Updated Rates as of August 2026
Most fix and flip investors bring 10%–20% of total project cost as cash to close, plus reserves for interest and contingencies. On a $250,000 all-in deal (purchase + rehab), that is $25,000–$50,000 out of pocket unless you qualify for higher leverage.
Jaken Finance Group funds up to 100% LTC on qualified files (purchase + rehab in the loan) and caps at 75% ARV. Repeat sponsors in focus markets often see 90% LTC as the default starting point.
Quick math
| All-in project cost | 10% down | 15% down | 20% down |
|---|---|---|---|
| $180,000 | $18,000 | $27,000 | $36,000 |
| $250,000 | $25,000 | $37,500 | $50,000 |
| $400,000 | $40,000 | $60,000 | $80,000 |
Add 3–6 months of interest reserves and closing costs on top of down payment.
Fix and flip calculator · Loan eligibility
What drives your down payment — experience and ARV margin
Down payment is the gap between total project cost and loan amount, plus reserves. Lenders cap leverage at the lower of LTC and ARV:
| Sponsor profile | Typical LTC | ARV cap | Cash to close on $250K all-in |
|---|---|---|---|
| First deal | 85% | 70% ARV | $37,500+ plus reserves |
| 3+ documented exits | 90% | 75% ARV | $25,000+ plus reserves |
| Repeat in focus market | Up to 100% LTC qualified | 75% ARV | Minimal on strong files |
Jaken Finance Group funds up to 100% LTC on qualified files capped at 75% ARV. First-time sponsors should still plan 10%–20% plus 3–6 months IO reserve.
Worked example — $250K all-in flip
| Line | Amount |
|---|---|
| Purchase + rehab | $250,000 |
| Loan at 90% LTC | $225,000 |
| Down payment gap | $25,000 |
| Closing + 1.5 points | ~$6,500 |
| 6-month IO reserve at 10.75% | ~$12,100 |
| Recommended liquid capital | ~$43,600 |
Use the fix and flip calculator and 70% rule calculator. Related: how much money to start flipping · 100% financing case study
Leverage caps — why ARV beats LTC
Lenders fund the lower of LTC and ARV cap. On a $250K all-in deal with $285K ARV:
| Cap | Calculation | Max loan |
|---|---|---|
| 90% LTC | $250K × 90% | $225,000 |
| 75% ARV | $285K × 75% | $213,750 |
| Binding cap | Lower number | $213,750 |
| Down payment gap | $250K − $213,750 | $36,250 |
Add closing costs, points, and IO reserve on top. Jaken Finance Group offers up to 100% LTC on qualified experienced sponsors still capped at 75% ARV.
Product links
100% financing case study · fix and flip requirements · how much to start flipping · loan eligibility
LTC vs LTV — why your “10% down” quote became 25%
Fix-and-flip leverage uses lesser of LTC and ARV cap:
| Metric | Example | Loan |
|---|---|---|
| Purchase $200K + rehab $80K = $280K cost | 90% LTC | $252K |
| ARV $340K × 75% | ARV cap | $255K |
| Cash to close | $280K − $252K + points/closing | ~$35K+ |
If ARV compresses to $300K, 75% ARV = $225K — you need $55K cash even at 90% LTC. Always model on lender ARV, not your pro forma.
Cash-in deal types that change down payment
- Estate / probate — often need 20%+ until title clears
- Fire or flood damage — lower LTC until scope is verified
- Rural or acreage — lower ARV caps
- First deal — expect 10%–15% more skin in the game
Jaken Finance Group publishes up to 100% LTC on qualified luxury and standard flip files within 8.99%–13.5% IO. Fix and flip calculator · points guide · 100% LTC case study
Experience tier down payment matrix
| Sponsor exits | LTC | ARV cap | Cash on $250K all-in |
|---|---|---|---|
| 0 (first deal) | 85% | 70% | ~$37,500 + reserves |
| 1–2 | 88%–90% | 72%–75% | ~$25,000–$30,000 |
| 3–5 | 90% | 75% | ~$25,000 |
| 6+ (repeat) | Up to 100% qualified | 75% | Minimal on strong files |
100% LTC does not mean zero cash — reserves for IO, points, and draw float still come from sponsor liquidity.
Worked example — ARV cap binds before LTC
| Line | Amount |
|---|---|
| Purchase | $175,000 |
| Rehab | $65,000 |
| All-in cost | $240,000 |
| ARV (lender) | $310,000 |
| 90% LTC | $216,000 |
| 75% ARV cap | $232,500 |
| Max loan | $216,000 (LTC binds) |
| Down payment gap | $24,000 |
| Points (2) + closing | ~$6,800 |
| 6-month IO reserve | ~$11,500 |
| Total liquid needed | ~$42,300 |
If ARV came in at $280K instead, 75% ARV = $210K — gap jumps to $30,000 even at 90% LTC.
Reserves beyond down payment — do not skip
| Reserve bucket | Typical first deal | Repeat sponsor |
|---|---|---|
| IO carry (3–6 mo) | $8K–$15K | $6K–$10K |
| Rehab overrun (10%) | $5K–$8K | $3K–$5K |
| Extension buffer (1 mo IO) | $2K–$3K | $2K |
| Draw float between inspections | $5K–$10K | $3K–$5K |
Lender funds rehab in draws — you pay the GC before reimbursement. Empty bank account at month 3 stops the project even with approved financing.
100% LTC qualification — what underwriters look for
Fayetteville case study shows the profile: repeat sponsor, 30%+ ARV spread, clean title, conservative scope, focus market. First-time sponsors should plan 10%–20% cash to close plus reserves — not 100% LTC.
Earnest money vs down payment — different buckets
| Bucket | Typical amount | Refundable? |
|---|---|---|
| Earnest money deposit (EMD) | $1K–$10K | Depends on contract |
| Down payment gap | 10%–20% of all-in | No — equity at close |
| Closing costs + points | 2%–4% of loan | No |
| Reserves | 3–6 months IO | Stays in your account |
EMD sits in escrow and counts toward purchase price — not separate from down payment math. Lost EMD on failed deal is sunk cost before hard money even funds.
Seller carry second — reducing cash to close
Some sponsors negotiate seller second lien for part of down payment gap:
| Structure | Lender view | Risk |
|---|---|---|
| Seller second behind hard money | Must subordinate — often declined | Seller waits for flip exit |
| Seller credit at close | Preferred over second | Reduces cash need |
| Purchase price reduction | Cleanest | Lower basis |
Hard money first lien holders rarely allow unapproved second liens — disclose any seller financing before term sheet.
Partnership capital splits — who brings down payment
| JV split | Capital contribution | Loan guaranty |
|---|---|---|
| 50/50 | Each brings half of gap + reserves | Both guarantee |
| 80/20 (money/operations) | Money partner funds 80% cash | Money partner guarantees |
| Sweat equity | Operator brings $0 — rare on first deal | Operator guarantees + track record |
Lender cares about guarantor liquidity, not JV split on paper — money partner’s bank statements must show reserves.
Distressed and fire-damaged — higher down payment tiers
| Property condition | Typical LTC | Extra cash why |
|---|---|---|
| Cosmetic rehab | 85%–90% | Standard |
| Fire damage | 70%–75% | Scope uncertainty |
| Flood damage | 65%–75% | Insurance and mold risk |
| Structural issues | 60%–70% | Engineer report required |
Budget 25%+ cash to close on distressed assets — not 10% — even with 8.99%–13.5% IO approval.
Seasoned equity from prior deal — recycling down payment
| After deal 1 | Deal 2 down payment source |
|---|---|
| $35K net profit | Reinvest $20K — keep $15K reserve |
| HUD-1 proves exit | 88%–90% LTC unlocked |
| Same LLC bank account | Faster underwriting |
Document profit trail — underwriters connect prior exit proceeds to current liquidity.
Pre-qualify with your purchase and rehab numbers · (833) 264-7776