Updated
Qualified flip loans up to $2.5M can fund 100% of purchase and rehab, capped at 75% of after-repair value. You still need cash. Closing fees, loan payments, repair overruns, and cash spent before rehab draws still need a plan.
Jaken Finance Group offers this option for non-owner-occupied investment property. Published fix-and-flip terms are 8.99%–13.5% interest-only over 6–12 months. Maximum leverage depends on the file; the published ceiling is not an approval.
If you have a property in mind, submit the flip with the price, rehab budget, expected sale value, and cash available. The useful first answer is how much the loan can fund and how much you must bring.
What does the lender mean by 100%?
Ask what the percentage applies to. These claims describe different amounts:
| Advertised funding | What it covers | What still needs checking |
|---|---|---|
| 100% of purchase | The acquisition price | Rehab, fees, and costs during the hold |
| 100% of rehab | The approved work budget | Purchase equity and cash before each draw |
| 100% loan-to-cost | Eligible purchase plus rehab costs | The value cap, closing fees, and cash after closing |
Loan-to-cost (LTC) is the loan divided by the costs the lender agrees to finance. After-repair value (ARV) is the supported value of the finished property. The lender’s approved budget defines eligible costs; do not assume every tax, fee, or carrying cost is included.
A rehab holdback is money kept by the lender for later draws. It is part of the loan commitment, but it is not all paid to you at closing. Read the fix-and-flip draw process before agreeing to contractor deposits.
The 75% ARV cap can reduce a 100% request
The maximum loan is the lower of the approved cost-based amount and 75% of supported ARV. The lender can approve less based on the full file.
Consider a hypothetical $185,000 purchase and $65,000 rehab. Eligible costs total $250,000. If the appraised ARV is $310,000, the value cap is:
$310,000 × 75% = $232,500.
That leaves $17,500 of project costs for the borrower before fees or reserves. The loan covers 93% of the $250,000 budget, even if the program allows up to 100% LTC. A program maximum and a funded amount are different numbers.
Changing the sale estimate in a spreadsheet does not remove the gap. The value must have support from comparable sales and the planned work. Review LTV and LTC if your quote uses both terms.
A cash budget when full purchase and rehab funding fits
This is a hypothetical planning example, not a funded transaction or quote. Assume a $150,000 purchase, $50,000 approved rehab, and $280,000 ARV. The 75% value cap is $210,000, so a $200,000 loan fits that cap. Full funding still requires approval.
Use an illustrative 11% rate and two points, meaning a fee equal to 2% of the loan:
| Cash item | Example amount | When it matters |
|---|---|---|
| Purchase and approved rehab equity | $0 | Only if the full $200,000 is approved |
| Two origination points | $4,000 | At closing |
| Other closing and report costs | $3,000 | Before or at closing |
| Total closing costs | $7,000 | Before any deposits already paid |
| Six months of interest on the full $200,000 | $11,000 | Budget held for monthly payments |
| Cash to start work before the first draw | $10,000 | Until approved reimbursement arrives |
| Repair contingency | $5,000 | For work beyond the approved budget |
| Taxes, insurance, and utilities budget | $4,000 | During the project |
| Starting cash plan | $37,000 | Closing costs plus cash kept for the project |
This example keeps the interest, draw cash, contingency, and operating budget separate. Do not count the same dollars twice. The $37,000 is a planning figure, not a universal reserve requirement or another loan fee.
Actual interest depends on the contract and whether it is charged on drawn funds or the full commitment. Draw cash may be reused after each reimbursement. If you already paid earnest money or report fees, reconcile those payments with the settlement statement so you do not add them twice.
Run your own costs in the fix-and-flip calculator. Then ask for a written breakdown of closing funds, rehab holdback, payment basis, and cash that must remain available.
What makes a maximum-leverage request worth reviewing?
A strong request connects four facts: the purchase is priced below the supported finished value, the work budget explains that increase, the borrower can carry the project, and the exit can repay the debt.
Document recent sold comparables and explain material differences. Get a contractor bid that names the work, price, and payment stages. Show funds that are available now, with other active projects disclosed. Include enough time for repairs, permits, marketing, and the buyer’s closing.
Credit-flexible underwriting with no minimum FICO on select programs. Approval is collateral-first — driven by ARV, LTC, scope, liquidity, and exit strategy. We may pull credit to review trends, but FICO is not the primary approval driver. Prior projects help demonstrate ability to finish, but experience alone does not make a thin-margin deal work. Use the loan requirements checklist to prepare the file.
When the deal needs a different plan
| Situation | Next step |
|---|---|
| No cash for fees, payments, or the first rehab stage | Build a cash plan before relying on full funding |
| Purchase and rehab exceed the value cap | Add equity, renegotiate the price, or reduce justified costs |
| You plan to live in the home | Use an owner-occupied mortgage lender |
| You plan to keep the property as a rental | Check the DSCR refinance exit before taking short-term debt |
| Another lender already holds the first lien | Disclose it and confirm whether a second lien is allowed |
| You are investing from outside the U.S. | Prepare the foreign-national flip documents early |
Borrowing the gap adds another repayment obligation. A gap-funding request is separate from approval for a first mortgage. Model both payoffs and fees; do not assume the first lender accepts borrowed equity or junior debt.
Costs that can change after you sign the contract
Stress the deal with a lower sale price, higher repair costs, and a longer hold. A loan that funds the purchase can still leave you short of cash to finish or sell.
Older homes deserve a careful scope. The EPA’s renovation program covers certain work that disturbs paint in pre-1978 housing, including homes flipped for profit. Confirm the work requirements with your contractor and include them in the bid. A cheap quote that leaves out required work can create a larger cash gap later.
Also ask how extension requests work, what a draw inspection costs, and which conditions remain before funding. The points and fees guide helps you compare the full cost of two offers.
Program overview and next step
Submit your fix-and-flip scenario with the address, purchase price, repair budget, ARV support, cash available, and target closing date. Include your prior experience and any existing loan. A complete file lets the review focus on a usable funding amount.
Rates and terms are subject to change and full underwriting. The published closing window is 7–10 business days on qualified complete files, after borrower conditions are met. Third-party valuation and property access can affect timing. Residential investment loans are for non-owner-occupied property only.