100% Financing — Too Good to Be True?

Question

I’ve seen more lenders offering higher leverage lately. Curious — has anyone here closed a deal with 100% financing, and what was your experience?

David Krulac · Answer

The first 11 properties were all 100% financed in one way or another, because I did not have any money and had just started a new entry level low paying job.

Ryan Stuckey · Answer

100% financing on both purchase price and rehab cost? YES, it's not uncommon in some areas of the country with certain regional hard money lenders offering it with various conditions (I am part of one). You will have more chance of obtaining it if you have rehab experience and good credit. And this 100% LTC financing will be capped at 65-75% of ARV as risk mitigation. That means you need a solidly profitable deal to get this level of financing.

100% financing on purchase price, rehab cost, AND closing costs? NO, this is not available outside of a close personal relationship (i.e. private lender in your local area). The 100% purchase and rehab lenders expect the borrower to have the liquidity to cover the closing costs as well as having some excess liquidity beyond these costs to be able to run the project well (i.e. to contribute some investment into the project and to have skin in the game).

Rick Pozos · Answer

Almost all of my deals are 100% to 150% financed.

BUT they are friends and family who lend me the money. They finance the purchase AND rehab all up front. When I buy something, my sister, her ex-husband, some friends, they all send the 100k to fund and the 20k for all of the rehab to closing. What ends up happening is that I usually get 17k or 18k wired to me at closing. I might have to end up finishing up the rehab with a few thousand, that got taken for closing costs.

I have never had a hard money loan company where I did not have to put down at least 10% of purchase.

Benjamin Louie · Answer

@Brandon Lee 100% financing does exist, but it’s pretty rare and usually comes with stricter requirements like excellent credit, strong income, and sometimes higher interest rates or private lender terms. I’ve seen deals done, but most investors stick closer to 80–90% LTV to keep cash flow safer and avoid added risk. If you’re considering it, make sure you run the numbers carefully. Closing costs, reserve requirements, and potential payment increases can eat into your returns fast.

Doug P. · Answer

@Brandon Lee Nearly 100% of my purchases have been 100% seller financing, usually at 0% interest. It's not too good to be true or all that hard to find. In my experience 30% of sellers are willing to provide financing, then you just narrow them down to the 2% who will do it with little or nothing down and little or no interest.

Erik Estrada · Answer

It exists but the borrower needs to have a track record of 5 or more flips exited in the last 3 years. Additionally most will cap the loan amount at 65-70% of the ARV and will require their own appraisal

Justice John · Answer

Ryan can you reach out to me about your service. I am interested for my next fix and flip property.

Eddie Starr · Answer

My network has up to 100% LTC/LTV, but they are mainly for large construction projects +$10M. Lower valued construction is 75%

The only other is NNN properties of +$2M, and that's dependent on the credit of the tenets. Case by case.

Mixed or multifamily is usually up to 90%, rates starting 2.75%.

The preferences are to construction, luxury properties, hotels/resorts/casinos, but again, it's construction or NNN for up to 100%, whereas the rest is 75-90%/

100% Financing — Too Good to Be True?

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