Can You Finance 100% of Rehab on a Flip Loan?

We have run the draw process on our own projects more times than we can count. “100% of rehab” is real, but it does not mean what a lot of new flippers think it means. Here is the straight version.

What 100% Rehab Financing Actually Means

The lender escrows your full renovation budget at closing and releases it in stages: you complete a phase of work, an inspector verifies it, and the lender reimburses you. Two consequences follow. First, you front each phase before reimbursement — 100% funded is not 0% cash needed. Second, the budget the lender approves at closing is the budget; mid-project scope creep comes out of your pocket unless you formally modify.

The Caps That Contain It

• ARV cap: total loan — purchase portion plus rehab — must fit under a percentage of the after-repair value. A thin deal hits this ceiling before the rehab budget is fully covered.
• Cost cap: lenders also limit the loan against total project cost, so you are always bringing a real down payment on the purchase side.
• Experience tiers: verified completed projects raise your leverage on both sides. First-timers get funded, just with more skin in.

Making the Draw Process Work for You

• Structure the draw schedule around your cash reality — front-load early, high-cost phases you will complete first.
• Document relentlessly. Photos, invoices, lien waivers. Clean documentation is the difference between a 48-hour draw and a two-week one.
• Hold a contingency outside the loan. Our rule from 100+ projects: the surprise is not a possibility, it is a line item.

The Question Behind the Question

Investors asking about 100% rehab financing are usually asking how little cash a deal can take. The honest answer: leverage maximizes returns on good deals and losses on bad ones. Maximize the discount at purchase first — financing structure second. That order built our whole portfolio.

Frequently Asked Questions