The Quick Read: Usually, yes: lenders in Lendmire’s wholesale network size these loans below the full price or project cost, so you cover the gap with cash, equity, or both, and the exact share varies by lender, property, and your track record on completed projects, because there is no true 100% purchase program.
- Purchase with no rehab: loans go up to 80% of the purchase price, so plan on at least 20% of the price in cash or equity, plus costs.
- Purchase with rehab: leverage is measured against project cost and tied to your completed projects, and every tier is capped at 75% of after-repair value.
- Refinance: loans go up to 65% of value, so equity matters more than cash.
- Cash to close: the down payment is only one line. Closing costs, lender charges, and reserves for interest-only carry come on top.
Every figure here varies by lender, property, and experience, and none of it is 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.
Key Terms Defined
Hard money bridge loan: a short-term, asset-based loan that carries an investor from purchase or rehab to a sale or longer-term refinance.
Loan-to-cost (LTC): the loan amount divided by what the project costs, meaning the purchase price plus the rehab budget.
After-repair value (ARV): the estimated value of the property once the planned work is finished.
Loan-to-value (LTV): the loan amount divided by the property’s value.
Draw: a release of rehab money after the lender confirms that a stage of work is complete.
Cross-collateral: pledging a second property you already own, alongside the one you are buying, to support the loan.
DSCR (debt service coverage ratio): monthly rent divided by the full monthly housing obligation, which is how long-term rental loans are judged.
What a Hard Money Bridge Loan on a 2-4 Unit Actually Is
This is a business-purpose loan on a duplex, triplex, or fourplex that you do not plan to live in. The lender looks at the property, your plan, and your exit. It does not underwrite on rent coverage the way a DSCR loan does.
Terms usually run 6 to 18 months, interest-only, with no prepayment penalty. Loan sizes go up to $5,000,000, and larger by exception. Credit matters less than on a long-term loan, but a 620 minimum score is typical, with extra conditions below 660. First-time investors qualify at the lower leverage tiers.
The words trip people up. A hard money bridge loan is a short-term, asset-based loan for investors.
It is not the consumer product that lets a homeowner buy before selling. It is also not an FHA or owner-occupied loan with a low down payment.
Why Do Lenders Want Cash or Equity in the Deal?
The lender owns the risk if your plan stalls. Your cash in the deal is the cushion that protects the loan. If the value comes in light, or the rehab runs long, your money takes the first loss.
It also signals commitment. A borrower with real money at stake tends to finish the project and execute the exit. That is why experience and liquidity move the number more than almost anything else.
In practice, the more completed projects you can document, the less cash you bring. A first-time investor brings more. That is a risk adjustment, not a penalty.
How Is the Down Payment Calculated?
The down payment is the gap between what the lender will advance and what the project costs. The lender runs two tests and uses the lower result.
1. The cost test. The loan is a percentage of the purchase price, or of purchase plus rehab on a renovation.
2. The value test. On rehab deals, the loan cannot exceed 75% of the after-repair value.
Say a first-time investor buys a triplex that needs work. The cost tier for fewer than two completed projects is 85% of project cost. That leaves at least 15% of project cost for you before fees.
Now look at the value test. If the after-repair value is only about 1.2 times the project cost, 75% of that value equals 90% of cost. A seasoned investor in the 93% tier would be cut back to 90%. The value cap wins whenever the numbers say so.
This is why the answer is rarely a flat percentage. A deeply discounted purchase with strong after-repair value leaves the cost test as the binding one. A thin-margin deal leaves the value test binding, and your cash requirement rises.
What Do the Scenarios Look Like Side by Side?
The table shows the structure, not a quote. Every figure varies by lender, property, and experience.
| Scenario | What sizes the loan | Your minimum share |
|---|---|---|
| Purchase, no rehab | Up to 80% of price | At least 20% of price |
| Purchase plus rehab, fewer than 2 projects | 85% of project cost, 75% ARV cap | At least 15% of cost |
| Purchase plus rehab, 2+ projects | 90% of project cost, 75% ARV cap | At least 10% of cost |
| Purchase plus rehab, 5+ projects | 93% of project cost, 75% ARV cap | At least 7% of cost |
| Refinance | Up to 65% of value | At least 35% equity |
Read the rehab rows carefully. Up to 100% of the rehab budget is released in draws against completed work. That describes how rehab money is paid out, not how much of the purchase is financed.
The draw schedule matters in practice. Funds are held back and released after inspection. Many investors start the work with their own money and get reimbursed. Your liquidity has to cover that gap.
What Does Total Cash to Close Include?
Cash to close is larger than the down payment. Plan for these separate lines:
- The down payment: the gap the loan does not cover.
- Closing costs: title, recording, and similar charges.
- Lender charges and the appraisal: the lender typically orders an appraisal at your expense.
- Rehab float: rehab spending you front before a draw reimburses you.
- Carry reserves: months of interest-only payments, plus taxes and insurance, while the property is vacant or under renovation.
The title company prepares the settlement statement and tells you how much to bring, usually by wire or cashier’s check. Ask for that number early. A down payment that looks manageable can grow once the other lines are added.
One practitioner point from placing these files across a wholesale network: borrowers underestimate carry far more often than they underestimate the down payment. A vacant fourplex carries four units of expenses and no income. Hold reserves for that, and treat the lender’s liquidity review as a favor rather than a hurdle. Tax treatment varies, so consult a qualified professional.
Can Equity in Another Property Replace Cash?
Sometimes. Some lenders may count equity in a property you already own toward your up-front share, usually through cross-collateral. You pledge the second property, and the lender gets additional security.
The documents are heavier. Expect a second appraisal or valuation, title work on both properties, and a lien recorded on each. The risk is also heavier. If the exit fails, you have put two properties behind one short-term loan.
Other structures sometimes fill the gap, such as seller financing or a second-position gap lender. Each depends on the lender’s rules and on the deal. Ask the question before you submit the file, not after the term sheet arrives.
Is There a True 100% Purchase Program?
No. Bridge purchases without rehab go up to 80% of the purchase price. Rehab loans are sized on project cost and capped at 75% of after-repair value. Nothing in the network funds the whole purchase price.
Some investors report very little cash at closing, and that comes from the deal itself. The usual pattern is a deeply discounted purchase. If you buy far below after-repair value, the cost test and the value test leave a smaller gap for you to cover. The price was low enough that the math shrank the gap, and the lender’s leverage limits never changed.
Be wary of offers advertising no money down. Lenders that skip the equity cushion often make up for it elsewhere, in thin approvals and hard terms. The strongest hard money files show real skin in the game.
What Changes the Requirement?
| Factor | Effect on cash needed |
|---|---|
| More completed projects | Lowers it, through the higher cost tiers |
| First-time investor | Raises it, lower leverage tiers apply |
| Strong ARV versus cost | Keeps the cost test binding, lowers it |
| Thin margin on ARV | Raises it, because the 75% ARV cap binds |
| Refinance instead of purchase | Raises it, loans run up to 65% of value |
| Credit under 660 | Can add conditions that raise it |
| Weak or unclear exit | Raises it, or ends the deal |
Entity type, such as an LLC borrower, is subject to lender program eligibility. Occupancy is fixed: the property must be non-owner-occupied.
What Changes on a Duplex, Triplex, or Fourplex?
Two to four units sit in a useful middle ground. Hard money covers one-to-four-unit residential property, so a fourplex is financed the same way as a single-family home, not as a commercial building. Five or more units, mixed use, and commercial property are outside this program.
Occupancy matters to the paperwork. Loans on non-owner-occupied rental property are generally treated as business purpose. That classification separates these loans from consumer mortgages, and it is why you cannot use one to live in a unit.
Rent plays a smaller role than most people expect. A bridge is sized on the asset, the plan, and the exit. A vacant or transitional unit does not break the loan, though it increases your carry. Existing leases matter more later, when you refinance.
Property type matters for the exit. DSCR financing is not offered on manufactured homes, log homes, or barndominiums. If you buy one with a bridge, you cannot count on a DSCR refinance to take you out.
How Should You Plan the Exit Before You Borrow?
Plan the exit backward from the bridge. Many investors refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. Your down payment decides whether that refinance works.
Run the arithmetic on a purchase bridge at 80% of price. A cash-out refinance across most of the network tops out around 75% LTV on standard rentals, and about 6 months of seasoning is the common expectation. To repay an 80% bridge at a 75% ceiling, the property has to appraise at roughly 107% of the purchase price, before closing costs. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
That is why a high-leverage bridge needs real value creation. A small down payment and no uplift can leave you short at the refinance. A larger down payment gives you room.
Rent still has to cover the payment on the other side. For many long-term rental programs, 1.00 coverage is where select programs start, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Remember that DSCR compares rent to the monthly housing payment only. Clearing it is not the same as positive cash flow, because repairs, vacancy, management, and utilities sit outside the calculation.
If you plan to hold the property as a rental, see how DSCR down payment requirements work on a 2-4 unit vacation rental in Lendmire’s piece on DSCR down payment requirements for 2-4 unit vacation rentals. For higher-priced assets, Lendmire’s walkthrough of jumbo loan down payment rules on a 2-4 unit property covers the long-term side. The complete DSCR loans guide explains how the refinance is underwritten.
What Should You Prepare Before Applying?
- Project documents: property details, scope of repairs, comparable sales, and your ARV estimate.
- Completed-project history: this sets your leverage tier.
- Proof of funds: liquid cash for the down payment, closing costs, and reserves.
- Rehab plan: how you will front costs between draws.
- Exit plan: sale price target, or the DSCR refinance and the value it needs.
- Credit and entity details: your score and how you will hold title.
A lender letter showing that financing is lined up also helps on auction and market-rate-bid purchases.
Frequently Asked Questions
Can I buy a duplex with a hard money bridge loan and put nothing down?
Rarely. It can happen when the purchase is far below after-repair value, but no standard program finances the full purchase price. Plan on bringing cash or equity, and treat any offer of no money down with caution.
Does a fourplex need a bigger down payment than a duplex?
Not by unit count alone. Both are one-to-four-unit residential, and the leverage tiers are the same. What moves the number is the lender’s view of the property, your experience, and the after-repair value.
Does the down payment cover closing costs too?
No. The down payment is the gap between the loan and the purchase price or project cost. Closing costs, the appraisal, and lender charges are paid in addition to it.
Do my credit score and income matter?
A score of 620 is typically the minimum, with extra conditions below 660. Underwriting stays asset-based, so the property, the plan, and the exit carry the most weight. Personal income matters less than it does on a home mortgage.
Can a hard money bridge help me get into a DSCR loan later?
Yes, that is a common path. You buy and improve with the bridge, then refinance into long-term rental financing once the property is stabilized. The refinance has to repay the bridge, so your down payment and the finished value both matter.
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. The platform covers 41 markets, including Washington, D.C., and you can reach the team at 828-256-2183. Every file is reviewed individually, and nothing here is a commitment to lend.
A bridge loan is judged by what comes after it, so the investor who sizes the down payment around the refinance, not just the purchase, tends to finish the deal with room to spare.
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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.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage focused on DSCR investor financing, helping arrange programs through wholesale and investor-lending channels in 41 markets, including Washington, D.C. DSCR loans are evaluated by the lender on property cash flow rather than personal income, subject to lender guidelines, supporting LLC closings and accommodating investors with four or more financed properties. Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Is a Bridge Loan Different From Hard Money for Investors? · Can a Business Owner Get a Larger Hard Money Bridge Loan? · Can a Single-Family Hard Money Bridge Loan Exit Into a DSCR Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- 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.