The Quick Read: A hard money flip loan is approved mainly on the property, the rehab plan, and your exit, so the paperwork centers on proving those three things plus who you are and what cash you hold.
- Deal file: the purchase contract, a scope of work, an itemized budget, and contractor bids.
- Borrower file: an experience sheet, entity papers if you buy through an LLC, ID, and credit authorization.
- Cash file: bank statements or proof of funds for your down payment and reserves.
- Exit file: a short summary saying whether you will sell or refinance.
- Lender-ordered: the appraisal, which sets the as-is value and the after-repair value (ARV), and title work.
Picture two investors with the same flip. One sends a contract and a rough repair number. The other sends a signed contract, line-item bids, a one-page track record, and entity papers that match. The second file gets read and priced. The first gets a list of questions.
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.
This article walks through that second package, item by item. It also covers what changes on a refinance, with a new LLC, or on a first flip.
What Are Hard Money Loan Qualification Documents?
They are the papers a private, asset-based lender uses to judge a short-term flip loan. Corporate Finance Institute describes hard money as short-term lending secured by the property itself. That explains the whole stack. If you default, the lender needs the property to be worth enough to recover the loan.
A bank mortgage asks a different question: can this person repay from income? Hard money asks: is this deal sound, and can this borrower finish it? So the file leans toward the deal. Pay stubs and employment letters matter less. Contracts, bids, comps, and cash matter more.
Some lenders still ask for a personal financial statement or traditional personal-income documentation as a secondary check. Others never do. Requirements vary by lender, property, and experience. Treat every list, including this one, as a starting point.
The Master Checklist
Here is the core stack for a flip purchase. The status column shows how firm each item usually is.
| Document | Why the lender wants it | Who supplies it | Status |
|---|---|---|---|
| Experience sheet | Sets your leverage tier | You | Required |
| Entity papers, EIN letter | Shows who owns and signs | You | Required if LLC |
| Purchase contract | Starts appraisal and underwriting | You and seller | Required on purchase |
| Scope, budget, bids | Sizes rehab funding and draws | You and contractor | Required |
| Bank statements | Proves cash and reserves | You | Lender-dependent |
| Exit summary | Shows how the loan gets repaid | You | Expected |
Two more items are not on you. The lender orders the appraisal and title work. Your job is to give them clean inputs.
Who You Are: Identity, Entity, and Experience
Start with a government ID and a signed application with credit authorization. Across Lendmire’s wholesale network, hard money flip programs generally start at a 620 credit score, with added conditions below 660. First-time investors can qualify at the lower leverage tiers. All of this varies by lender, property, and experience.
Entity papers. Many flippers buy through an LLC. Form the entity with the state first. Then apply for a federal tax ID, since the IRS Employer Identification Number page explains that entities get their EIN after the state filing. The usual set is the articles of organization, the operating agreement, and the EIN letter. Lenders read these for one thing: does the person signing have authority? A name typo or a missing signature is a common reason files get sent back. Entity loans are subject to lender program eligibility.
The experience sheet. This one page does real work. In the strongest hard money programs, leverage rises with documented completed projects. List each flip with the address, the dates you bought and sold, the purchase and sale prices, and a line on what you did. Keep it factual. Photos help.
For tiers, Lendmire’s network commonly ties flip leverage to completed projects:
- 85% of project cost with fewer than 2 completed projects.
- 90% of project cost at 2 or more.
- 93% of project cost at 5 or more.
Every tier is capped at 75% of after-repair value. These are loan-to-cost figures, meaning they measure against what you pay plus the rehab budget, not against a purchase price alone. Programs vary by lender, property, and experience, and nothing here is a commitment to lend.
What the Property Needs: Contract, Valuation, and Title
The executed purchase contract, with every addendum, comes first. The lender uses it to order the appraisal and to underwrite the deal. A refinance has no purchase contract. Lenders usually swap in a current mortgage statement and ask for an appraisal. Refinance leverage also runs lower: cash-out and rate-and-term refinances commonly top out at 65% of value in the network.
Then comes the value question. The lender sets the as-is value and the ARV, and sizes the loan against them. Corporate Finance Institute’s loan-to-value overview shows the basic idea: lenders compare the loan to the collateral’s value. In practice, the ARV the lender’s appraiser arrives at controls the loan, not the figure you estimated. You can hand over a comparable-sales analysis, and you should. It shows your thinking, and numbers that line up with the lender’s appraiser build trust. It does not replace their valuation.
What a good ARV package looks like:
1. Recent sales of similar homes near the property, after similar work.
2. Notes on size, bed and bath count, and condition for each comp.
3. A short explanation of why each comp fits.
Expect the lender to also want proof of insurance naming them, and title work run through a title company. Pick the title company early so nobody waits on a name.
The Rehab Package: Scope, Budget, Bids, and Draws
A rough repair number may get you an early quote. Full approval usually needs more. Lenders want an itemized scope of work: room by room, trade by trade, with a cost beside each line. Add bids from licensed contractors whose numbers back up your budget.
Here is how that looks side by side.
- Weak: one lump sum for kitchen, bath, and flooring.
- Strong: cabinets, counters, plumbing fixtures, labor, and permits as separate lines, matched to a bid.
The budget does double duty. It sizes the rehab funding, and it becomes the basis for draws. In Lendmire’s network, up to 100% of the rehab budget funds through draws against completed work. That is a rehab figure, not a purchase loan-to-value. Most draws reimburse finished work. A lender inspects a stage, then pays. So you front the cost of each phase, which means working capital beyond your down payment.
Plan for the draw schedule too. It breaks the scope into stages and lines up each one with an inspection request. Fees for inspections or wires may apply per draw, depending on the lender. If costs run over, the extra generally comes out of your pocket, because the agreed budget is the budget.
One practical warning: do not pay contractors in full upfront. Pay by phase under a written contract, so your payments track the lender’s.
Proof of Funds and Reserves
Good lenders confirm you can actually cover your side of the deal before they approve it. That means your down payment, closing costs, and a cushion for the unexpected.
The usual proof is recent bank statements for the accounts holding that cash. Some lenders ask for a personal financial statement as well. How many statements, and how much cushion, varies by lender. Keep the source of any large deposit clear, because a lender may ask where it came from.
Liquidity also helps with leverage. Proven operators sometimes win exceptions because their cash backs up their track record. It is not a replacement for the deal, though. Strong cash cannot rescue a weak scope.
The Exit Summary
Give the lender a short summary of the loan amount, the project timeline, and the exit: sell or refinance. Terms commonly run 6 to 18 months, interest-only, with no prepayment penalty, so the timeline should fit inside that window with room to spare.
If your plan is to keep the property, say so. Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized and rented, and Lendmire arranges that path. That later loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so it does not use this document stack. Lendmire’s complete DSCR loans guide explains how it works.
A Sample File, Labeled
Here is a clean flip package for a single-family purchase through an LLC.
- Borrower: an LLC with two prior completed flips, which fits the 90% of project cost tier.
- Experience sheet: two projects, each with address, dates, and results.
- Entity packet: articles, operating agreement, and EIN letter, all matching the signer’s name.
- Contract: fully executed, with addenda.
- Scope and budget: itemized by trade, matched line by line to two licensed bids.
- ARV support: a short comp summary the lender can check against its own.
- Cash: recent statements showing the down payment and a reserve cushion.
- Exit: sell after completion.
Nothing here is exotic. It is simply complete and consistent.
When Should You Gather What?
Sequence helps more than speed does.
- Before you make an offer: build the experience sheet, form the LLC, get the EIN, and pull bank statements.
- Under contract: send the executed contract, your scope, and your bids so the appraisal can be ordered.
- After terms arrive: supply the remaining underwriting items, choose title, and arrange insurance.
- After closing: use the draw schedule. Submit each inspection request as stages finish.
Why Files Get Sent Back
Most returns come from mismatches, not missing talent.
- Entity papers disagree. The LLC name on the contract differs from the operating agreement. Fix the name before you sign.
- Budget and bids don’t match. Your budget says one thing and the contractor’s bid says another. Reconcile them in writing.
- Statements are stale or incomplete. Send the most recent pages for every account listed.
- Scope is a lump sum. Break it into trades and lines.
- Insurance or title isn’t set. Name the lender and pick the title company early.
Where the General Rule Bends
Purchase versus refinance. A refinance swaps the purchase contract for a mortgage statement, as noted above. It also caps leverage lower.
Individual versus entity. Buying in your own name skips entity papers. Lenders may still require a personal guarantee when you borrow through an LLC.
Brand-new LLC. A new entity has no history, so lenders lean harder on your personal track record and cash.
Experienced operators. Proven investors may run several loans at once, and lenders may cap total exposure. Liquidity can earn exceptions.
Collateral. Hard money here covers non-owner-occupied, 1-4 unit residential property, and ground-up construction up to 10 units. Commercial, land, and owner-occupied properties are not offered.
One more point. Business-purpose lending sits outside the consumer-mortgage rules, which is why no federal document list exists for it. The CFPB’s Regulation Z scope rule exempts business-purpose credit. Each lender sets its own list, and loan amounts in the network reach up to $5,000,000, larger by exception.
Key Terms Defined
After-repair value (ARV): the lender’s estimate of what the property will be worth once the work is done.
Loan-to-cost: the loan as a percentage of what you pay for the property plus the rehab budget.
Draw: a release of rehab funds after the lender inspects completed work.
Scope of work: an itemized list of every repair, with a cost for each line.
Proof of funds: statements or letters showing you hold the cash for your down payment and reserves.
EIN letter: the IRS notice that assigns your LLC its federal tax ID.
Frequently Asked Questions
Do hard money lenders ask for traditional personal-income documentation and pay stubs?
Some do, as a secondary check, and many flip files never need them. The lender is judging the property, the plan, and your exit first. Requests vary by lender, so ask early rather than assuming either way.
Can a first-time flipper qualify without a track record?
Often yes, at the lower leverage tiers. In Lendmire’s network, fewer than two completed projects falls into the 85% of project cost tier, capped at 75% of ARV. A stronger scope, solid cash, and a clear exit make up for a thin history. Varies by lender, property, and experience.
Do I need an appraisal before applying?
No. The lender orders its own appraisal after receiving your contract and scope. Bring a comp analysis to support your ARV, but expect the lender’s numbers to govern.
What if I can’t get one of the documents?
Tell the lender what is missing and offer a substitute. A broker-prepared summary or a different bank statement may do, depending on the lender. Silence is the worst option.
Should I buy in my name or an LLC?
Either can work. An LLC needs a matching set of entity papers and an EIN, and a lender may still ask for a personal guarantee. Entity borrowing is subject to lender program eligibility.
Next Step
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 broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Request a quote or call 828-256-2183.
About Lendmire
Lendmire, NMLS# 2371349, is a non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
Many investors treat hard money as the acquisition tool and plan the exit up front – see the hard money loan overview.
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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. Corporate Finance Institute: Hard Money Loan
2. IRS: Employer Identification Number
3. Corporate Finance Institute: Loan to Value Ratio
4. CFPB: Regulation Z, Section 1026.3
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 a Business Owner Qualify for a Larger Hard Money Flip Loan? · Can a 1099 Contractor Get a Hard Money Loan to Flip a House?
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
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.