Has anyone been able to get 100% financing

Question

I have been getting a lot of investors expecting to be able to get 100% financing on purchase and rehab. Im just curious if anyone here has been able to obtain that and if so what lender was it?

Chris Seveney · Answer

I'm not aware of anyone who provides 100% funding, nor would I envision why anyone would want to give 100% funding.

Ryan Cobb · Answer

Agreed, and that's the part people miss. Even when purchase and rehab are covered, there's still cash needed for closing, points and carry. Thanks for laying out what actually works.

Ryan Cobb · Answer

Fair. True 100% with zero skin in the game is rare, and for good reason. Where I see it get close is experienced flippers with a strong track record, and even then they're still bringing closing costs and reserves.

Ryan Cobb · Answer

@Nicholas Floyd mostly preserving liquidity. A lot of the people I talk to have cash, they'd just rather run two projects than tie it all up in one. The ones with no cash at all usually end up needing a partner like Muyees mentioned.

Nicholas Floyd · Answer

Ryan, 100% financing is possible, but it usually comes down to how the deal is structured. Some lenders will finance 100% of the purchase and rehab if the numbers support it, particularly when the property is acquired significantly below market value.

Another strategy is combining traditional investor financing with 0% APR business credit cards or business lines of credit to cover rehab expenses and preserve cash reserves.

I work in business funding, and one thing I’ve learned is that the right capital structure can make a big difference. Are these investors looking for 100% financing because they lack available capital, or because they’re trying to preserve liquidity for multiple projects?

Muyees Ayilara · Answer

Ryan, I get this question a lot from investors, and I understand why they ask for it. I am not aware of a lender doing true 100% of purchase plus 100% of rehab with no money in and no additional collateral. No lender wants to be in first position for more than the property is worth on day one. What I do see work in the real world is this:

1. 90% of purchase + 100% of rehab, with the borrower bringing 10% down plus closing costs. That is the closest most investors get to 100%.

2. 100% of the deal, but with cross-collateral. The lender will cover it if you bring in another property with equity to secure it.

3. A gap partner or seller financing for the down payment, and a hard money / DSCR lender for the rest. If an investor has no cash, no equity in another property, and no partner, it is hard to get a deal funded. Lenders need to see some skin in the game. If you want, tell me the purchase price, rehab budget, and ARV on one of these deals and I will tell you what structure would actually work for it.

Has anyone been able to get 100% financing

Has anyone been able to get 100% financing

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