100% Fix and Flip Financing
Preserve more capital for your next investment opportunity. Qualified real estate investors may be eligible for financing covering up to 100% of the purchase price and eligible renovation costs—subject to experience, leverage limits, valuation, underwriting, and approval.
Funding Built for the Full Project
Finance the acquisition and renovation of a residential investment property through one business-purpose loan structure.
Qualified investors may be eligible for financing covering up to 100% of the purchase price and eligible renovation costs, provided the total loan remains within applicable after-repair value, leverage and underwriting limits.
- Preserve capital for reserves and future opportunities
- Finance eligible renovation costs through construction draws
- Use one loan for acquisition and improvements
- Access financing designed for non-owner-occupied properties
Up to 100% LTC*
Financing may include the purchase price and eligible renovation costs.
Up to 75% ARV*
Maximum leverage is subject to the property’s projected after-repair value.
Business Purpose
Available for eligible non-owner-occupied residential investment properties.
Draw-Based Funding
Approved renovation funds are generally released as work is completed.
What Does 100% Financing Actually Mean?
In fix-and-flip lending, “100% financing” generally refers to financing up to 100% of eligible project costs—not an unconditional no-money-down loan.
Depending on the program and transaction, eligible project costs may include:
- The property purchase price
- Approved renovation and construction expenses
- Eligible labor and material costs included in the project budget
The final loan amount is still limited by the property’s value, projected after-repair value, borrower qualifications and applicable program guidelines.
100% financed does not always mean $0 out of pocket.
Borrowers may still need funds for closing costs, interest, reserves, appraisal and inspection fees, title charges, insurance, deposits, initial project expenses or costs that exceed the approved budget.
Actual cash requirements are determined after the transaction and borrower profile are reviewed.
Who May Qualify?
Maximum leverage is generally reserved for stronger borrowers and well-supported transactions. Approval is based on the complete deal—not one qualification alone.
Investor Experience
Documented experience completing similar real estate investment projects may support higher leverage.
Credit Profile
Credit history and score help determine eligibility, pricing and the maximum financing available.
Liquidity and Reserves
Borrowers may need sufficient verified funds for closing requirements, reserves and project contingencies.
Property and Market
The property type, location, condition, demand and marketability are considered during review.
Renovation Plan
A detailed, realistic scope of work and budget are essential to evaluating the complete project.
Exit Strategy
The proposed sale or refinance strategy must be reasonable and supported by the transaction.
How the Financing Could Be Structured
Assume an experienced investor is purchasing a property for $180,000 and expects to complete $45,000 in eligible renovations.
The total project cost is $225,000. If the transaction qualifies for 100% of eligible cost, the financing could include the $180,000 purchase price and the $45,000 approved renovation budget.
However, the loan must also remain within the program’s permitted after-repair value and other leverage limits.
Why ARV still matters
If the projected after-repair value does not support the requested loan amount, the borrower may need to reduce the loan, renegotiate the purchase price or contribute additional funds.
Example Project
This example is for illustration only and does not represent a loan approval, commitment to lend or terms available for a particular borrower or property.
How Construction Draws Work
Renovation funds are generally held in a controlled account and released during the project rather than paid entirely at closing.
Budget Approved
The renovation scope, budget and eligible project costs are reviewed before closing.
Work Completed
The borrower completes an approved portion of the renovation work.
Draw Requested
The borrower submits a draw request with the required documentation.
Funds Released
After the completed work is verified, eligible funds are released according to the draw process.
What Might the Borrower Still Pay?
Even when eligible purchase and renovation costs are fully financed, additional funds may be required to close and successfully complete the project.
Closing Costs and Fees
Title, legal, appraisal, inspection, recording, origination and other transaction charges may not be included in the financed project costs.
Interest and Reserves
Interest payments, prepaid interest and required liquidity or payment reserves may remain the borrower’s responsibility.
Insurance and Taxes
Property insurance, builder’s risk coverage, taxes and other required items may be due before or at closing.
Initial Draw Expenses
Because renovation funds are commonly reimbursed after completed work is verified, borrowers may need capital to begin construction.
Budget Overruns
Unapproved changes, cost increases and expenses exceeding the approved renovation budget may require additional borrower funds.
Earnest Money Deposit
The borrower may need to provide an earnest money or contract deposit before the loan closes.
Information Needed for a Preliminary Review
Complete information allows Borrowers Capital to assess the transaction more efficiently and identify an appropriate financing structure.
- Property address and purchase price
- Executed purchase contract, if available
- Estimated current value and projected ARV
- Detailed renovation scope and budget
- Requested loan amount
- Borrower credit estimate
- Available liquidity and reserves
- Real estate investment experience
- Ownership entity information
- Planned exit strategy and project timeline
A strong submission starts with realistic numbers.
Provide a complete renovation budget, supportable after-repair value and honest estimate of available funds.
A clear scenario is easier to evaluate than a request built around the maximum advertised leverage alone.
100% Fix-and-Flip Financing FAQs
Does 100% financing mean I need no money to close?
No. It may refer to financing up to 100% of eligible purchase and renovation costs. Borrowers may still need funds for closing costs, reserves, interest, insurance, deposits, initial construction expenses and other requirements.
Can a first-time investor qualify for 100% financing?
Maximum financing is generally more difficult for a first-time investor to obtain. Eligibility depends on the complete borrower and transaction profile, including credit, liquidity, property characteristics, project feasibility and applicable program requirements.
Are renovation funds provided at closing?
Renovation funds are generally held back and released through a draw process as approved work is completed and verified.
What properties may be eligible?
Eligible property types vary by program but may include non-owner-occupied one- to four-unit residential properties intended for renovation and resale or refinance. Property condition, location, value and project scope are reviewed.
Can I use this financing for my primary residence?
No. Fix-and-flip financing is intended for business-purpose investment transactions and is not consumer financing for an owner-occupied primary residence.
How is the after-repair value determined?
The projected after-repair value is generally supported by an appraisal or other approved valuation that considers the proposed renovation and relevant comparable properties.
What happens if the renovation budget increases?
Costs exceeding the approved budget may become the borrower’s responsibility unless a change is reviewed and approved under the applicable loan and draw requirements.
How quickly can a deal be reviewed?
A preliminary review can begin after the key property, borrower and renovation information is received. Final timing depends on documentation, valuation, title, insurance, underwriting and other transaction requirements.
See What Your Fix-and-Flip Deal May Qualify For
Submit the property, purchase price, renovation budget and borrower information for a preliminary financing review.