Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
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.
The Quick Read: No law sets a minimum loan amount for a hard money fix and flip loan. Each lender sets its own floor based on what a file earns it, so the practical test is total loan size: the purchase advance plus the rehab funding. Very small projects are often declined or carry extra fees. Whether your deal clears depends on the lender, the property, and your experience.
- The floor is a lender choice, not a regulation, and it varies widely from one lender to the next.
- The test usually applies to the whole loan (purchase plus rehab), not the purchase price alone.
- Across Lendmire’s wholesale network, hard money loans run up to $5,000,000, larger by exception, and smaller balances vary by lender.
- A cheap house with a light rehab is the deal most likely to fall under a floor, even at full leverage.
- The same size test shows up a second time if you plan to refinance into long-term rental financing.
How Does a Hard Money Fix and Flip Loan Set Its Size?
The loan amount is the lesser of two caps: a share of project cost and a share of the property’s after-repair value (ARV). The minimum floor is then checked against that result, which is why the purchase price alone never tells you whether a deal is big enough.
The property is the underwriting focus. A market source’s fix-and-flip explainer shows how the ARV cap works: at 70% of ARV, a lender would cap the loan at $140,000 on a home worth $200,000 after repairs. Programs differ on that percentage, but the logic is the same everywhere.
Here is how the pieces fit on the programs Lendmire brokers. These figures are typical, subject to lender guidelines, and vary by lender, property, and experience:
- Fix-and-flip leverage runs on loan-to-cost, tiered by documented completed projects. That is typically 85% of project cost with fewer than two completed projects, 90% at two or more, and 93% at five or more. Every tier is capped at 75% of ARV.
- Rehab money can fund up to 100% of the rehab budget. It is released in draws against completed work, so it is a budget figure, never a purchase leverage figure.
- Bridge purchases without rehab go up to 80% of the purchase price.
- Refinances (cash-out and rate/term) go up to 65% of value.
When costs sit below the ARV cap, the loan simply equals the leverage share of costs. A small purchase plus a small rehab produces a small loan, and that is where floors bite.
Why Do Lenders Set a Minimum at All?
Lenders set floors because most of their work on a file costs the same whether the loan is large or small. Origination fees scale with loan size, but the appraisal, title work, inspections, and draw administration do not. A very small balance can lose money after those costs.
Most programs respond to a small file in one of three ways: they decline it, they add a flat minimum fee, or they adjust pricing to cover the fixed costs. The practical effect on you is fee drag. Flat charges consume a larger share of a small loan’s proceeds than of a large one.
That is also why floors differ by lender type. A private lender funding its own capital can flex more than a lender selling loans into a larger capital pool. Across a wholesale network, you see the whole spread, from lenders that welcome small balances at adjusted terms to lenders that set a higher floor and stay there.
What Do Published Floors Look Like Versus This Network?
Published lender program pages list fix-and-flip floors anywhere from $50,000 at Ridge Street Capital to $150,000 at Stormfield Capital, with many in between. That spread is the honest market answer: commonly $50,000 to $150,000, varying by lender.
Lendmire’s network is different, and the two should not be mixed. The table below shows the network’s program parameters only.
| Factor | Typical network parameter |
|---|---|
| Maximum loan | Up to $5,000,000, larger by exception |
| Smaller balances | Vary by lender |
| Term | 6-18 months, interest-only |
| Prepayment penalty | None on the program |
| Credit score | 620 minimum, added conditions below 660 |
| Property type | Non-owner-occupied, 1-4 units |
Notice what the table does not say: a single universal minimum. Smaller balances vary by lender, which means the right move on a small deal is to have the file placed with a lender whose appetite fits it, not to assume one floor applies everywhere. Nothing here is a commitment to lend, and every file is reviewed individually.
Three Scenarios: Below, Near, and Above the Floor
Scenario sizing is easiest to see qualitatively. These are illustrative, not quotes.
| Scenario | Purchase | Rehab | Likely outcome |
|---|---|---|---|
| A: Cosmetic flip | Very low | Light | Often under a lender’s floor |
| B: Standard flip | Mid-range | Moderate | Usually clears most floors |
| C: Heavy rehab | Low | Heavy | May clear on total loan size |
Scenario A is a real flip that most lenders will not want. Even at the highest leverage tier, the total loan stays small, and the fixed cost per file is the same as on a bigger deal. A lender that does take it may add a flat fee or adjust pricing.
Scenario B is where the program is designed to work. The loan is large enough to cover the lender’s fixed costs, and the ARV cap is supported by sold comparables.
Scenario C is the case investors overlook. A small purchase with a large rehab budget can produce a total loan that clears the floor, because the rehab advance counts toward loan size. The catch: lenders generally do not want the rehab share to dwarf the property’s value, and the 75% of ARV cap still applies. If the finished value does not support the total, the loan shrinks regardless of how much work you plan.
Where the General Rule Breaks
The floor is a general rule, and several situations bend it.
Low-cost properties. A first-time investor on a cheap house must also budget cash for title fees, taxes, insurance, and closing costs on top of the down payment. At the 85% tier, that means 15% of project cost out of pocket, before those extras. Small deals tend to look cheaper than they are.
Experience tiers. Leverage moves with documented completed projects, but the minimum loan amount is a separate test. Experience raises how much of the cost a lender funds. It does not necessarily lower the floor. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Minimum interest periods. Some lenders charge a minimum interest period even if you sell early. The program Lendmire brokers carries no prepayment penalty, but a flip that pays off in two months still deserves a careful read of the loan terms. Terms run 6 to 18 months, interest-only.
Short runway. There are no multi-year structures on this program. If your plan needs longer than 18 months, plan a refinance rather than hoping for an extension.
Business-purpose rule. Hard money fix and flip loans are written as business-purpose loans on non-owner-occupied investment property, which is a different category from a standard owner-occupied mortgage. The CFPB’s Truth in Lending guide explains the exemption for credit extended primarily for business purposes. That distinction is why these loans are underwritten on the property, the plan, and the exit rather than on personal income.
Unavailable collateral. The program covers 1-4 unit residential, with ground-up construction up to 10 units. Commercial, industrial, land, and owner-occupied properties are not offered.
What Can You Do When a Deal Falls Under the Floor?
You have five practical options, and which one fits depends on the deal.
1. Expand the scope. If the house supports a bigger renovation and the ARV cap holds, a larger rehab budget lifts the total loan. Do this only when comparable sold properties support the higher finished value.
2. Bundle projects. Some lenders will review two or more small properties together under one relationship. This works best with a track record.
3. Pay cash, then refinance. A cash purchase followed by a refinance (up to 65% of value on this program) turns a sub-floor purchase into a normal-sized refinance. The tradeoff is tied-up capital and a lower leverage cap.
4. Look for a lender with a smaller-balance appetite. Because smaller balances vary by lender, a broker comparing several programs may find a lender who fits, with terms adjusted.
5. Pass. Sometimes the honest answer is that the deal is too thin to carry fixed costs. Fee drag can erase the margin on a small flip before you swing a hammer.
The Second Floor: Your Exit Financing
Many flips end with a sale. Others, including buy-rehab-rent plans, end with a refinance. If you plan to hold the property, the permanent loan has its own size test. DSCR loans across Lendmire’s wholesale network typically reach up to $3,000,000 on standard programs (smaller balances available through select lenders), subject to lender guidelines.
That creates a planning check most investors skip. Test the total cost basis at both stages. A project that clears the bridge floor can still land below the long-term floor, or the reverse. Once the property is stabilized and rented, many investors refinance out of hard money into long-term DSCR financing, and Lendmire brokers that path. You can read the full mechanics in the complete DSCR loans guide.
One caution: clearing a DSCR coverage ratio compares rent to the full monthly obligation only. It is not the same as positive cash flow, because repairs, vacancy, management, and utilities sit outside the calculation.
Key Terms Defined
After-repair value (ARV): The property’s estimated market value once renovations are complete, usually supported by recently sold comparable homes.
Loan-to-cost (LTC): The share of total project cost, purchase plus rehab, that the lender funds.
Draw: A staged release of rehab funds after completed work is verified, rather than one lump sum at funding.
Bridge loan: Short-term, collateral-backed financing that carries a borrower until a sale or permanent financing.
Holdback: Rehab money the lender holds back and releases in draws, which keeps renovation funds tied to the renovation.
Fee drag: The way flat per-file costs take a larger share of a small loan’s proceeds than of a large one.
Is My Deal Big Enough? A Quick Checklist
- Add the purchase price and full rehab budget to get total project cost.
- Apply the leverage tier you honestly qualify for: 85% of cost with fewer than two completed projects, 90% at two or more, 93% at five or more.
- Check that the result stays at or under 75% of a comp-supported ARV.
- Ask each lender for its stated minimum, any flat minimum fee, and any minimum interest period.
- Confirm the credit score: a 620 minimum with added conditions below 660.
- Confirm the property is 1-4 units, non-owner-occupied.
- Budget cash for closing costs and holdback timing, not just the down payment.
- Test the same cost basis against your refinance floor if you plan to hold.
Treat any figure here as a typical range, not a promise. Lendmire’s network parameters vary by lender, property, and experience, and programs change.
Frequently Asked Questions
What is the minimum loan amount for a hard money fix and flip loan?
There is no single national number. Published lender programs list floors from roughly $50,000 to $150,000, depending on the lender. In Lendmire’s network, loans run up to $5,000,000, and smaller balances vary by lender. The only reliable answer comes from testing your specific deal against lenders.
Does the minimum include the rehab budget?
Usually yes. The floor is tested against total loan size, which combines the purchase advance and the rehab funding. That is why a modest purchase with a substantial renovation can clear a floor that a cosmetic flip on the same house would not.
Can I borrow less than a lender’s stated minimum?
Generally not on that lender’s program, though some lenders make exceptions with adjusted terms or fees. A more practical route is to ask a broker to compare programs for a lender whose smaller-balance appetite fits, or to restructure the deal using the options above.
Is a hard money loan the same as a fix-and-flip loan?
They overlap but are not identical. Hard money describes short-term, asset-based private financing in general. A fix-and-flip loan is a version built around purchase plus renovation, with draws and an ARV cap. Many investors use the terms interchangeably.
Do hard money minimums match DSCR loan minimums?
No. They are separate products with separate floors and separate underwriting. Hard money looks at the property, the plan, and the exit. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Check both floors if you plan to flip and then hold.
Next Steps
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. Reach the team at 828-256-2183 or request a quote. Lendmire is a broker arranging financing through select lenders across 41 markets, including Washington, D.C. Nothing here is a commitment to lend, and tax treatment varies, so consult a qualified professional.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 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. Ridge Street Capital: Fix and Flip Loans
2. Stormfield Capital: Fix and Flip Loan Program
3. CFPB: Truth in Lending Act Guide
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Hard Money Loan Terms and Extension Rules for a Fix-and-Flip · Small Balance Hard Money Loan Requirements for Fix and Flip Investors · Does a Hard Money Fix-and-Flip Loan Need Full Documentation?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.