Down Payment Funding for Short-Term Loans

Short-term investor loans — fix and flip, hard money, and bridge — move on speed and ARV math. But even at 90% loan-to-cost (LTC), you still write a check on closing day. Down payment funding for short-term real estate loans covers that personal equity gap so you can bind contract, fund earnest money reserves, and close before another buyer takes the distressed two-flat or rowhouse.

Jaken Finance Group closes property-level short-term debt in 7–14 business days on qualified files. When your bottleneck is personal liquidity — not property approval — our referral partner pre-qualifies investors for $50,000 to $500,000 in down payment capital.

Apply for short-term down payment funding →

Hub overview: real estate down payment funding. Long-term holds: down payment funding for long-term loans.

What “down payment” means on short-term investor debt

Unlike a 30-year owner-occupied mortgage with a fixed 20% down convention, short-term asset-based loans price leverage as LTC or LTV on ARV:

Term	Meaning on a flip file
LTC	Loan ÷ (purchase + rehab). 90% LTC on $500K project = $450K debt, $50K equity
Points & fees	Often 1–3 points at close — cash, not rolled
Interest reserve	Some lenders require prepaid carry months
Closing costs	Title, legal, appraisal — typically borrower-paid

Your “down payment” is really total cash-to-close beyond the note — equity gap plus friction. On a heavy rehab, that number surprises first-time flippers who only modeled purchase price × 10%.

Typical equity gaps by short-term product

Product	Typical leverage	Cash you may still need	Jaken Finance Group program
Fix and flip	Up to 90% LTC + 100% rehab holdback	10% LTC gap + fees + reserves	Submit flip
Hard money	85–90% LTC	Higher on distressed / first-time	Hard money Chicago
Bridge to sell	65–75% as-is	Lower LTV — larger equity or bridge sizing	Bridge loans Chicago
Near-100% LTC	Up to 100% on elite files	Reserves still required	100% financing

Down payment funding fills the personal column when reserves and equity exceed what you have liquid today.

When short-term investors use down payment funding

Auction and trustee sales. You have 72 hours to wire earnest money and 10 days to close. Property approval from Jaken Finance Group is fast — personal capital must match.

Concurrent flips. Flip A is listed; Flip B needs a down payment now. Personal funding prevents idle months between deals.

First flip with strong W-2. Credit and income support personal funding; ARV supports hard money — but you have not stacked wholesaling fees yet.

Heavy rehab margin play. Lender caps LTC at 85% on a fire-damaged rowhouse because scope risk is high. Personal funding covers the extra 5–10% equity to keep the deal alive.

1031 exchange overlap. Replacement property binds before exchange proceeds arrive. Bridge loans cover property timing; personal funding may cover equity the bridge does not.

Short-term case study: Atlanta fix and flip

Investor acquires a $275,000 West End duplex — $95,000 rehab scope, $370,000 total cost.

• Jaken Finance Group fix-and-flip: 88% LTC = $325,600 loan
• Equity gap: $44,400
• Points (2%) + closing + 3-month interest reserve: ~$18,000
• Total personal need: ~$62,000

Investor pre-qualifies for $75,000 down payment funding — covers gap with buffer for draw delays. Sale at $465,000 month 8 retires hard money and personal debt from proceeds.

Compare fix and flip loans Georgia for property-side terms.

Short-term case study: DC rowhouse — 85% LTC

Distressed Shaw rowhouse: $615,000 purchase + $165,000 rehab = $780,000 project. First-time DC sponsor; lender holds 85% LTC.

• Property loan: $663,000
• Equity gap: $117,000
• DC transfer taxes on purchase: ~$12,000+
• Personal stack needed: ~$130,000 before carry

Personal down payment funding at $150,000 pre-qual; property file through fix and flip loans Washington DC. Without personal capital, sponsor loses deal despite strong ARV.

Down payment funding vs. property-side gap tools

Jaken Finance Group offers multiple property-secured tools — do not confuse them with personal down payment funding:

Tool	Secured by	Best for
Gap funding	Property / deal	LTC shortfall on approved property loan
EMD funding	Deal / contract	Earnest money deposit
Transactional funding	Transaction	Double close / wholesale
Down payment funding	Personal credit/income	Equity, reserves, overlap — not tied to one address at apply

Use property tools first when the file is already approved. Use personal down payment funding when your balance sheet is the constraint.

Documentation for short-term down payment pre-qual

The referral pre-qualification form requests:

• Name, phone, email
• Funding amount ($0–$50K through $250K–$500K bands)
• Last two years personal tax returns
• FICO 8 credit report
• Referral source

Gather docs before you apply — short-term deals will not wait for personal funding to catch up. Parallel-process: submit flip to Jaken Finance Group while personal pre-qual runs.

Start pre-qualification →

Sizing personal funding for flip timelines

Short-term debt must repay in 6–18 months. Size personal funding so repayment is explicit in your pro forma:

Net sale proceeds
  − hard money payoff
  − carrying costs
  − transfer taxes on sale
  − personal down payment funding repayment
  = target profit

If repayment consumes more than 30–40% of projected net profit, reconsider leverage on the property side (LTV/LTC guide) or negotiate purchase basis.

Credit tips for short-term stacks

Hard money is forgiving on FICO when ARV is strong. Personal down payment funding is not. Before you apply:

• Pull FICO 8 — the form asks for it explicitly
• Resolve outstanding collections that hit personal underwriting
• Document income consistently on tax returns — lenders correlate T-1 and T-2 years

You can approve on property and stall on personal — parallel early.

Markets where short-term down payment funding is common

Investors use personal equity funding alongside Jaken Finance Group short-term programs nationwide. High-velocity markets we see most often:

• Chicago — two-flats at 90% LTC still need five-figure equity on $400K+ projects
• Washington DC / DMV — rowhouse rehabs with 2%+ transfer friction
• Florida — fix and flip Florida concurrent winter deals
• Georgia & North Carolina — BRRRR-to-flip pivots with overlap timing

Frequently asked questions

Can down payment funding cover 100% of a flip? No — it covers your personal equity and reserves. The property still needs asset-based approval. See 100% financing for max property leverage.

How fast can I get down payment funding? Personal programs vary — start pre-qual early. Property loans from Jaken Finance Group often close in 7–14 days once the file is complete.

Is this a hard money loan? No. Hard money is property-secured investor debt from Jaken Finance Group. Down payment funding is personal capital from our referral partner.

What referral amount should I select? Choose the band that covers equity gap + fees + 60–90 days reserves — not the minimum. Undersizing kills deals at the wire stage.

Next steps

1. Pre-qualify for down payment funding →
2. Submit your short-term deal — address, ARV, scope, target LTC
3. Call (833) 264-7776 — coordinate property and personal stacks

Down payment funding is offered through a referral partner, separate from Jaken Finance Group property loan origination.