90% LTC Fix and Flip Loans: What “Light Rehab” Means and When You Get 85% or 80% Instead
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.
“Up to 90% of cost” is a real number on the fix and flip program. It is also the number most borrowers don’t get. It takes two conditions at once: you’re an experienced flipper, and the project is light rehab. Miss either one and you drop to 85% or 80%. On a typical deal that’s $11,000 to $22,000 more cash at closing.
Here’s how the tiers work, what “light” usually means in practice, and the arithmetic that tells you whether chasing the top tier matters for your deal at all.
The three tiers on the program sheet
| Borrower profile | Max loan-to-cost | Min FICO |
|---|---|---|
| Experienced, light rehab | Up to 90% | 620 |
| Some experience | Up to 85% | 620 |
| New investor, no completed flips | Up to 80% | 650 |
| Cap on every tier | 75% of after-repair value (ARV) | |
Loan sizes run from $115,000 to $8 million on 12- to 18-month terms. Rehab money is released in draws, not at closing. The loan is the lower of the LTC figure and 75% of ARV. That second limit matters more than most people expect, and there’s a section on it below.
What “light rehab” usually means
The program sheet doesn’t publish a dollar cutoff for light rehab. The call is made from your scope of work, line by line. In practice, underwriting reads a scope as light when it improves the finish and leaves the structure and systems alone. That means paint, flooring, cabinets, counters, fixtures, appliances, and exterior cosmetics.
The scope stops reading as light when it includes:
- Moving or removing load-bearing walls, or changing the layout
- Foundation, framing or roof structure work
- Full replacement of electrical, plumbing or HVAC systems
- Additions, conversions, or adding bedrooms or units
One heavy line item can reclassify the whole scope. Underwriting won’t lend 90% on the cosmetic half and 85% on the rest. If your $50,000 bid includes a $14,000 panel-and-rewire, expect the project to be treated as more than light.
What “experienced” means
Experience is documented, not self-reported. The usual yardstick is completed deals in the last 36 months. Three or more typically counts as experienced, one or two counts as some experience, and none counts as new. Expect to show settlement statements for the purchase and the sale, with you or your entity on them. A deal that shows up only in your own account of it generally won’t count.
Worked example: what each tier costs at closing
You’re buying for $180,000 with a $45,000 rehab budget, so total cost is $225,000. ARV is $310,000, and 75% of that is $232,500. The ARV cap doesn’t bind here, so your tier sets the loan.
For illustration only, assume 2 points, $2,500 in closing costs, and 12% interest carried for six months on the full balance. Actual pricing depends on the file. Short-term rates currently start from 10.25%, and the rates page is the reference.
| 90% LTC | 85% LTC | 80% LTC | |
|---|---|---|---|
| Loan amount | $202,500 | $191,250 | $180,000 |
| Your share of cost | $22,500 | $33,750 | $45,000 |
| Points (2%) | $4,050 | $3,825 | $3,600 |
| Closing costs | $2,500 | $2,500 | $2,500 |
| Cash to close | $29,050 | $40,075 | $51,100 |
| Six months’ interest | $12,150 | $11,475 | $10,800 |
| Total cash committed | $41,200 | $51,550 | $61,900 |
The step from 80% to 90% saves $22,050 at closing. Interest runs higher on the bigger loan, so the saving in total cash committed is $20,700. One more thing: draws are released against completed work. Budget to fund the first phase of the rehab yourself before the first draw comes back.
When the ARV cap makes the tier irrelevant
Keep the same $225,000 cost but drop ARV to $260,000. Now 75% of ARV is $195,000, which is less than the $202,500 a 90% loan would give. You get $195,000, which works out to 86.7% of cost. Qualifying for the top tier bought you $3,750 over the 85% tier, not $11,250.
At an ARV of $250,000, the cap is $187,500, or 83.3% of cost. An experienced borrower and a borrower with some experience end up with nearly the same loan. The rule of thumb: when total cost is more than about 83% of ARV, the ARV cap limits the loan before a 90% tier can help. On those deals, stop chasing the tier and start looking hard at the purchase price.
When this is the wrong call
- If the deal only works at 90%. A deal that needs maximum leverage to close has no room for a 10% rehab overrun or an appraisal that comes in light. You’ll want that cash in reserve, not in the down payment.
- If you’d trim the scope just to stay “light”. Skipping the panel upgrade the house needs, just to keep the tier, puts a worse product on the market and risks the resale and the ARV the loan was sized on.
- If it’s your first flip. You’re at 80% and a 650 FICO minimum regardless of scope. A first deal with a heavy structural scope is the file most likely to stall. Pick a cosmetic project and build the track record that unlocks the higher tiers.
- If you plan to live in it. This is business-purpose financing for investment property only. It is not a route to buying a home.
Get the classification before you submit
Send the scope of work and your deal history with the file, not after it. Whether the project reads as light, and how your experience is counted, both come from those documents. Borderline scopes are better settled at the start than in a round of conditions the week before closing.
Terms, draw process and eligibility are on the fix and flip program page. When the numbers work, submit the deal and we’ll tell you which tier it is likely to fall into.