Can You Get a Fix and Flip Loan with No Money Down?

Many aspiring house flippers ask the same question: can you secure a fix and flip loan without putting any of your own cash down? The short answer is: sometimes — but it depends on the financing route you choose, the strength of your deal, your experience, and the relationships you build. This article explains practical paths to “no money down” financing, what lenders typically expect, the risks involved, and how to prepare a winning loan package.

What “No Money Down” Really Means for Fix and Flip Loans

When people say “no money down,” they usually mean one of the following:

• The lender provides 100% of the purchase price and renovation costs.
• A partner or investor covers the cash portion while you manage the project.
• The seller finances part or all of the purchase (seller financing) with little to no buyer cash.
• Short-term transactional funding covers a very quick resale without a long-term loan.

Each route has different requirements, costs, and levels of risk. True 100% financing from a lender is uncommon and usually comes with higher fees, faster repayment terms, or strict criteria.

Common Ways to Get a Fix and Flip Loan with Little or No Personal Cash

1. Partner with an Equity Investor or Private Money Partner

Find an investor who will supply the purchase and rehab capital in exchange for a share of profits or a preferred return. In this model you typically provide the deal sourcing, project management, and local knowledge. This is a common and practical way to achieve a “no money down” position for active flippers who lack capital but have experience or time to manage projects.

2. Seller Financing

Some sellers will carry paper for all or part of the purchase price. Seller financing can be structured creatively to minimize upfront cash: low down payments, balloon payments, or interest-only terms for a short period. Sellers are more likely to agree if the property is distressed and other buyers are scarce.

3. Hard Money Lenders (With High LTV or Rehab Coverage)

Private/hard money lenders focus on the property and the exit strategy rather than traditional underwriting. A lender may fund purchase plus rehab through an initial loan and a construction draw schedule. While true zero down is rare, some hard money lenders will fund up to a high percentage of the purchase price plus rehab costs when the after-repair value (ARV) and exit plan are strong.

4. Transactional Funding for Very Short-Term Assignments

Transactional funding is designed for flips that are flipped immediately via assignment or simultaneous closing. It can cover the purchase for one day to a few days while the flipper assigns the contract. This is not a long-term solution, but it enables deals without capital if you can wholesale or assign quickly.

5. Home Equity or HELOC on Another Property

If you own another property with equity, a home equity loan or HELOC can provide cash for purchase and rehab. This can appear like “no cash down” for the flip itself, though you are using your own secured borrowing.

6. Contractor or Supplier Financing

Some contractors or suppliers offer payment terms or financing for renovation work. Combining partial supplier financing with other sources can reduce the cash you need up front.

7. Crowdfunding and Peer-to-Peer Platforms

Real estate crowdfunding platforms and private networks sometimes pool capital for flips. This can substitute for personal capital, but platforms vary widely in fees, minimums, and vetting requirements.

Typical Eligibility Criteria and Loan Features

Exact requirements differ by lender and financing path, but these are common expectations for fix and flip lending:

• Minimum credit score often in the 620+ range for mainstream or certain private programs.
• Property must be non-owner-occupied (investment property).
• A clear renovation budget and a realistic timeline; lenders want a solid investment plan.
• Experience in real estate is preferred but not always required—experience can compensate for weaker credit.
• Minimum loan amounts may apply; many programs start at around $100,000.
• Proof of financial stability and the ability to pay interest/fees during the project.
• Recent bankruptcies may disqualify some applicants—expect stricter scrutiny within the first two years after a filing.

Loan Structure and How Funds Are Delivered

Fix and flip loans are typically short-term (6 to 18 months) and structured to cover:

• Purchase price
• Rehabilitation costs (often held in a draw account released as work is completed)
• Carrying costs (sometimes rolled in or expected to be covered by the borrower)

Draw schedules are standard: the lender releases rehab funds in stages as work is inspected and approved. Lenders focus on the after-repair value (ARV) and usually cap total loan exposure to a percentage of ARV.

Timeline: How Fast Can You Get Approved?

Approval speed varies. Many borrowers receive formal loan approval within 7–10 business days when their paperwork, deal package, and property valuation are straightforward. Early-stage pre-approvals or soft approvals can come even faster if the lender has all the necessary documentation and a strong property case.

Costs and Trade-offs of “No Money Down” Deals

Getting financing with little or no personal cash usually comes with trade-offs:

• Higher interest rates and origination fees compared with conventional loans.
• Stricter repayment timelines and heavier reliance on the exit strategy.
• Potentially lower loan-to-cost or loan-to-ARV limits that reduce flexibility.
• In partnerships, you may give up more profit share to the capital provider.
• More paperwork or personal guarantees—lenders still want to mitigate risk.

How to Improve Your Chances of “No Money Down” Approval

Follow these practical steps to strengthen your position and make no-money or low-cash deals more likely:

1. Put together a thorough deal package: purchase contract, contractor bids, itemized rehab budget, timeline, and realistic ARV comps.
2. Show a clear exit strategy: resale, refinance, or buy-and-hold plan with numbers that make sense.
3. Build relationships with investors, private lenders, and local crews. Trust and track record go a long way.
4. Consider partnering: bring deal expertise and project management in exchange for capital from an investor.
5. Have contingency plans and reserves. Lenders and partners prefer to see a small cushion even when they fund most costs.
6. Be transparent about experience and weaknesses. Lenders value honesty; present mitigation strategies if you lack experience.

Risks to Understand Before You Try “No Money Down”

While no-money deals can accelerate growth, they also magnify risk:

• Less personal skin in the game may reduce your control or motivate risky behavior.
• If the market softens, projects funded at high leverage may underperform and become hard to exit.
• Costs and timelines often slip. If you can’t sell on schedule, fees, interest, and extensions add up quickly.
• Partner conflicts can arise over scope, timelines, or profit distribution. Clear written agreements are essential.

Step-by-Step: Typical Workflow for a Fix and Flip with No Money Down

Use this checklist to organize a deal when you’re pursuing low- or no-cash financing:

1. Find a property with strong ARV potential vs. purchase price.
2. Run comps and create a detailed repair scope and budget.
3. Identify potential capital sources (investor partner, seller carry, private lender, or HELOC).
4. Assemble a professional package and present it to your chosen capital source.
5. Secure approval or a funding commitment conditioned on inspections or appraisals.
6. Close on the purchase with the agreed financing structure.
7. Manage rehab with draws and inspections, keeping records and photos.
8. Market the finished property and execute the exit plan (sell, refinance, etc.).

When Is “No Money Down” a Bad Idea?

There are times you should avoid trying to do a deal with no personal cash:

• The numbers are tight: low ARV margin or high renovation uncertainty.
• Unreliable contractors or no contingency funds exist for surprises.
• You lack a clear exit strategy or the local market is uncertain.
• The financing terms require giving up too much profit or too much control.

How Lenders View Experience vs. Credit

Many private and hard money lenders weigh the strength of the deal and the borrower’s experience more heavily than traditional credit scores. Experience managing flips, strong local market knowledge, and a clear track record can help offset weaker credit. That said, most programs still have minimum credit expectations and want to see stability and no recent major financial events.

Typical Loan Terms and What to Expect

Fix and flip loans usually have short terms (commonly 6 to 18 months) and interest-only payments during the project. Fees and points vary by lender and the chosen financing method. If you need more time, many lenders provide extension options with additional fees — always discuss these before closing to avoid surprises.

Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.

Where to Learn More or Apply

If you want to explore fix and flip financing that can cover both purchase and renovation costs or discuss potential no-money-down structures, start by preparing your deal package. When you’re ready, you can request more information or apply through this dedicated fix-and-flip loan page: Apply or learn more about fix & flip loans.

Final Thoughts

Can you get a fix and flip loan with no money down? Yes — in certain situations and with specific strategies — but it isn’t the norm for every borrower or every property. The most reliable paths are partnerships, seller financing, carefully structured private loans, or extremely strong deals that justify higher leverage. Do your homework, prepare a professional package, and choose the financing route that aligns risk with reward.

Frequently Asked Questions (FAQs)

Can I get a fix and flip loan with zero down if I have poor credit?

It’s possible, but more difficult. Some private lenders focus on the property and exit strategy rather than credit. If credit is weak, you’ll likely need stronger deal economics, more experience, or a capital partner. Transparent communication and an excellent rehab plan improve your chances.

How long does approval usually take?

Approval times vary, but many borrowers receive loan approval within 7–10 business days when documentation and property valuation are straightforward. Timelines can be shorter for lenders with streamlined processes or longer if underwriting requires more verification.

Are rehab costs covered by fix and flip loans?

Yes — many fix and flip loans are designed to cover both purchase and renovation costs via a draw schedule. Lenders release funds as work is completed and inspected. Make sure your rehab budget is detailed and realistic to avoid cash shortfalls.

What credit score do I need?

Typical programs may require a minimum credit score around 620, but requirements vary widely. Some investors and private lenders may lend to lower scores if the deal is strong and other conditions are met.

What loan term should I expect?

Fix and flip loans commonly range from 6 to 18 months. These are short-term loans intended to fund the project until you sell or refinance. If you need more time, discuss extension options before closing.

What happens if I don’t sell the property in time?

If you can’t sell within the loan term, lenders may offer extensions for additional fees, or you may need to refinance into a different product. Plan for contingencies and maintain open communication with your lender to avoid penalties.

Do fix and flip loans require personal guarantees?

Many lenders ask for a personal guarantee or additional collateral, especially if you’re relying on high leverage or have limited experience. This helps secure the loan but increases personal risk.

Is “no money down” safe for beginners?

Not usually. Beginners should be cautious with no-money-down deals because they amplify risk. Consider partnering with an experienced investor or starting with lower-leverage projects until you build a track record.

How can I find the right funding option for my project?

Start by preparing a complete deal package and evaluating your credit, experience, and local market. Reach out to lenders and investors with your package and compare terms. If you’re ready to learn more or request a quote, visit this fix-and-flip loan page: Get a personalized fix & flip loan quote.