Updated Rates as of August 2026
Most hard money files require a third-party valuation — full appraisal, interior BPO, or hybrid report. Select programs for experienced sponsors may accept documented comps when ARV is well supported.
“No appraisal” marketing is often misleading. Jaken Finance Group uses collateral-first underwriting with valuation on virtually all files. Appraisal policy on eligibility page
Valuation types on investor hard money
| Report type | Typical use | Cost |
|---|---|---|
| Full interior appraisal | First deal, complex asset | $600–$900+ |
| Interior BPO | Repeat sponsor, SFR | $450–$750 |
| Hybrid / desktop | Strong comp pack only | $350–$550 |
Jaken Finance Group uses collateral-first underwriting with valuation on virtually all files. Select programs for experienced sponsors may accept documented comps — not a blanket no-appraisal offer.
ARV review process
- Third-party report sets as-is and ARV
- Lender applies LTC and ARV caps (up to 75% ARV on qualified flip)
- Your pro forma ARV is a starting point — binding number is on the report
- Scope must support ARV — luxury finishes need comp proof
Loan eligibility · fix and flip requirements · Rates 8.99%–13.5% IO
When comp-based review may work
Experienced sponsors with 5+ exits in the same submarket may qualify for streamlined valuation — interior BPO or hybrid report instead of full appraisal. Requirements:
- Sold comps within 90 days, same block or subdivision
- Scope matches comp tier (finish level)
- No unusual property type (log home, dome, etc.)
First deals virtually always need full interior valuation.
Appraisal vs your pro forma — gap management
If lender ARV comes in $20K below your pro forma, options: (1) reduce loan amount and bring cash, (2) cut scope, (3) walk away. Jaken Finance Group underwrites collateral-first at 8.99%–13.5% IO. Fix and flip requirements
Appraisal alternatives by experience tier
| Sponsor profile | Typical valuation |
|---|---|
| First deal | Full interior appraisal |
| 3–5 exits same MSA | Hybrid / BPO + photos |
| 10+ exits, clean submarket | Streamlined comp review |
“No appraisal” marketing usually means no traditional 1004 — not no valuation. Lender still sets max ARV from sold comps you did not pick.
Low appraisal response playbook
- Request reconsideration of value with missed comps (same block, similar GLA)
- Cut scope to match comp tier
- Bring cash to close the gap
- Walk — deposit risk vs bad basis
Jaken Finance Group underwrites collateral-first at 8.99%–13.5% IO with 7–10 business day targets when valuation is clear early. Fix and flip requirements · what is hard money · calculator · loan eligibility
Property-type appraisal requirements
Appraisal scope varies by asset — and the wrong report type delays your close:
| Property type | Typical report | Turn time | Cost driver |
|---|---|---|---|
| SFR flip | Interior appraisal with ARV | 5–7 days | GLA, condition photos |
| 2–4 unit | Multi-family form with rent schedule | 7–10 days | Unit count, separate meters |
| Condo | Interior + HOA questionnaire | 7–12 days | Litigation, delinquency |
| Mixed-use | Commercial appraisal | 10–14 days | Retail income, zoning |
Chicago two-flats and DC row homes often need rent schedule on the appraisal even for flip exits — the lender wants proof the asset could convert to rental if the sale stalls.
Market-specific valuation nuance
Florida coastal properties trigger wind-zone and flood insurance quotes that affect ARV support — appraisers in Pinellas and Miami-Dade often haircut value when insurance exceeds 1.5% of ARV annually.
Indiana Gary corridor comps span wide quality bands. An appraiser who pulls suburban Merrillville sales for a city two-flat can miss $30K–$50K in ARV. Submit your own sold comps from the same census tract before the order goes out.
Charleston historic rehabs need scope photos matching Historic Review Board approved finishes — appraisers downgrade ARV when the subject exceeds neighborhood comp tier.
Worked example — appraisal gap on a $265K flip
| Line | Your pro forma | Lender appraisal |
|---|---|---|
| As-is value | $195,000 | $188,000 |
| ARV | $340,000 | $315,000 |
| All-in cost | $265,000 | — |
| Max loan at 75% ARV | $255,000 | $236,250 |
| Cash gap | $10,000 | $28,750 |
Options: bring $18,750 extra cash, cut $15K from scope (drop quartz for laminate), or walk. Ordering appraisal before you remove inspection contingency protects your deposit.
Pre-close appraisal checklist
- Pull three sold comps within 0.5 miles, closed within 90 days
- Match finish level — do not comp a granite kitchen against laminate neighbors
- Document scope with line-item SOW tied to ARV tier
- Pay appraisal fee day one — Jaken Finance Group targets 7–10 business days after payment
- Request reconsideration within 48 hours if appraiser missed a same-block sale
As-is value vs ARV — two numbers, two leverage caps
Hard money underwrites on both:
| Value type | Definition | Leverage use |
|---|---|---|
| As-is | Current condition | Purchase price sanity check |
| ARV | After rehab per scope | 75% ARV cap on flip |
A property with $180K as-is and $320K ARV after $70K rehab has $250K all-in cost. Max loan is lesser of 90% LTC ($225K) and 75% ARV ($240K) = $225K. If ARV appraises at $290K instead, 75% = $217.5K — LTC no longer binds.
Desktop and hybrid reports — when they work
| Report | Interior access | ARV support | Sponsor tier |
|---|---|---|---|
| Full 1004 interior | Yes | Strong | First deal |
| Hybrid (exterior + photos) | Limited | Moderate | 3+ exits |
| Desktop | No | Weak for gut rehab | Rare |
Gut rehabs with removed kitchens and open walls need interior photos — desktop reports undervalue ARV and cap leverage.
Rural and acreage valuation challenges
Properties on 2+ acres or rural zip codes face:
- Comp radius expansion to 3–5 miles — different market tiers
- Well/septic condition adjustments
- Lower ARV caps — 65%–70% instead of 75%
- Longer turn time — 10–14 days for appraiser travel
Budget extra cash to close on rural flips — lender ARV will not match suburban comp logic.
Ordering appraisal before inspection contingency
Smart sponsors in competitive markets (Atlanta, Charlotte) order appraisal during due diligence:
| Day | Action |
|---|---|
| 1 | Contract executed |
| 3 | Appraisal ordered with SOW attached |
| 10 | ARV received — confirm deal works |
| 14 | Remove inspection contingency |
If ARV misses by $25K+, renegotiate or terminate before you are locked in. Jaken Finance Group targets 7–10 business days to close after valuation clears at 8.99%–13.5% IO.
Reconsideration of value — what actually works
Appraisers adjust when you submit closed sales they missed, not Zestimates:
- Same subdivision, sold within 60 days
- Similar GLA (±10%), bed/bath count
- Similar condition post-rehab for ARV comps
- Adjustments explained line-by-line
Attach MLS sheets with photos — not a Redfin screenshot. Successful ROVs add $10K–$30K to ARV on about 30% of contested files.
Pre-qualify with your address and comps · (833) 264-7776