The Quick Read: Yes, but only when you measure against project cost rather than value. Across most programs in the wholesale network Lendmire places files with, flippers can borrow 85% to 93% of project cost depending on experience, with up to 100% of the rehab budget paid out in draws, yet every tier is capped at 75% of after-repair value, so that cap usually decides the final loan.
- Leverage on cost can run high. Leverage on value stays moderate.
- The top cost tier is reserved for experienced investors with several completed projects.
- The lender uses whichever limit produces the smaller loan.
- Rehab money is released in draws against completed work, not handed over at closing.
- No true 100% purchase program exists, so plan on bringing real cash.
All figures here are typical ranges that vary by lender, property, and experience. They are not a commitment to lend.
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.
Which “High LTV” Are You Asking About?
Three different ratios get called leverage, and they answer different questions. Mixing them up is why one lender’s “90%” and another’s “75%” can both be true on the same deal.
| Ratio | Loan divided by | What it controls |
|---|---|---|
| Loan-to-cost (LTC) | Purchase plus rehab budget | How much of your spend is financed |
| After-repair value (ARV) cap | Estimated finished value | The ceiling on the total loan |
| As-is LTV | Value today, before work | Bridge and refinance loans |
For a flip, the ARV is what matters most. Hard money lenders typically size the loan against after-repair value rather than today’s value. The basic loan-to-value formula and the choice of which “value” goes in the denominator are laid out by Corporate Finance Institute. A hard money loan is private, short-term, and secured by the property, as Corporate Finance Institute describes it. The property is the main event.
How the Leverage Stack Works
A flip loan runs two tests at once, and the smaller result wins. The first is the cost test: your tier percentage times total project cost, meaning purchase price plus rehab budget. The second is the value test: 75% of ARV on the programs in this network, with the exact cap varying by lender, property, and experience.
Here is the tier structure most programs Lendmire works with follow:
| Experience | Max of project cost | ARV cap |
|---|---|---|
| Fewer than 2 completed projects | 85% | 75% |
| 2 or more completed projects | 90% | 75% |
| 5 or more completed projects | 93% | 75% |
Nobody gets to skip the last column. The cost figure is the headline. The ARV cap is the fine print that does the work.
Rehab money behaves differently from purchase money. Up to 100% of the rehab budget is typically funded in draws, released as inspected work is completed. That is a rehab-budget figure, not a purchase LTV. You still fund the purchase gap up front, plus closing costs.
Three Deals, Three Outcomes
Run the numbers on three illustrative projects, expressed as shares of ARV. These are modeled assumptions, not market data.
Deal one: the cost test binds. Total project cost is 75% of ARV, and the investor sits in the 90% tier. Ninety percent of cost equals 67.5% of ARV. That is under the 75% cap, so the cost test sets the loan. The investor funds the remaining 10% of project cost plus closing costs. This is the leverage everyone pictures.
Deal two: the ARV cap binds. Total project cost is 85% of ARV, a thin-margin deal, and the investor is also in the 90% tier. Ninety percent of cost would be 76.5% of ARV, which is over the cap. The loan drops to 75% of ARV. Because project cost is 85% of ARV, the investor now funds the remaining 10% of ARV out of pocket, which is roughly 12% of project cost rather than the 10% the tier suggests. The leverage looked high on paper, but the ARV cap trimmed it.
Deal three: a first-time flipper. Project cost is 75% of ARV, and the investor sits in the 85% tier. Eighty-five percent of cost is about 64% of ARV. The cost test binds again, and the cash requirement is simply larger. First-time investors typically qualify at the lower tiers, with better terms as they build a track record.
The lesson: a wide margin between cost and ARV is what makes high leverage possible. If your total cost is already close to the finished value, the top tier does nothing for you.
What “100% Financing” Really Means
When you see 100% in a flip lender’s marketing, it almost always refers to the rehab budget. It is not the purchase price and not the whole project.
Hard money programs in this network do not offer a true 100% purchase loan. When a lender advertises something that sounds like full financing of the whole deal, it often means extra collateral secured on other property, or the pitch is built around a different measurement than you assumed. Ask what the percentage is applied to before you get attached to the number.
Even with the rehab fully funded, you still pay:
- the gap between the purchase loan and the purchase price,
- closing costs and lender fees,
- interest carry through the hold period,
- any budget overruns, since draws follow the approved scope.
What Moves Your Leverage Up or Down
Experience is the biggest lever. After that, the deal itself sets the ceiling.
- Completed projects. Documented flips move you up the tiers. The top tier is reserved for experienced investors.
- Margin. A low project cost relative to ARV leaves room under the 75% cap.
- ARV quality. Strong comparable sales hold up in the appraisal. Optimistic comps get cut.
- Scope of work. A clear budget supports draw approval. A vague one slows everything.
- Credit. The minimum is typically 620 on this program, with additional conditions below 660. Underwriting stays asset-based, so the property, the plan, and the exit lead the file.
- Exit. Lenders want to see a believable sale or refinance.
On terms, loans typically run 6 to 18 months, interest-only, with no prepayment penalty. Collateral is non-owner-occupied residential property, one to four units, with loan amounts up to $5,000,000 and larger by exception.
Lender pricing is a separate conversation, and Lendmire does not quote it in articles. Any calculator on this page is an illustrative estimate only. Its totals may include financing costs and carry, while project cost here means purchase price plus rehab budget.
Bridge and Refinance Loans Sit Lower
Not every hard money loan has a rehab piece. A bridge purchase with no renovation budget typically goes up to 80% of purchase price. A cash-out or rate-and-term refinance typically goes up to 65% of value.
Those loans have no ARV test because there is nothing to renovate. Lenders lend against what the property is worth today. If you bought a flip and finished it, a lender will treat the finished property as an as-is asset on refinance.
The Risks of Running High
More leverage preserves your cash for reserves and the next project. It also thins your cushion. Here is what that looks like in practice:
- ARV comes in low. If the appraisal lands below your estimate, the 75% cap shrinks the loan and you cover the difference.
- Budget overruns. Draws follow the approved scope, so surprise costs come out of your pocket.
- Longer hold. Interest-only carry keeps running while the property sits. The term is 6 to 18 months, and a slipping schedule eats margin.
- Thin exit. A sale price below projections leaves little room when you owe a high share of cost.
If you are weighing whether to sell the flip or keep it as a rental, Lendmire’s piece Sell vs. DSCR Hold on a Hard Money Flip for a High-Volume Flipper covers that decision in more depth.
Questions to Ask Any Lender
Compare offers by asking the same five things every time:
1. Is the quoted percentage based on purchase price, total cost, or ARV?
2. Who sets the ARV, and how?
3. Is rehab funded at closing or in draws, and how are draws approved?
4. What does my experience level change, and can I move up a tier?
5. What is my total cash to close, including fees and carry?
If a lender cannot answer the first question plainly, keep looking.
Key Terms Defined
Loan-to-value (LTV): the loan amount divided by the appraised value of the property.
Loan-to-cost (LTC): the loan amount divided by total project cost, meaning purchase price plus the rehab budget.
After-repair value (ARV): the estimated market value of the property once renovations are finished, usually based on comparable sales.
Draw: a release of rehab funds after the lender confirms a stage of work is complete.
Bridge loan: short-term financing for a purchase or transition, typically with no renovation budget attached.
DSCR: debt service coverage ratio, which compares a property’s rent to its full monthly obligation of principal, interest, taxes, and insurance.
Where the Exit Fits
A flip loan is bridge debt, so its exit is a sale or a refinance. Many investors refinance out of hard money into long-term DSCR financing once the property is leased and stabilized, and Lendmire brokers that path. That loan is sized on value and rent, not on your flip cost basis. On a rental cash-out, leverage typically tops out around 75% LTV across most of the network, with about six months of seasoning as the common expectation, subject to lender guidelines. The complete DSCR loans guide walks through how that works. Clearing the coverage test does not equal positive cash flow, since repairs, vacancy, and management sit outside the calculation.
Frequently Asked Questions
Can I get a fix and flip loan with no money down?
Not on the purchase. No true 100% purchase program exists in this network, and you will cover the gap between the purchase loan and the price, plus closing costs. The 100% figure usually applies to the rehab budget, which is released in draws as work is completed. Terms vary by lender, property, and experience.
Can a first-time flipper reach the top leverage tier?
No. The top tier of 93% of project cost is reserved for investors with five or more completed projects. First-time investors typically sit in the 85% tier and move up as they document finished flips. Credit and the strength of the deal still shape what a lender will offer.
What is the difference between LTV, LTC, and ARV?
LTV divides the loan by value, LTC divides it by total project cost, and ARV is the estimated value after repairs. On a flip, the cost-based figure can be high while the ARV cap, typically 75%, holds the total loan down. The smaller of the two results sets your loan amount.
Who determines the ARV?
The lender does, usually through an appraisal or valuation based on comparable sales and the planned scope of work. Your own estimate helps you plan, but the lender’s number is the one that sets the cap. Strong, well-documented comps give you the best chance of an ARV that holds.
Does higher leverage mean a bigger risk to me?
Yes. A smaller cash contribution leaves less cushion if the ARV comes in low, repairs overrun, or the sale takes longer than planned. Many investors accept that tradeoff to keep cash available for reserves. Stress-test the project at a lower ARV before you commit.
Compare Your Options
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 mortgage broker arranging financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Call 828-256-2183 to talk through a project.
For more on how limits are set, see Lendmire’s article Hard Money Fix and Flip Loan-to-Value Limits on Purchase and Rehab.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines, which works for self-employed investors, LLC operators, and portfolios above four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your investment property. No commitment required.
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: Loan to Value Ratio
2. Corporate Finance Institute: Hard Money Loan
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 a Hard Money Lender Sizes an Interest-Only Fix and Flip Loan · Hard Money Application Fee Rules for a Fix-and-Flip Purchase · How to Replace Seller Financing With a Hard Money Loan on a First Flip
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
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.