“Fix-and-flip loan with no down payment” is the most marketed and most misunderstood lending product. The truth: 100% loan-to-cost (LTC) is real for experienced investors; 100% loan-to-value (LTV) is not real anywhere. What's real: hard money / private money fix-and-flip lenders fund 100% of purchase price + 100% of rehab budget when the total loan amount stays at or below 70–75% of ARV (after-repair value). So if you buy a $200K property and budget $50K in rehab for an ARV of $350K, lender will fund 100% of the $250K total cost — that loan is 71% of $350K ARV, which fits lender LTV caps. What's not real: 100% LTV. No lender funds $245K against a $350K ARV with no equity cushion. Borrower cash required even at 100% LTC: closing costs (~$5K–$15K), 6-month interest reserves (~$10K–$25K), insurance + permits + reserves — realistic total $20K–$50K cash at close. Qualifying: experienced flipper (3+ prior flips), 680+ FICO, sufficient liquidity outside the deal. First-time flippers typically need 10–20% borrower equity. For broader product overview see fix-and-flip.
“No down payment fix-and-flip loans” is one of the most-searched and most-misrepresented queries in real estate investing. Marketing material implies a single loan covering everything with no cash out of pocket. Reality is more nuanced: 100% LTC is real and common for the right investor; 100% LTV is marketing fiction; and even at 100% LTC, borrower cash for closing costs and reserves is required. This page walks the real mechanics, what qualifies, and what to watch for. For broader product overview see fix-and-flip.
LTC vs LTV: The Critical Distinction
Two different ratios that fix-and-flip lenders use:
- LTC (Loan-to-Cost): Loan amount ÷ total project cost (purchase + rehab + closing). LTC of 100% means lender funds 100% of cost.
- LTV (Loan-to-Value): Loan amount ÷ ARV (after-repair value). LTV of 75% means loan is 75% of what the property will be worth after rehab.
Lenders cap BOTH ratios. A typical fix-and-flip lender sizes loan as the lesser of: (a) 100% LTC, or (b) 70–75% LTV. The binding ratio depends on the deal.
Example: When 100% LTC works
- Purchase price: $200K
- Rehab budget: $50K
- Total project cost: $250K
- ARV (after-repair value): $350K
- 100% LTC loan: $250K
- $250K loan ÷ $350K ARV = 71% LTV — fits 70–75% cap
- Result: lender funds 100% of cost; borrower brings closing + reserves only
Example: When 100% LTC doesn't work
- Purchase price: $250K
- Rehab budget: $50K
- Total project cost: $300K
- ARV: $370K
- 100% LTC loan would be $300K — but $300K ÷ $370K = 81% LTV, exceeds 70–75% cap
- Lender sizes to 75% LTV = $277K loan
- Borrower funds the $23K shortfall ($300K cost - $277K loan = $23K equity required)
The deal's LTV ratio (purchase + rehab vs ARV) determines whether 100% LTC is achievable. Tighter deals (purchase price closer to ARV) require borrower equity; better-margin deals (lots of forced appreciation from rehab) allow 100% LTC.
Who Funds 100% LTC Fix-and-Flip
Hard money / private money fix-and-flip lenders are the relevant lender category. Banks, agency, and SBA don't do fix-and-flip. Top 100%-LTC lenders in 2026:
- Kiavi (formerly LendingHome): Largest national fix-and-flip lender. Up to 90–100% LTC for experienced flippers; up to 75% ARV. Online application, fast close (10–14 days).
- RCN Capital: 100% LTC + 100% rehab for qualified investors. Up to 70–75% ARV. National. Quick close.
- Lima One Capital: 90–100% LTC fix-and-flip. Up to 75% ARV. National coverage; strong on multi-property portfolios.
- Anchor Loans: Up to 90% LTC + 100% rehab. Up to 75% ARV. Strong national platform.
- Park Place Finance: Up to 90–100% LTC. Up to 70% ARV. National with regional emphasis.
- Center Street Lending, Dominion Financial, Easy Street Capital, Stratton Equities, Boomerang Capital: Active fix-and-flip lenders with 90–100% LTC options for qualified investors.
- Local hard money lenders: Many markets have specialty regional hard money lenders. Often more flexible on 100% LTC for repeat borrowers in their market.
Qualifying for 100% LTC Fix-and-Flip
100% LTC isn't available to all borrowers. The bar in 2026:
- Experience: 3+ prior successful flips for 100% LTC at most lenders. Some lenders accept 1–2 prior flips with strong supporting profile. First-time flippers typically capped at 80–90% LTC (10–20% borrower equity required).
- Personal credit: 680+ FICO for most 100% LTC programs. Some lenders flex to 660 for very experienced flippers.
- Liquidity (post-close): Lender wants to see 3–6 months of loan payments + rehab contingency in liquid assets outside the deal. On a $250K loan at 11%, that's ~$15K–$25K reserves plus rehab contingency of $5K–$10K.
- ARV cap: The deal must underwrite to 70–75% LTV at total loan amount. If your purchase + rehab is too close to ARV, no lender will fund 100% LTC.
- Property condition + market: Lender wants comparable sales supporting your ARV estimate. Wholly speculative ARVs (no comparable sales) get rejected or sized to conservative ARV.
- Personal guarantee: All borrowers personally guarantee. No way around it on hard money.
- Exit plan: Sale (most common) or refinance to DSCR rental loan if holding as rental. Lender wants clear exit, not vague.
Cash Borrower Still Needs (Even at 100% LTC)
100% LTC means 100% of construction + acquisition cost — it doesn't mean $0 out of pocket. Realistic cash at close on a $250K-cost $350K-ARV deal:
- Closing costs: ~3% of purchase price = $6K on $200K purchase. Title insurance, recording, legal, transfer tax (varies by state).
- Origination points: 2–4 points = $5K–$10K on $250K loan. Some lenders deduct from loan proceeds (so you don't bring cash but get less funded amount); others require at close.
- Interest reserves: 6–12 months held back from loan proceeds, OR borrower-funded at close. On $250K at 11% = $1,375/month interest; 6 months = $8,250.
- Insurance binder: Builders risk + general liability for project. $1K–$3K depending on coverage and project size.
- Permits + utilities turn-on: $500–$3,000 depending on scope.
- Rehab contingency reserve: Lender or sponsor wants 5–15% contingency on top of rehab budget. On $50K rehab, that's $2.5K–$7.5K cash on hand.
- First-month carry: If interest reserves haven't kicked in or if rehab takes longer than reserves cover, sponsor pays from cash.
Realistic total cash at close on a $250K-cost fix-and-flip: $20K–$50K depending on how points and reserves are structured. Less than 20% conventional down payment, but not $0.
Rates, Points, and Terms (May 2026)
- Rate: 9–13% interest-only on fix-and-flip. Stronger investors at lower end (9–10%); newer or higher-LTC at upper end (12–13%).
- Origination points: 2–4 points ($5K–$10K on $250K loan). Sometimes 1 point for repeat borrowers; 4–5 points for first-time flippers or higher-risk deals.
- Exit fee: 0–1% of loan amount at payoff. Some lenders charge; some waive.
- Term: 6–18 months typical (most fix-and-flip projects target 4–12 month hold).
- Extension: 1–2 three-month extensions available at 0.5–1% extension fee per extension.
- Payment structure: Usually interest-only during the loan term, with balloon at payoff (when you sell or refinance).
- Rehab draws: Rehab budget funded in 3–6 draws against completed work, inspected by lender's draw inspector. Sponsor advances first round, then draws as work completes.
Deal Math: 100% LTC Sample Project
Purchase: $200K. Rehab: $50K. ARV: $350K. Hold time: 6 months. 100% LTC loan at 11% + 3 points + 0.5% exit.
| Profile | Max LTC | Max LTV | Rate | Points | Min FICO |
|---|---|---|---|---|---|
| Experienced flipper (3+ prior) | Up to 100% LTC | 70–75% | 9–11% | 2–3 pts | 680+ |
| Newer flipper (1–2 prior) | Up to 85–90% LTC | 70–75% | 10–12% | 2–4 pts | 680+ |
| First-time flipper | Up to 80–90% LTC | 65–70% | 11–13% | 3–5 pts | 700+ ideal |
| First-time + JV partner | Up to 100% LTC (via partner) | 70–75% | 9–11% | 2–3 pts | 680+ (partner) |
- Loan amount: $250K (100% LTC, fits 71% LTV cap)
- Origination: 3 points = $7,500 (deducted from loan proceeds: receive $242,500)
- Closing costs at acquisition: $6,000 borrower cash
- Interest cost (6 months at 11% on $250K): $13,750 (paid from interest reserves or sponsor cash)
- Exit fee (0.5%): $1,250 at payoff
- Builders risk insurance + permits: $2,500
- Total loan costs over 6 months: $7,500 + $13,750 + $1,250 = $22,500
- Sale at ARV $350K: Gross proceeds
- Selling costs (agent 6% + title + transfer): ~$30,000 on $350K
- Net to borrower: $350,000 - $250,000 loan payoff - $22,500 loan costs - $30,000 selling costs - $8,500 (closing + insurance + permits) = $39,000 net profit
- Borrower cash invested: ~$20K–$30K total over 6 months
- Return on cash: 130–200% over 6 months (annualized 260–400%)
This math is why experienced fix-and-flip investors love 100% LTC: their cash-on-cash return is huge because they're using mostly other people's money. The trade-off is the higher rate and points compared to bank financing (which they couldn't get anyway for fix-and-flip).
Red Flags in “No Down Payment” Fix-and-Flip Marketing
- “100% LTV fix-and-flip loan”: Doesn't exist. Lenders cap LTV at 70–75% of ARV; LTC at 100% is the highest you'll see.
- “No experience required for 100% LTC”: First-time flippers don't get 100% LTC at legitimate lenders. Usually 80–90% LTC max, or partner with experienced JV.
- “No credit check needed”: All legitimate fix-and-flip lenders pull credit. Often soft pull initially, hard pull at term sheet. Anyone claiming no credit check is suspect.
- “Same-day funding for fix-and-flip”: Real fix-and-flip closes in 10–21 days. Same-day funding requires title work, appraisal/BPO, draw inspector engagement — none of which compress to one day.
- Upfront fees before term sheet: Real lenders charge good-faith deposit AFTER term sheet acceptance, not before application. $1K+ before term sheet is suspect.
- “Guaranteed approval”: Marketing claim, not a real underwriting commitment.
- Hidden balloon at end of rehab: Some lenders structure as “interest-only during rehab, then balloon” without clear payoff path. Confirm exit path (sale or refi to DSCR) before signing.
- “ARV based on appraisal but we don't get one”: Legitimate lenders order appraisal or BPO. No valuation = made-up ARV = lender will short-fund or back out at closing.
First-Time Flipper Strategies
First-time flippers typically can't get 100% LTC. Real options:
- JV with experienced partner: Partner with someone who has the experience for 100% LTC; split equity in the deal. Cleanest path for first-timer.
- Bring 10–20% equity yourself: Many first-time fix-and-flip lenders fund 80–90% LTC for first-timers with strong credit + liquidity. You bring 10–20% of cost.
- Use HELOC or 401(k) loan for the equity: Common first-time flipper move — tap home equity or retirement loan to bring the 10–20% equity. Lender doesn't care where the equity comes from as long as it's seasoned (not borrowed against this property).
- Smaller deals to build track record: Two or three $100K–$200K flips at 80–90% LTC establishes track record for 100% LTC on bigger deals.
- Hard money + private money stack: Hard money funds 75% of ARV; private money (family, friends, syndication) funds remaining 25% as second position. Higher blended cost but no borrower equity required.
Get Matched for Fix-and-Flip Financing
The fastest way to find your best fix-and-flip lender is to apply through a marketplace that submits to national hard money lenders (Kiavi, RCN, Lima One, Anchor, Park Place) plus regional specialty lenders in parallel. Get matched for fix-and-flip — one application returns multiple offers. Also see typical fix-and-flip loan rates, fix-and-flip down payment requirements, and what is ARV in fix-and-flip.
Sources & Further Reading
- National Association of Realtors (Investment Property Statistics) — NAR research on residential investment property volumes, fix-and-flip activity, and market trends.
- ATTOM Data Solutions Home Flipping Report — Quarterly home flipping data including average gross profit, ROI, time to flip, and regional market trends.
- FDIC Risk Management Manual (Construction and Development Loans) — FDIC examination guidance on construction and development lending including fix-and-flip risk considerations.
- IRS Publication 527 (Residential Rental Property) — IRS guidance on rental and investment property tax treatment — relevant if pivoting fix-and-flip to BRRRR / rental hold strategy.
Rate, fee, and policy figures cited above reflect current published guidance as of the article publication date. Always confirm current figures with the cited source or your lender before acting on financing decisions.