your completed projects, and which tier do they place you in?
- Do conservative comps support an ARV where your all-in cost sits well under the 75% cap?
- Is the scope of work detailed enough for an appraiser and a draw inspector?
- Do you have cash for the down payment, closing costs, and the early float?
- Is your contractor comfortable being paid on a reimbursement schedule?
- Does the property fit the 1-4 unit non-owner-occupied box?
- Do you have a defined exit, whether a sale or a refinance?
If you answer no to the first or second item, the deal may need a smaller loan or a lower tier regardless of your experience.
Key Terms Defined
Loan-to-cost (LTC): the loan as a share of purchase price plus the rehab budget.
After-repair value (ARV): the estimated value of the property once the renovation is complete.
Holdback: the portion of the loan set aside at closing and released later against completed work.
Draw: a single release of held-back funds after the lender verifies that work was finished.
Lien waiver: a signed document from a contractor confirming payment and waiving claims against the property.
Interest-only: a payment structure where you pay only interest during the term, with the principal due at payoff.
Frequently Asked Questions
Will a hard money lender fund all of the rehab?
Up to 100% of the approved rehab budget on select programs, released in draws. The amount depends on the lender, the property, your experience, and whether the value cap leaves room. It is reimbursement for completed work, not cash at closing.
Do I still need cash at closing?
Yes. Expect a down payment on project cost, closing costs, and reserves. You also front early rehab costs before the first draw reimburses you, so liquidity matters as much as the headline leverage.
Does experience change rehab funding?
It changes the leverage tier more than the rehab share. Moving from fewer than 2 completed projects to 5 or more lifts loan-to-cost from 85% to 93%. The 75% ARV cap applies at every tier.
Can I fund 100% of the purchase too?
No. No true 100% purchase program exists in the network. Bridge purchases without rehab go up to 80% of purchase price, and fix-and-flip purchases are leveraged by cost tier under the ARV cap.
Can I use an FHA 203(k) for a flip?
No. The 203(k) program is for owner-occupants who will live in the home. Investors flipping or renting a property use business-purpose financing like hard money.
Next Steps
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Lendmire is a mortgage broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Reach the team at 828-256-2183 or use the quote request page.
The best flippers treat the ARV cap as the budget and the experience tier as a bonus, and they size every deal to survive both.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. HUD – Section 203(k) brochure
2. OCC – FHA’s 203(k) Loan Program fact sheet
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Hard Money Project Loan Requirements for a Funded Rehab Budget · How a Hard Money Lender Counts Seasoning on a Flip · How Much Hard Money Holds Back for an Experienced Flipper’s Eviction
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.