The Quick Read: No, there is no single minimum down payment on a flip, because each lender sets its own leverage caps by program, by deal, and by how many projects the borrower has finished. Across the wholesale network Lendmire places files with, the structure is consistent even when the numbers are not: a loan-to-cost limit and an after-repair-value limit both apply, and the lower one controls.
- Leverage is tiered by completed projects: 85% of project cost with fewer than 2, 90% at 2+, and 93% at 5+.
- Every tier is capped at 75% of after-repair value, so a thin deal can force a bigger check.
- Up to 100% of the rehab budget funds in draws against finished work.
- Cash at closing is more than the down payment: points, fees, insurance, and reserves sit on top.
- No program funds 100% of the purchase. The figures vary by lender, property, and experience, and nothing here is a commitment to lend.
Most first-time flippers ask the question as if there were a rate card somewhere. There isn’t. There is a set of tests, and your deal has to pass all of them.
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.
Why There Is No Single Minimum
Hard money lenders are private or non-bank lenders, and each funds its loans from a different source. A hard money loan is short-term and secured by the property itself. Because the collateral is the whole story, each lender decides how much of the project it will cover before it feels exposed.
That appetite changes with the lender’s funding and its history with borrowers like you. A lender that holds loans on its own books may want more cash from you. A larger one with institutional money may accept thinner equity from a proven operator. High-leverage loans carry more lender risk and cost more, which is why the top tiers go to people with a record.
The logic is plain. The lender’s collateral is the property as it stands today, and the loan also funds the rehab. If the project stalls, the lender holds a half-finished house. Your cash down is the cushion that keeps the lender from taking that loss.
What “Down Payment” Actually Means
Here is the trap in comparing quotes: lenders measure leverage against different things. One quotes a percentage of purchase price. Another quotes a percentage of total project cost. A third leads with a percentage of the finished value. Those are three different denominators, and a headline number means nothing until you know which one it is.
| Measure | Based on | What it tells you |
|---|---|---|
| Loan-to-value (LTV) | Property value | Lender exposure today |
| Loan-to-cost (LTC) | Purchase plus rehab | Share of your total spend financed |
| Loan-to-ARV | Finished value | Hard ceiling on total debt |
Loan-to-cost works the same way, except the base is what the project costs, not what it is worth.
Flip loans lean on cost and ARV. That is why you should never compare a purchase-price quote with a cost-based quote as if they were the same thing.
The Network Structure on a Flip
Here is how the programs we place files with are built. Leverage is measured as loan-to-cost and tiered by documented completed projects:
| Experience | Leverage | Cap |
|---|---|---|
| Fewer than 2 projects | 85% of project cost | 75% of ARV |
| 2+ projects | 90% of project cost | 75% of ARV |
| 5+ projects | 93% of project cost | 75% of ARV |
Two details matter. First, “project cost” means purchase plus rehab, and cost-based figures should always be read that way. Second, up to 100% of the rehab budget funds in draws as completed work is verified. That is a rehab-budget figure, not a purchase LTV.
A bridge purchase with no rehab is sized differently, at up to 80% of purchase price. Cash-out and rate-and-term refinances run up to 65% of value. Ground-up construction reaches up to 90% of cost and 75% of completed value at 3+ completed projects. All of this varies by lender, property, and experience.
The Two Tests and Why the Lower One Wins
Every flip file runs two tests. The loan-to-cost test sizes the loan against purchase plus rehab. The loan-to-ARV test sizes it against the finished value. Whichever result is smaller sets the loan.
Run the numbers on a deal described only in percentages. Say a lender prices a flip at 90% of project cost, but the all-in cost is already 80% of the finished value. A 90% cost loan would be 72% of ARV, which clears the 75% cap. Now picture a thinner deal where all-in cost is 90% of ARV. Ninety percent of that cost works out to 81% of ARV, so the 75% cap controls, and you cover the difference at the table.
That is the reason experienced operators care more about the spread than about the headline tier. A big margin between cost and finished value lets the cost test control. A slim margin hands control to the ARV cap, and the check you write gets larger.
“100% Financing” Is Not What It Sounds Like
The phrase is easy to misread. Nav explains that “100% financing” means the lender covers the full acquisition-plus-rehab cost, not 100% of value, and only when the deal fits inside the lender’s ARV cap. Nav also notes that a thin margin between all-in cost and ARV often won’t qualify for full financing.
The brokerage’s own read matches that. There is no true 100% purchase program in the network. The top tier is reserved for experienced investors, and even there, the ARV cap sits above everything. If a quote sounds like zero money down, ask which denominator it uses and what cap applies. Usually the answer is a cost-based figure that still leaves you a real check.
Some borrowers reduce the cash they bring by other means, such as a partner or a seller carrying part of the price. Whether any of that counts toward your required equity depends on the lender, so ask before you assume.
What Moves the Number for Your File
Two investors can bring the same deal to the same lender and get different answers. These are the levers, in rough order of weight:
- Completed projects. This is the biggest driver. Documented flips move you up the tiers.
- Deal margin. The spread between all-in cost and ARV decides whether the cost test or the ARV cap controls.
- Credit. A 620 minimum score applies, with additional conditions below 660. First-time investors qualify at the lower leverage tiers.
- Liquidity. Proof of reserves tells the lender you can absorb a surprise.
- Scope and property. The program covers non-owner-occupied residential, 1-4 units. Ground-up construction runs to 10 units.
Underwriting stays asset-based, meaning the property, the plan, and the exit are what get reviewed. Credit still matters at the edges, but it is not the engine of the decision.
Cash to Close Is Bigger Than the Down Payment
Treat the down payment as one line in a longer budget. Your cash at closing includes your equity in the deal, points and lender fees, closing costs, insurance, and any reserves the lender wants shown. Your rehab draws then arrive after work is done, so you also need to carry the project between draws.
A simple formula helps: cash needed equals your share of project cost, plus fees and closing costs, plus insurance and reserves, plus working cash for the gaps between draws. Most first-timers underbudget the last item. Loans run 6 to 18 months, interest-only, with no prepayment penalty. A project that slips past its schedule keeps costing you.
Loan amounts reach up to $5,000,000, with larger by exception, and smaller balances vary by lender. The lender may also ask for a purchase contract, a renovation budget and scope of work, bank statements, entity documents, and ID. Having them organized early makes comparisons cleaner.
How to Compare Lenders Without Getting Fooled
Ask every lender the same questions in the same order.
1. Is leverage measured on purchase price, total project cost, or ARV?
2. What is the ARV cap, and does it override the cost tier?
3. How are rehab funds released, and what does an inspection between draws involve?
4. What counts toward required equity?
5. Do you require asset seasoning, and how is it defined?
6. What reserves must I show, and when?
7. What changes at the next experience tier?
Comparing on price alone misses the point. A lender with a lower fee schedule but a tighter ARV cap can cost you more cash than one with higher fees and looser leverage. Look at total cash required, not any single line.
Ways to Lower Your Required Cash
You cannot negotiate a program sheet, but you can improve the file the sheet is applied to.
Buy with margin. A deal where all-in cost sits comfortably under the ARV cap lets the cost test do the work. Document your history. If you have finished projects, packaging them with addresses, scopes, and results can move you up a tier. Present a clear scope and budget, because a well-built renovation plan makes the draw schedule easier to trust. Show liquidity before you are asked. And work with a broker who sees several lenders, because the same file reads differently across the network.
Common Misreads
“Hard money means no money down.” Not in this network. Cost-based leverage tops out below 100%, and the ARV cap applies on top.
“Every lender wants the same percentage.” Published ranges vary widely.
“A big down payment fixes everything.” It helps, but it does not erase credit floors, property eligibility, or the ARV cap.
“Hard money lends on my credit.” It underwrites the deal and the exit first.
“This is the same as a DSCR loan.” It is not. Flip financing is sized on cost and finished value, while a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The two connect later, since many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, a path Lendmire brokers. The complete DSCR loans guide covers how that second stage works.
Key Terms Defined
After-repair value (ARV): The estimated market value of the property once the renovation is finished.
Loan-to-cost (LTC): The loan amount divided by the total project cost, meaning purchase price plus rehab.
Loan-to-value (LTV): The loan amount divided by the property’s value.
Draw: A release of rehab funds after a portion of the work is completed.
Reserves: Liquid cash a lender wants you to show after closing.
Seasoning: The time you have held an asset or funds before a lender counts them.
Where Distance and Structure Also Matter
Lendmire’s piece How a Hard Money Lender Treats Distant Comps on a First Flip explains how the ARV figure gets tested, which feeds directly into your cap.
Frequently Asked Questions
Is there a standard minimum down payment on a flip?
No. Each lender sets its own caps, and the number depends on the program, the deal, and your experience. In the network Lendmire places files with, leverage is tiered by completed projects at 85%, 90%, or 93% of project cost, always capped at 75% of ARV. Figures vary by lender, property, and experience.
Can a first-time flipper get hard money?
Yes, at the lower leverage tiers. First-time investors qualify with fewer than 2 completed projects at 85% of project cost, subject to the ARV cap and a 620 minimum score with additional conditions below 660. Eligibility is reviewed lender by lender, and nothing is guaranteed.
Does 100% financing really exist?
Not as a purchase program in this network. Up to 100% of the rehab budget can fund in draws, but that is a rehab figure, not a purchase LTV. Experienced investors get the highest cost-based tier, and the ARV cap still controls the final loan.
Does the down payment cover my closing costs and reserves?
No. The down payment is your equity in the project. Points, fees, closing costs, insurance, and reserves are separate, so budget for the full cash to close plus working cash between draws.
Can I lower my down payment by improving the file?
Often, yes. A wider margin between cost and ARV, documented completed projects, and a clear scope and budget can all move leverage in your favor. Each lender weighs these differently, which is why comparing several matters.
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. Reach the team at 828-256-2183 or request a quote. The calculator on the site gives an illustrative estimate only.
Tax treatment varies; consult a qualified professional.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
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. Nav: 100% financing hard money
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get an Interest-Only Hard Money Loan for a Fix and Flip? · Can an Investor Find a Hard Money Lender for a Fix and Flip? · Can Hard Money Cover a Fix and Flip Purchase?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.