When you’re looking to flip a property, securing the right financing can make or break your deal. One of the most common questions investors ask is: “How much do I need for a down payment on a fix and flip loan?”
The answer depends on several factors, including your credit score, real estate experience, and the property’s after-repair value (ARV). In this comprehensive guide, we’ll explore fix and flip loan down payment options, show you what to expect in 2025, and give you strategies to maximize your investment potential.
👉 Ready to apply? Start your application here: Fix & Flip Loan Application
Why Down Payments Matter in Fix and Flip Loans
A down payment isn’t just a requirement—it’s a signal to lenders that you’re financially committed to the project. For investors, it’s also a way to:
- Secure favorable loan terms.
- Reduce risk exposure for both you and the lender.
- Leverage financing to take on larger or multiple projects.
Since fix and flip loans are short-term and specifically designed for investors, down payment requirements are structured differently than traditional mortgages.
Typical Fix and Flip Loan Down Payment Options
1. Standard Down Payment Range
Most fix and flip loans require 15%–25% down, depending on your qualifications. Investors with stronger credit, financial stability, and proven experience may qualify for lower down payment options.
2. Down Payments Based on Loan-to-Value (LTV)
Instead of a flat percentage, many fix and flip loans are based on LTV (loan-to-value) or ARV (after-repair value) calculations. For example:
- Loan covers up to 75%–80% of the purchase price.
- Loan covers up to 65%–70% of ARV, ensuring renovation costs are factored in.
This means the more profitable your project looks on paper, the more favorable your down payment terms may be.
3. Experience-Based Options
If you’ve successfully completed multiple flips, you may qualify for lower down payments. Lenders see experienced investors as lower risk and may offer more flexible terms. First-time investors may need a higher down payment to get started.
4. Credit-Based Options
A minimum credit score of 620 is required. If your score is on the higher side, you may be eligible for more favorable down payment structures. If it’s closer to the minimum, expect to bring more money to the table.
Truss Financial Fix and Flip Loan Requirements (2025)
Here’s a quick breakdown of current eligibility standards:
- Credit Score: Minimum 620
- Property Type: Non-owner-occupied
- Investment Plan: Renovation budget and project timeline required
- Experience: Preferred, but not mandatory
- Loan Amount: $100,000 minimum
- Bankruptcy: No filings within the past two years
- Approval Timeline: 7–10 business days on average
👉 Get approved with no commitment, no documents required, and no impact on your credit score. Apply here: Fix & Flip Loan Application
Creative Ways Investors Fund Down Payments
For many real estate investors, the down payment can be the biggest hurdle. Luckily, there are several strategies to make it work:
1. Personal Savings
The simplest option—using your own capital to fund the down payment. This shows lenders you’re serious and minimizes financial risk.
2. Partnering with Investors
Many flippers bring in equity partners who cover the down payment in exchange for a percentage of profits. This is a common strategy for first-time investors or those scaling quickly.
3. Home Equity
If you own property, tapping into your home equity can help cover a down payment without depleting cash reserves.
4. Private Capital
Some investors borrow from friends, family, or private partners for the down payment. With clear agreements, this can be a powerful tool to grow your portfolio.
How Much Should You Put Down?
While the minimum may get you into a deal, putting down more can sometimes be strategic. A larger down payment can:
- Lower your overall risk.
- Increase your profit margin by lowering financing costs.
- Strengthen your application if your credit or experience is limited.
Ultimately, the right balance depends on your financial situation and investment goals.
Rates and Terms
Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.
Why Work With Truss Financial Group?
Unlike traditional lenders, Truss Financial has built its platform to serve real estate investors who often get overlooked. In 2024, Truss approved 81% of applicants—a significant contrast to the nearly 47% denial rate across traditional lenders.
Additional benefits include:
- Fast approval within 7–10 business days.
- Flexible terms tailored to your project.
- One loan covering both purchase and renovations.
- High approval rates with no upfront documents required.
👉 See if you qualify today: Fix & Flip Loan Application
Final Thoughts
Fix and flip loan down payment options in 2025 are flexible and designed to empower investors at all levels. Whether you’re a seasoned flipper or just getting started, understanding how down payments are structured will help you plan smarter and move faster on opportunities.
With Truss Financial Group, you get:
- High approval rates.
- Competitive down payment options.
- A lending partner who understands real estate investors.
Don’t let financing hold you back from your next profitable deal.
👉 Start your journey today: Apply for a Fix & Flip Loan