Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
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.
The Quick Read: Yes, in practice, nearly every hard money lender sets a minimum loan size, even though no rule requires one. The floor is a business decision, and it varies by lender, by program, and by how the lender sizes the loan from cost and after-repair value. Smaller balances vary by lender, and some lenders skip tiny deals or price them higher.
- No law or regulator sets a minimum. Each lender sets its own floor.
- The loan is the lower of a cost-based test and an after-repair value (ARV) cap, so a cheap deal can land under a floor even when the plan is sound.
- Some floors are hard (the lender declines). Others are soft (the lender lends but adds a flat minimum fee).
- Programs placed through Lendmire’s wholesale network top out at $5,000,000, with smaller balances varying by lender, property, and experience.
- If your deal is under a floor, you can add scope, change lenders, or change the financing source.
Why Do Lenders Set a Floor at All?
A hard money lender spends about the same effort on a small file as on a large one. The property still needs a valuation, a title search, a rehab review, legal documents, and ongoing draw management. A small loan earns less fee income against that fixed work, so lenders set a floor to protect their economics.
That is the whole reason. It is not a judgment about your deal or your credit. It is arithmetic on the lender’s side.
A flip loan is also a form of bridge financing, meant to be repaid when the investor sells the property or refinances into longer-term financing. That repayment event is where the investor’s exit plan matters.
Is Any Rule Behind the Minimum?
No. These are business-purpose loans, and consumer-lending rules do not set loan sizes for them. The practical takeaway is short: there is no statutory floor, so the number you hit is whatever the lender chose.
How Is the Loan Amount Set on a Flip?
The loan amount is derived from the deal, not picked by the borrower. Two tests run side by side, and the lower result controls.
1. The cost test. The lender funds a percentage of project cost, meaning purchase price plus rehab budget.
2. The ARV cap. The total loan cannot exceed a set percentage of the after-repair value.
On the hard money program Lendmire brokers, fix-and-flip leverage is tiered by documented completed projects. It runs 93% of project cost at 5+ completed projects, 90% of project cost at 2+ completed projects, and 85% of project cost with fewer than 2. Every tier is capped at 75% of after-repair value. Up to 100% of the rehab budget funds in draws against completed work. That is a rehab-budget figure, not a purchase LTV. There is no true 100% purchase program. These figures vary by lender, property, and experience, and nothing here is a commitment to lend.
Here is why this matters for minimums. A low purchase price plus a light rehab produces a small project cost. Apply the leverage tier and the loan comes out small. If the ARV cap binds first, it comes out smaller still. The deal is fine. The loan is just under what some lenders want to write.
What Counts Toward the Minimum?
Lenders differ on this, and it is the first thing to ask. Some measure the total commitment, purchase advance plus rehab holdback. Others look at the initial advance only. A rehab holdback that counts toward the floor can lift a borderline deal over the line. One that does not count leaves it short. Get the answer in writing before you contract the property.
What Does a Small Loan Cost?
Small loans cost more per dollar borrowed. A flat minimum fee in dollars often sits next to a percentage origination fee. A flat dollar fee spread over a small balance raises the effective cost sharply. The same fee on a large balance barely registers.
Short holds can add another layer. Some lenders require a minimum interest period even if the investor sells early. A quick sale on a small flip therefore does not always shrink the cost the way an investor expects. Compare total cost, not just the headline terms.
This is also why a lower floor is not automatically a better lender. A lender that accepts a small balance may recover the economics through fees. Read the full term sheet.
Hard Floors, Soft Floors, and Program Floors
| Type | What happens | What to do |
|---|---|---|
| Hard floor | Lender declines loans below a set size | Change lenders or raise the loan |
| Soft floor | Lender lends but adds minimum fees | Compare total cost |
| Program floor | Floor differs by product | Ask for each program’s floor |
Floors also differ by lender type. Institutional and online lenders often publish higher floors. Smaller local private lenders may go lower. For Lendmire’s network, the working picture is loans up to $5,000,000, larger by exception, and smaller balances that vary by lender, property, and experience.
Do not assume one lender has one floor. The same shop may have a lower floor on its flip product than on its rental product, or the reverse.
Worked Example: A Deal That Clears and One That Falls Short
These are modeled assumptions, not market data. They use percentages only.
Deal A. A moderately priced purchase with a meaningful rehab. The investor has 2+ completed projects, so the cost test runs at 90% of project cost. The ARV is strong, so the 75% ARV cap does not bind. The project cost is large enough that the loan clears a typical floor, and the rehab holdback funds in draws.
Deal B. A very low-priced property with a cosmetic rehab. The investor is on a first flip, so the cost test runs at 85% of project cost. The project cost is small, so the resulting loan is small. Even though the numbers work, the loan can land under a lender’s floor.
For Deal B, the loan is small because the deal is small. Nothing is wrong with the investor. The fix is a different lender, more scope, or a different financing source.
What If My Deal Is Under the Floor?
You have four practical options.
| Option | Upside | Trade-off |
|---|---|---|
| Add rehab scope | Raises project cost and loan | Only if the added work earns its keep |
| Try a lender with a lower floor | Keeps the deal intact | Often higher fees on small balances |
| Use a local private lender | More flexibility on size | Terms vary widely, less standardized |
| Use other capital or a partner | Avoids the floor entirely | More cash or shared upside |
Adding scope only makes sense when the extra work raises the ARV. Padding a budget to hit a floor backfires, because the ARV cap still limits the loan and the lender reviews the plan. A scope of work that does not match the property will draw questions.
Switching lenders is the most common fix. Because Lendmire works with a wholesale network, it can compare how different lenders treat balance size, though availability depends on the file.
Questions to Ask Any Lender Before You Contract
- What is the minimum loan amount, and does it include the rehab holdback?
- Is there a minimum fee in dollars on smaller loans?
- Does the floor differ between the flip program and other programs?
- Is there a minimum interest period if I sell early?
- How do you size the loan: lower of cost-based and ARV-based?
- What credit score and experience tier applies to my deal? Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
On the credit side, the program Lendmire brokers uses a 620 minimum score, with additional conditions below 660. First-time investors qualify at the lower leverage tiers. Underwriting stays asset-based, meaning it looks at the property, the plan, and the exit. All of this varies by lender, property, and experience.
What Else Limits the Deal Besides Size?
A few eligibility points sit next to the minimum. The program covers non-owner-occupied residential property of 1-4 units, with ground-up construction to 10 units. Commercial, industrial, land or lots, hospitality, and owner-occupied properties are not offered. So a land-heavy or lot deal is not an option, whatever its size. Terms run 6-18 months, interest-only, with no prepayment penalty. There are no multi-year options.
Because the term is short, plan the exit before you contract. Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. Check the DSCR side too, because those loans carry their own loan-size ranges, which differ from flip-loan floors. DSCR compares rent to the full monthly obligation, and clearing it is not the same as positive cash flow. For the basics, see the complete DSCR loans guide.
Common Misconceptions
“There is an official minimum.” There is not. Each lender decides.
“Hard money is available at any size.” Very small loans are often unavailable or expensive.
“A low floor means a better lender.” A low floor can come with minimum fees. Compare total cost.
“The loan is whatever I ask for.” It is the lower of the cost-based and ARV-based tests.
“Hard money skips underwriting.” It does not. Underwriting is asset-based, but the lender still reviews the property, the rehab plan, your experience, and the exit.
“One floor applies everywhere.” Floors vary by lender and by program.
Key Terms Defined
ARV (after-repair value): The estimated value of the property once the rehab is finished.
Loan-to-cost: The share of purchase price plus rehab budget that the lender funds.
Rehab holdback: Rehab money held back and released in draws as work is completed.
Soft floor: A size below which the lender still lends but adds minimum fees or a pricing step-up.
Bridge loan: Short-term, collateral-backed financing repaid by a sale or permanent loan.
Frequently Asked Questions
Can I get a hard money flip loan for a very small amount?
Sometimes, but it is harder and costs more. Many lenders decline small balances outright, and those that accept them often add minimum fees. Smaller balances vary by lender, property, and experience, so ask before you contract the deal.
Does the rehab budget count toward the minimum?
It depends on the lender. Some count the total commitment, including the holdback. Others look at the initial advance. Ask which measure applies, because it can decide whether a borderline deal clears.
Is there a true 100% financing flip loan?
No. Leverage is measured against project cost and capped against ARV. Up to 100% of the rehab budget funds in draws against completed work, but that is a rehab figure, not a purchase LTV. The top tiers are reserved for experienced investors.
Can a first-time flipper qualify?
Yes, at the lower leverage tiers. The program Lendmire brokers uses 85% of project cost with fewer than 2 completed projects, capped at 75% of ARV. A 620 minimum score applies, with additional conditions below 660, subject to lender guidelines.
Do I need to plan the refinance before I buy?
Yes. Terms run 6-18 months, so the exit needs to be settled up front. If you plan to refinance into a rental loan, confirm that loan’s size range and coverage requirements too.
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’s hard money program details are available on request, and final terms depend on lender guidelines, property type, leverage, and the borrower’s credit profile.
For the other side of the sizing question, Lendmire’s piece Hard Money Maximum Loan Amount Requirements for a Flip shows how the ceiling is set. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges investor financing for real estate investors in 41 markets, including Washington, D.C. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Compare National and Local Hard Money Lenders for a Flip · Hard Money Flip Loan vs Private Money for a First-Time Investor · How a Hard Money Lender Sizes an Interest-Only Fix and Flip Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.