The Quick Read: Where you live does not set your borrowing ceiling on a short-term investor loan. The property, your track record, the exit plan, and each lender’s guidelines do. Through select lenders in Lendmire’s wholesale network, flip leverage tops out at 93% of project cost, never above 75% of after-repair value, and balances reach $5,000,000.
- Out-of-state is not a leverage tier. The limits follow the deal and your experience, not your zip code.
- Flip leverage on a rehab purchase runs 85%, 90%, or 93% of project cost, depending on completed projects. Every tier is capped at 75% of after-repair value.
- A bridge purchase with no rehab goes up to 80% of purchase price. A cash-out or rate/term refinance goes up to 65% of value.
- Loan amounts run up to $5,000,000, larger by exception.
- Everything varies by lender, property, and experience. Nothing here is a commitment to lend.
Does Living Out of State Lower Your Limit?
No published rule cuts leverage because the borrower lives elsewhere. A hard money loan is asset-based credit. The lender looks at the collateral, the plan, and the way out of the loan. Your address matters mostly for logistics.
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.
That said, location shows up in two practical ways. First, the property’s state must be one the lender serves. Lendmire arranges these loans in 41 markets, including Washington, D.C. Louisiana, Minnesota, North Dakota, South Dakota, Baltimore, Chicago, and Detroit are outside that footprint. Second, a lender’s comfort with remote files can shape how it treats a thin comp set or a first project. That is lender appetite, not a statute.
Licensing and interest limits generally follow the state where the property sits, not where you live. Because the rules vary by state, the lender handles that side of the file.
The Four Limits That Actually Cap Your Loan
Four separate ceilings sit on every file, and the smallest one wins. Understanding which one binds is how you predict your real loan amount before you apply.
1. Loan-to-cost. This is the loan as a percentage of what you pay plus the rehab budget. It is the main lever on a flip.
2. After-repair value cap. Lenders also cap the loan against what the finished property should be worth. On the flip program, that cap is 75% of after-repair value at every tier.
3. Loan-to-value. On a purchase without rehab, or a refinance, the loan is measured against current value.
4. Dollar range. Balances go up to $5,000,000, and larger by exception. Smaller balances vary by lender.
Nav explains that lenders may size a hard money loan on purchase price or on after-repair value, and that sizing on the later value generally costs more because the risk is higher. That matches what we see across the network.
The Program Limits at a Glance
Across the lenders we place files with, leverage steps up with documented completed projects. Experience is a common reason two investors buying the same house get different loan sizes.
| Transaction | Maximum leverage | Notes |
|---|---|---|
| Fix-and-flip, 5+ completed projects | 93% of project cost | Capped at 75% of after-repair value |
| Fix-and-flip, 2+ completed projects | 90% of project cost | Capped at 75% of after-repair value |
| Fix-and-flip, fewer than 2 projects | 85% of project cost | Capped at 75% of after-repair value |
| Bridge purchase, no rehab | Up to 80% of purchase price | Non-owner-occupied 1-4 units |
| Cash-out or rate/term refinance | Up to 65% of value | Investment property |
| Ground-up construction, 3+ projects | 90% of cost, 75% of completed value | Up to 10 units |
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, and the top tier is reserved for experienced investors. All of this varies by lender, property, and experience.
Credit starts at a 620 minimum score, with additional conditions below 660. Underwriting stays centered on the property, the plan, and the exit.
How the Binding Limit Gets Picked
The lender runs the cost test and the value test, then takes the lower result. Run the logic in percentages and you can see the pattern.
Say your purchase plus rehab equals 80% of the projected after-repair value, and you sit in the 90% tier. Ninety percent of cost works out to 72% of after-repair value. That is under the 75% cap, so cost binds.
Now say the project cost equals 88% of the after-repair value, with the same 90% tier. Ninety percent of cost would be 79.2% of that value. The 75% cap overrides it, so value binds. You bring more cash than the headline percentage suggested.
Here is the lesson for a remote buyer. A deal with thin margins between cost and finished value gets trimmed by the cap, regardless of your tier. Strong leverage tiers do not fix a deal that is priced too close to its resale value.
Why Your Approved Amount Can Come In Lower
A requested amount and an approved amount often differ. These are the usual reasons.
- The after-repair value comes in lower than your estimate. Lenders project value from renovated comparable sales. Thin or mixed comps in an unfamiliar neighborhood lower it.
- The appraisal or price opinion lands below the contract price. Leverage then applies to the lower figure.
- The rehab budget looks light. Lenders check scope and contractor pricing, and unrealistic numbers get adjusted.
- Your experience tier is lower than you assumed. Only documented completed projects count toward the higher tiers.
- Credit sits in the 620-659 band. Additional conditions apply there.
- The property is outside the program. Commercial, industrial, land, hospitality, and owner-occupied properties are not offered.
What Remote Investors Need to Add
Because rehab money is reimbursed, not advanced, you fund the first phase of work yourself. Draws pay back verified work, and inspection is usually the deciding signal. Lien waivers from contractors commonly stall a draw package. A remote investor needs a local representative, a clean payment trail, and a contractor who documents progress.
Investors who buy from a distance often rely on video walk-throughs and local inspectors. Closing without a walkthrough happens, but it raises the odds of a condition surprise. Budget for a contingency, not just the contractor’s bid.
Lenders also read the borrower side. They look at liquidity, credit, experience, and the rehab timeline. A newer remote investor commonly gets the 85% tier and a closer look at cash reserves. That is a policy reflecting experience. Your location does not trigger it.
A Quick Word on Rules (and Why They Rarely Slow You Down)
Hard money loans are business-purpose loans on non-owner-occupied investment property, so they are reviewed differently from a standard owner-occupied mortgage. The CFPB’s rule on business-purpose credit exempts credit extended primarily for a business or commercial purpose, and the lender decides that loan by loan. Under the RESPA rule, temporary financing such as a construction loan is exempt too, though not when it converts to permanent financing with the same lender.
The practical takeaway is simple. Keep the loan clearly tied to the investment, and expect the file to be judged on property, plan, and exit.
The Exit Plan Is the Real Limit
A 6-18 month interest-only loan works only if something repays it. You either sell, or you refinance. The exit shapes how much you should borrow, because a maximum loan that you cannot refinance is a liability.
Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. DSCR is the debt service coverage ratio, which compares the property’s rent to its full monthly obligation. The takeout lender sizes on its own appraisal and its own rent figure, not on your after-repair estimate. Seasoning, the waiting period before a refinance, is lender policy and varies, so confirm it with the exit lender before you buy. Our complete DSCR loans guide walks through how that exit loan is reviewed.
Run the coverage math before you close the bridge. If the finished rent does not cover the long-term payment at a workable leverage level, the takeout may require more cash than you planned.
Tax treatment varies; consult a qualified professional.
What the Limit Does Not Cover
The headline percentage hides real cash needs. Leverage at the top tier still leaves you funding part of the cost. You also cover closing costs, interest while the loan runs, reserves, and any contractor float while you wait on draws.
Think of the loan limit as the lender’s contribution, not your total budget. Investors who size only the lender’s piece commonly come up short in the middle of the rehab.
Key Terms Defined
Loan-to-cost. The loan amount as a percentage of purchase price plus rehab budget.
After-repair value. The estimated value of the property once the renovation is finished.
Draw. A payout of rehab funds, released after the lender verifies completed work.
Seasoning. The waiting period a refinance lender wants before it will size a loan on the property’s new value.
Interest-only. A loan structure where you pay interest during the term and repay the principal at the end.
Exit strategy. How you repay the loan: a sale or a refinance.
Frequently Asked Questions
What is the maximum hard money bridge loan amount?
Balances run up to $5,000,000 through select lenders in the network, and larger by exception. Leverage is the tighter constraint. On a flip, the loan is capped at 75% of after-repair value, whatever the loan size. All of it varies by lender, property, and experience.
Do out-of-state investors get lower leverage?
Not by rule. Leverage follows your documented completed projects, the deal’s margins, and the lender’s guidelines. If you have fewer than 2 completed projects, you land in the 85% of project cost tier no matter where you live.
Can I get 100% financing on a bridge loan?
Not on the purchase. There is no true 100% purchase program. Up to 100% of the rehab budget can be funded in draws against completed work, but that is a rehab-budget figure, and you still bring cash for the acquisition.
What happens if the appraisal comes in low?
The loan shrinks to match. Leverage applies to the lower value, so you bring more cash or renegotiate the price. Strong renovated comps in your file help support the after-repair figure, subject to lender review.
How long can I keep the loan?
Terms run 6-18 months, interest-only, with no prepayment penalty. There are no multi-year options on the current program. Investors who need longer runway refinance into long-term rental financing.
If You Are Buying, Rehabbing, or Refinancing From a Distance
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.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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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.
References
1. Nav, How Do Hard Money Loans Work
2. CFPB, Regulation Z § 1026.3
3. Cornell LII, 12 CFR § 1024.5
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? · Does a Hard Money Bridge Loan on a 2-4 Unit Need a Down Payment? · Can a 1099 Contractor Get a Hard Money Loan to Flip a House?
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.