The Quick Read: Not directly. A calculator returns an estimate of the maximum loan based on the purchase price, rehab budget, and after-repair value you type in, while the amount a lender actually funds depends on its own valuation, its leverage tiers, and how much is held back for rehab. Treat the number as a pre-screen, not a commitment.
- The loan is sized on the lower of a cost test and an after-repair-value cap, so one input usually decides the outcome.
- The lender’s valuation replaces your ARV estimate, and a lower number shrinks the loan.
- Rehab money is typically held back and released in draws, so the loan is not all wired at closing.
- Cash to close covers the down payment plus closing costs, title, insurance, and valuation fees.
- Across the wholesale network, leverage tiers rise with completed projects, and the top tier is reserved for experienced investors.
How Does a Hard Money Calculator Size the Loan?
A calculator multiplies a leverage percentage by a basis, then adds included rehab costs. A typical formula applies the leverage percentage to the purchase price or ARV, according to a published hard money calculator’s formula breakdown. Different bases give different loan amounts from the same deal.
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.
Two definitions matter. FitSmallBusiness defines loan-to-value as the loan divided by the purchase price or appraised value, whichever is lower, and loan-to-cost as the loan divided by the purchase price plus repairs. Lenders mix these terms loosely, so clarify which one a quote means.
In practice two tests run at once:
- Cost test: the loan-to-cost percentage applied to purchase plus rehab.
- Value test: a cap applied to the after-repair value.
The lower result governs. On the program side, Lendmire arranges fix-and-flip files through its wholesale network where leverage is tiered by documented completed projects: 85% of project cost with fewer than two, 90% with two or more, and 93% with five or more. Every tier is capped at 75% of after-repair value. These figures vary by lender, property, and experience, and nothing here is a commitment to lend.
Why Does the ARV Cap Usually Win?
On thin-margin deals the ARV cap binds, and it pulls the loan below what the cost percentage alone would allow. A generous cost tier means little if the value cap is lower.
Run the numbers on a modeled deal: a purchase price of $100,000, a rehab budget of $60,000, and an ARV of $200,000. The cost test at 90% of project cost points to a smaller figure than the 75% ARV cap, so the cost test governs. The same deal with an ARV of $150,000 flips the result, and the ARV cap governs instead. Those inputs are assumptions for illustration, not market data.
The sizing method matters most when the margin is thin. A deal with a wide spread between total cost and ARV is cost-limited. A deal with a narrow spread is value-limited. Before you trust a headline leverage number, work out which side of that line your project sits on.
| Sizing test | Basis | When it binds |
|---|---|---|
| Loan-to-cost | Purchase plus rehab | Wide margin between cost and ARV |
| ARV cap | After-repair value | Thin margin or high rehab share |
| Loan-to-purchase | Purchase price only | Used by some lenders as a third test |
Whose Valuation Counts?
The lender’s valuation counts, not yours. Hard money lenders typically order a subject-to-completion appraisal, which values the property as if the repairs were finished, based on your plans and budget. That differs from a standard bank loan, which leans on as-is value.
If the appraised ARV lands below your estimate, the loan is resized to the lower number and you bring more cash. This is the single biggest swing factor in the whole exercise. Underwrite your ARV conservatively with comparable sales, and assume the lender’s figure may come in lower.
What Is Actually Wired at Closing?
Less than the loan amount, in most cases. The loan splits into an acquisition portion that funds the purchase and a rehab portion that goes into a lender-controlled holdback. Up to 100% of the rehab budget typically funds in draws against completed work. That is a rehab-budget figure, never a purchase LTV.
A “100% financing” pitch deserves a close read. There is no true 100% purchase program in the network. A claim of full rehab financing means the budget is available in draws after the work is done, not delivered at closing.
Draws generally require a package: invoices, dated photos, an updated budget, and lien waivers. The practical effect is that you front early rehab costs and get reimbursed, so cash on hand matters as much as the loan terms. Some lenders advance a portion of rehab money at closing, but treat that as an exception rather than a norm.
Interest also accrues on the drawn balance, not on the full commitment. A calculator that charges interest on the full loan for the full term may overstate carry cost.
Loan Amount vs. Cash to Close vs. Total Project Funding
These three numbers get blurred, and the confusion is the heart of “real loan amount.” They are different figures:
| Figure | What it covers |
|---|---|
| Loan amount | Acquisition portion plus rehab holdback |
| Cash to close | Down payment plus closing costs, title, insurance, valuation fees |
| Total project funding | Loan draws plus your own cash across the whole project |
The leverage percentage describes purchase plus rehab up to the ARV cap. It does not cover closing costs or reserves. Plan to bring cash for title, insurance, valuation, and fees. For context on the broader market, Chase puts typical hard money down payments at 20% to 35%, a market-wide range that differs by lender and is separate from the network tiers above.
Points, where a lender charges them, scale with the loan. FitSmallBusiness shows how a larger loan means a larger dollar fee. A calculator that applies points to the wrong base will skew the result.
What Do Calculators Leave Out?
Most calculators model a clean version of a deal. Real files carry friction the tool cannot see.
| Item | Why it moves the number | Direction |
|---|---|---|
| Lender’s appraised ARV | Replaces your estimate | Usually lowers |
| Closing, title, insurance | Paid in cash | Raises cash needed |
| Rehab holdback | Held until work is inspected | Lowers day-one funds |
| Extra holding time | Adds carry between draws | Raises cost |
| Leverage tier by experience | Depends on completed projects | Raises or lowers |
Garbage in, garbage out applies hard here. The inputs that quietly inflate results are an optimistic ARV, an understated rehab budget, ignored holding time, and points calculated on the wrong base. A calculator is only as honest as the person typing.
This site also offers an editable, illustrative calculator. Use it as a rough estimate of structure, not as a quote or an actual figure.
Where Calculator Numbers and Term Sheets Diverge
Across our wholesale network, the gap between a calculator’s output and a lender’s term sheet usually traces to one of four things. The lender’s tiers differ from the calculator’s defaults. The appraised ARV differs from the borrower’s. The experience tier is lower than assumed, often because completed projects must be documented. And the rehab share held back is larger than the borrower expected. Lenders also define leverage terms differently, so the same percentage can describe different bases. Comparing a few lenders’ term sheets side by side usually shows more variation in how the loan is sized than in the headline percentage.
A Reconciliation Checklist Before You Make an Offer
Never write an offer on a calculator’s loan figure. Run this check against any term sheet:
1. Confirm which leverage basis the lender uses: cost, ARV, or purchase price.
2. Ask what ARV the lender will underwrite, and how it is determined.
3. Ask which tier your completed-project count places you in.
4. Ask how much of the loan is held back and how draws are released.
5. Ask whether any rehab money is advanced at closing.
6. Confirm how interest is calculated: on the drawn balance or the full amount.
7. Total your cash to close, plus the rehab you will front, plus carry between draws.
Plan the exit before you pick the leverage tier. Terms in the network run 6 to 18 months, interest-only, with no prepayment penalty, so the clock is real. Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and the rental-income test on that take-out is separate from the asset-first sizing of the short-term loan. Lendmire’s complete DSCR loans guide covers that next step.
Edge Cases Worth Knowing
If a lender’s appraisal comes in low, the loan resizes and your cash goes up. If the deal is a bridge purchase with no rehab, leverage runs up to 80% of purchase price, a different structure from the fix-and-flip tiers. Cash-out and rate-and-term refinances run up to 65% of value. Ground-up construction follows its own tiers, with up to 90% of cost and 75% of completed value at three or more completed projects.
Credit matters less than the asset, but it is not irrelevant. The minimum score is 620, with additional conditions below 660, and first-time investors qualify at the lower leverage tiers. Underwriting stays asset-based, looking at the property, the plan, and the exit. Loan amounts run up to $5,000,000, larger by exception, and the product covers non-owner-occupied residential property of one to four units, with ground-up construction up to ten.
Sizing for experienced investors differs from sizing for beginners. If you run a business entity and want to see how the top-tier maximum plays out, Lendmire’s piece Maximum Hard Money Flip Loan Amount for Business Owners walks through it. The structure of the file, not the tool, ends up deciding the number.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
ARV (after-repair value): the estimated value of the property once repairs are complete.
Loan-to-cost (LTC): the loan divided by purchase price plus repair costs.
Loan-to-value (LTV): the loan divided by the property’s value, whichever the lender uses as the basis.
Holdback: the rehab portion of the loan that the lender holds until completed work is inspected.
Draw: a release of holdback funds against documented, finished work.
Cash to close: the money you bring at closing, separate from the loan amount.
Frequently Asked Questions
Is a hard money calculator a quote?
No. It is an illustration built from your inputs and generic assumptions. A real figure comes from a lender’s valuation and underwriting of your specific project, which is why different lenders can return different amounts on the same deal.
Why is my approved loan lower than the calculator showed?
Usually the lender’s ARV came in below yours, the ARV cap bound before the cost test, or your experience tier was lower than the calculator assumed. Any of these shrinks the loan and raises the cash you need. Leverage varies by lender, property, and experience.
Does a calculator include rehab money?
Many include rehab in the cost basis, but they rarely show that the rehab portion is held back and released in draws against completed work. You typically front early costs and get reimbursed after inspection, so plan cash accordingly.
Is cash to close the same as my down payment?
No. Cash to close is the down payment plus closing costs, title, insurance, and valuation fees. The leverage percentage does not cover those, so they come out of pocket.
Does hard money ever fund 100% of a purchase?
No true 100% purchase program exists in the network. Full rehab financing means the budget is available in draws after work is done. The highest cost tier is reserved for experienced investors and is capped by the ARV test.
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. Investors can also see how documentation affects a file in Lendmire’s article Does an LLC Need to Show Tax Returns for a Hard Money Loan?.
For current guidelines and terms, see Lendmire’s hard money loan programs page.
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).
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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. Calculator.now — Hard Money Loan Calculator
2. FitSmallBusiness — Hard Money Loan Calculator
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 Maximize a HELOC Within Combined Loan-to-Value Limits · Hard Money Documentation for a Flip Exiting Into a DSCR Loan · How Much a Hard Money Bridge Loan Lends Against Substantial Equity
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- 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.