No Money Down Fix and Flip Loans: What 90% LTC Actually Costs at Closing
Easy Lending USA is a referral service, not a lender. Business-purpose loans only, secured by non-owner-occupied investment property and made to business entities. All figures below are indicative, not an offer. In licence-required states, loans are originated under our licensed lending partner’s licence.
You still bring cash. That’s the whole answer. There is no 100%-financed flip in this program set. The top tier is up to 90% of cost, and even that tier leaves you paying the other 10%, the points, the closing costs, and the interest while the house earns nothing.
Here’s what that looks like in dollars on a $200,000 purchase with a $50,000 rehab, and why the real figure is often higher than the headline suggests.
The cash-to-close arithmetic at 90%
Assume you qualify for the top tier (experienced investor, light rehab, 620+ FICO) and that ARV is at least $300,000, so the 75% ARV cap doesn’t limit the loan. Points, closing costs and rate below are illustrative, not a quote. Short-term rates currently start from 10.25%, and the rates page is the reference.
| Line item | Amount |
|---|---|
| Total project cost | $250,000 |
| Loan at 90% of cost | $225,000 |
| Your 10% of cost | $25,000 |
| Points (3% of loan) | $6,750 |
| Closing costs (title, escrow, appraisal) | ~$3,500 |
| Three months’ interest at 10.5% | ~$5,900 |
| Cash you need | ~$41,150 |
That’s about 16.5% of project cost, before insurance, utilities or any overrun. Rehab money is also released in draws against completed work, so plan to fund the first phase yourself before the first draw comes back.
When the 75% ARV cap bites first
The loan is the lower of 90% of cost and 75% of after-repair value. Keep the same $250,000 project and let the ARV come in at $280,000:
- 90% of cost = $225,000
- 75% of ARV = $210,000
You get $210,000. Your share of cost jumps from $25,000 to $40,000. With 3 points ($6,300), ~$3,500 in closing costs and three months’ interest (~$5,500), you need about $55,300. That’s roughly $14,000 more than the headline tier implied, and the only thing that changed was the appraisal. If cost is more than about 83% of ARV, the cap governs and the 90% tier stops mattering.
Most borrowers land at 85% or 80%
The program sheet sets three tiers, all capped at 75% of ARV:
- Up to 90% of cost: experienced investor, light (cosmetic) rehab. 620 minimum FICO.
- Up to 85%: some experience. 620 minimum FICO.
- Up to 80%: new investor with no completed flips. 650 minimum FICO.
At 80% on the same $250,000 project, your share of cost is $50,000. Add 3 points on a $200,000 loan ($6,000), ~$3,500 in closing costs and three months’ interest (~$5,250), and you need about $64,750. That is as far from “no money down” as it gets, and it’s the tier most first-time flippers start in.
“Light rehab” is decided from your scope of work. Paint, flooring, cabinets, fixtures and appliances typically read as light. Structural work, roof replacement, foundation, full electrical, plumbing or HVAC replacement, and layout changes typically don’t.
Where the “no money down” pitch comes from
If someone advertises a 100%-financed flip, the missing 10–20% is coming from somewhere. It’s either layered financing that raises your total cost and risk, or a partner’s equity. Neither is part of this program set. The version that holds up is a joint venture: a partner brings the cash, and you bring the deal and run the project. You give up a share of the profit, which on a good flip can easily cost more than the cash would have. But it’s an honest structure, and the first-position loan is underwritten the same way.
When this is the wrong call
- If $40,000–$65,000 at closing would empty your accounts. Once you close, you have no cushion for overruns, delays or an extra month of carry. Build reserves first.
- If your ARV rests on one comparable sale. A light appraisal moves the loan down through the 75% cap and your cash requirement up by five figures, at the worst possible moment.
- If you’d shrink the scope on paper to reach the light-rehab tier. Underwriting reads the scope of work. A misdescribed scope gets re-tiered or declined, usually after you’ve lost a week or two.
- If you plan to live in the property. This is business-purpose financing for investment property only.
What actually matters
The useful question isn’t how to put nothing down. It’s whether the cash you do put down leaves enough liquidity to finish the project if two things go wrong. If it doesn’t, the deal isn’t ready yet, and financing around that problem costs more than waiting.
Tiers, draws and eligibility are on the fix and flip program page. If you have a specific deal, submit it and we’ll tell you which tier it is likely to fall into and what cash it needs.