Available 100% financing (no money down) on qualifying fix and flip/hold projects in select US markets

Fix and Flip Financing - example deal numbers for no money down

What does an example 100% fix and flip financing deal look like?

Depending on the state, a fix and flip loan may range anywhere from $50,000 to over a couple million dollars.

However, in general, most purchase and rehab projects are going to fall into the $100-200k purchase price range, as this is a common price level for older housing in need of repair in most of the country. It's also sufficient to meet minimum loan amounts which are typically $100,000 and up.

Deal numbers on an average project in a state like Ohio:

Purchase price (as-is value): $120,000

Rehab cost: $40,000

ARV (After-repair value): $220,000

How does a no money down fix and flip loan get calculated with these numbers?

Max loan is 75% of ARV (hold strategy) = $165,000

Total cost = $160,000, and will be 100% covered in this scenario

What does it take to close a loan like like this if 100% of costs are covered? Besides an appraisal for $500-600 early in the process, it would only require closing costs at ~5% of the loan amount. In this case, this would amount to ~$8000. This will include things like origination fees, document/underwriting fees, title/escrow fees, and insurance coverage.

Be aware that the typical fix and flip loan is interest-only during the term. With a typical yearly interest rate of 11-13%, you can estimate it at 1% per month. In this scenario, it would be about $1200/month at the start of the loan, and grow towards $1600/month as you take rehab draws and increase your outstanding loan balance.

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