The Quick Read: Usually yes for the front half: you can submit the deal, upload documents, and get a pre-qualification online, but final approval still rests on an underwriter reviewing the property, the scope, the exit plan, and a valuation that someone has to order, and that part of the file is not automated. Think of the internet as the intake desk, not the decision-maker. The deal gets approved, not the person.
- Applications, document uploads, and pre-qualification are generally online.
- Valuation, inspection, title work, insurance, and closing signatures involve people and third parties.
- Leverage on the network is tied to project cost and after-repair value, and experience changes the tier.
- First-time flippers can qualify, but at lower leverage tiers.
- Draws pay for rehab after work is done, so you need cash on hand to start.
What “Approved” Means at Each Stage
“Approved” means different things at different points. Many borrowers hear it after the first screen and assume the loan is done. It isn’t.
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.
A hard money flip loan is short-term, interest-only financing for buying and renovating an investment property you plan to sell or refinance. The lender looks mostly at the asset: the purchase price, the renovation plan, and what the property should be worth when finished. Here is how the ladder usually climbs.
| Stage | What it means | Who decides | Online? |
|---|---|---|---|
| Quote or screen | A rough read on fit | Software or a loan officer | Yes |
| Pre-qualification | Terms sketched on your numbers | Loan officer | Yes |
| Term sheet | A proposed structure on the deal | Lender | Mostly |
| Conditional approval | Approved, pending valuation, title, insurance | Underwriter | Partly |
| Clear to close | Every condition satisfied | Underwriter and title | Signing varies |
Only the first two rungs are routinely automated. Everything from the term sheet up depends on documents and third-party reports. A pre-qualification is a conversation starter that rests on the numbers you typed in, and it can change once the property is valued.
What You Can Do Online
Most of the intake can happen from a laptop. Across the lenders Lendmire places files with, the early steps look similar:
1. Submit the deal. You provide the address, the purchase contract if you have one, the renovation budget, and borrower or entity details.
2. Upload the packet. Photos, a scope of work, entity documents, and proof of funds all travel as files.
3. Get a pre-qualification. A loan officer reviews your numbers against program tiers and tells you what leverage looks realistic.
4. Review a term sheet. The lender sends terms for the structure. You can usually sign this electronically.
5. Respond to conditions. Underwriters ask for items like insurance evidence and entity paperwork, and you send them through the portal.
That is a lot of the work, and it saves real time on paperwork. It does not replace the steps below.
What Stays Human
Four parts of a flip loan involve someone other than you and a screen.
Valuation. Someone has to confirm what the property is worth today and what it should be worth after repairs. That usually means an appraisal or a broker price opinion (BPO), which is a lighter, opinion-based value estimate. On our network, underwriting looks at both the as-is value and the after-repair value, and the loan is bound by whichever produces the lower amount.
Inspection. Lenders generally inspect the work before releasing renovation funds, and some check the property before closing too.
Title and insurance. A title company searches the property history, and the lender wants evidence of insurance. Both are clerical, but neither is instant, and a clouded title can stall an otherwise clean file.
Underwriter judgment. A person reads the scope, the comps, and your exit plan. If the budget looks thin or the comps look stretched, the file gets questions rather than a green light.
Closing signatures and fund transfers can sometimes go remote, depending on the title company and the state. Don’t assume a fully remote close without asking.
What the Lender Is Actually Underwriting
The lender underwrites the deal first, the borrower second, and the exit third. Personal income is not the main driver. Lenders still look at credit and experience.
The deal. Purchase price, scope of work, and projected after-repair value (ARV), meaning the estimated value once renovations are done. Weak comps or a vague scope hurt here more than anything else.
The borrower. The network generally expects a minimum score of 620, with additional conditions below 660. Lenders also verify liquidity, which means cash you can actually show. Entity documents matter as well, since flips are typically done through an LLC, subject to lender program eligibility.
The exit. The lender wants to know how it gets repaid: a sale or a refinance into long-term financing. A flip that only works under perfect conditions raises flags.
Leverage on the Network
Hard money leverage is measured against cost, not just value. Loan-to-cost means the loan as a percentage of what you pay for the property plus the renovation. The tiers depend on how many projects you have completed.
| Documented completed projects | Loan as % of project cost | Cap |
|---|---|---|
| Fewer than 2 | Up to 85% | 75% of ARV |
| 2 or more | Up to 90% | 75% of ARV |
| 5 or more | Up to 93% | 75% of ARV |
Every tier stops at 75% of ARV, so on a modest-margin deal the ARV cap, not the cost tier, can set the loan size. Bridge purchases without rehab go up to 80% of purchase price. Cash-out and rate-and-term refinances go up to 65% of value. Loans run up to $5,000,000, with larger by exception. Terms run 6 to 18 months, interest-only, with no prepayment penalty. All of this varies by lender, property, and experience, and none of it is a commitment to lend.
A common misreading is that you can borrow against ARV at closing. ARV mostly works as a ceiling. The renovation money arrives in draws.
Can a First-Time Flipper Get Approved Online?
Yes, a first-timer can apply online and qualify, but experience changes the terms more than it changes access. With fewer than two completed projects, you sit at the lowest cost tier. Lendmire’s piece Can a Single-Family Fix-and-Flip Get Approved for Hard Money? goes deeper on that property type.
Run the numbers on a first flip. At the 85% of project cost tier, you fund the remaining 15% yourself, and the 75% of ARV cap can pinch that further if the margin is thin. Up to 100% of the rehab budget is funded in draws, but that is a rehab-budget figure. There is no true 100% purchase program, so any marketing that implies one deserves a second look.
Experience also shapes how an underwriter reads your budget. Lenders tend to look harder at large rehabs from borrowers with no track record.
A Worked Example
Picture an investor with one prior flip, buying a non-owner-occupied single-family house with a moderate rehab. The credit score is above 660, and the investor holds a clean LLC with liquidity on hand.
1. Pre-qualification: online, using the contract price and renovation budget. The tier is 85% of project cost, because the investor has fewer than two completed projects.
2. Valuation: an appraisal or BPO sets as-is and after-repair values. Assume the after-repair value comes back lower than the investor projected.
3. The cap bites: the 75% of ARV ceiling now sits below what the cost tier would have allowed, so the loan shrinks and the investor’s cash share grows.
4. Conditions: insurance evidence, entity documents, and title items clear through the portal.
5. Closing and draws: the initial advance covers the purchase, and the rehab holdback is released as each phase passes inspection.
6. Exit: the investor sells, or refinances into long-term financing.
The lesson is that the pre-qualification and the final loan can differ, because the valuation step can move the numbers. Build in room before you sign a contract.
Why Online Applications Stall or Get Declined
Most stalls come from the file, not the technology. These are the usual culprits.
| Reason | What it looks like | Fix |
|---|---|---|
| Weak comps | ARV looks stretched | Use closer, more recent sales |
| Vague scope | Lump-sum budget, no line items | Itemize and add contingency |
| Thin liquidity | Cash can’t cover the gap and early draws | Show verifiable funds |
| Entity mismatch | Names differ across documents | Align contract, entity, and insurance |
| Title problem | Liens or ownership gaps | Resolve before applying |
| Unrealistic exit | Flip works only at the top of the range | Rework price or scope |
Liquidity deserves extra attention. A flip loan is not self-funding at the start. The contractor works, you pay, the lender inspects, and then it reimburses you. That cash gap is real, so plan for the first phase plus a buffer.
Scope changes cause trouble too. If an inspector finds repairs that were not in the original scope, the next draw may not cover them. A contingency line in the budget protects you.
If you get declined or countered, ask which condition drove it. A counteroffer at a lower tier often means the valuation or experience, not a dead deal.
How to Vet an Online Lender
Anyone can build a slick application page. Check what is behind it.
Direct lender, broker, or lead form? A direct lender funds the loan. A broker, like Lendmire arranges financing through select lenders in a wholesale network covering 41 markets, including Washington, D.C. A lead-generation form collects your details and sells them. Ask which one you are talking to.
Red flags:
- Promises of approval before anyone has seen the property, since approval is typically subject to lender guidelines and a review of the property.
- Fees demanded before a valuation is ordered.
- Offers of proof-of-funds letters for a charge.
- No questions about the scope, the entity, or the exit.
- Vague answers on whether the quote stage involves a soft or hard credit pull.
Compare the full cost. Application, admin, underwriting, origination, draw, and inspection fees all add to the total. So does interest on funds that have been advanced. Ask for every fee in writing and compare structures, not only headline terms.
Check the footprint. Flip programs are not offered in every market, so confirm the property’s location is eligible before you spend time on paperwork.
Does Business Purpose Mean No Rules?
No. Flip loans are business-purpose loans, which are treated differently from standard owner-occupied mortgages. The CFPB’s Regulation Z summary lists credit extended primarily for a business purpose as exempt from those consumer rules. It also treats credit to acquire or improve non-owner-occupied rental property as business purpose.
That exemption has a flip side. A law-firm paper from Hunton makes the point that business purpose does not mean compliance-exempt. Other laws can still apply, and calling a loan business-purpose when it is really a consumer loan carries serious risk. For you, the practical takeaway is simple: use these loans for investment properties you will not live in, and keep your paperwork consistent with that.
Key Terms Defined
ARV (after-repair value): the estimated market value of the property once renovations are complete.
Loan-to-cost: the loan amount as a percentage of the purchase price plus the renovation budget.
Draw: a release of renovation funds after a phase of work has passed inspection.
Holdback: the portion of the loan set aside for rehab and paid out in draws, not at closing.
Scope of work (SOW): the line-by-line list of repairs and their costs.
BPO (broker price opinion): a value estimate from a real estate professional, lighter than a full appraisal.
Pre-qualification: an early read on terms based on information you supply, not a final approval.
After Approval: Draws and the Exit
Once you close, the loan works in two parts. The initial advance covers most of the purchase. The rehab holdback pays out in draws as phases pass inspection. You request a draw, the lender inspects, and then it reimburses.
Keep photos and receipts organized, since clean paperwork helps draws move smoothly. Tax treatment varies by situation; consult a qualified professional.
Then comes the exit. Many investors who decide to keep the property refinance out of hard money into long-term rental financing once it is stabilized, and Lendmire arranges that path too. Credit and experience can affect that refinance even when they didn’t affect the flip. Lendmire’s complete DSCR loans guide explains how that long-term loan is evaluated, and it is worth reading before you close on the flip.
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.
Frequently Asked Questions
Do I need a property under contract before I apply?
Not always. You can often get pre-qualified online with a target deal and your numbers. Final underwriting needs a signed purchase contract, a budget, and a valuation, so the file only becomes real once the property is identified.
Is there a hard credit pull?
It depends on the lender and the stage. Some pre-qualifications use a soft check, and full underwriting generally involves a credit review. Ask directly before you submit your information. The network generally looks for a 620 minimum, with extra conditions below 660.
Do I need an LLC?
Most flip lenders expect you to borrow through an entity, subject to lender program eligibility. Entity documents are often a late-stage condition, so set the LLC up before you apply. Names should match across the contract, the entity, and the insurance.
Can I close fully remotely?
Sometimes, but it varies. Intake, signatures on many documents, and fund transfers can happen without a trip. The valuation, inspection, and title steps still involve third parties, and some title companies require an in-person or notary step.
What if I’m denied or countered?
Ask which condition caused it. Common causes are a valuation below your projection, thin liquidity, a vague scope, or title problems. Fixing the file or adjusting the structure, such as a lower tier or a smaller rehab, can change the outcome. Each file is underwritten individually, and nothing here is a commitment to lend.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., places hard money and DSCR loans through wholesale investor lenders and is not a direct lender. DSCR scenarios are commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. Lendmire is a Scotsman Guide Top Mortgage Workplace in 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. CFPB – Truth in Lending Act summary
2. Hunton – Beware of Business Purpose
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 Replace Seller Financing With a Hard Money Loan on a First Flip · How a Hard Money Lender Counts Seasoning on a Flip · How Much a Hard Money Lender Will Lend on a Fix-and-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
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.