100% Hard Money Financing

A hard money loan is a short-term financing option that bases terms on real estate rather than a borrower’s credit score. Unlike a traditional mortgage, a hard money lender will use the property as collateral, making this loan a more accessible and popular option for house flippers.

When examining hard money loan financing options, you should be aware of three types of costs:

• Purchase cost: A purchase cost includes the amount of money it takes to buy the property before performing any work and additional closing costs.
• Repair costs: Your repair costs include any expenses associated with fixing your purchased property and any additional renovations you perform, such as contract work, cosmetic repairs, and maintenance repairs.
• Loans and closing costs: These are the costs you incur in order to close a loan and purchase a house, such as title insurance fees and loan closing costs.

In some cases, a flipper may be eligible for a 100% hard money financed loan. For most real estate hard money lenders, 100% financing means they will lend a borrower up to 100% of the purchase price. For example, the lender will provide 90% financing for repair costs while the borrower brings the loan and closing costs to the transaction. However, we do things differently at DoHardMoney, offering genuine 100% financing for all eligible borrowers.

We are the industry-leading hard money lenders for new investors and experienced pros. We even accept many borrowers who have been rejected by other funding options. If you have a little experience with real estate but not a lot of success, we provide the tools to help you get there. We have the lending, training, and software to guide you in becoming a successful house flipper.

Another thing that sets us apart is that with most hard money lenders, you’ll be required to bring 20% or more of total project costs to the closing table, often totaling $30k – $50k—even with lenders that advertise 100% financing.

Our 100% financing, on the other hand, means we’ll cover repair and loan/closing costs in addition to the home purchase price for approved investors. 

We’re the only hard money lender that offers true 100% financing. In other words, for great deals, we don’t require our borrowers to bring any cash-to-close. While other lenders won’t take on that much risk, our proven system, risk evaluation, and resources have allowed our borrowers to thrive even without putting any money down. This financing option is even possible for new investors. If you show us a great deal worth investing in, we can help you finance it. This simple philosophy is what makes us different than the competitors.

Along with better funding open to a broader range of investors, we offer additional benefits that other lenders don’t, like providing loan advisors and project managers to help you make the best decisions when flipping homes. 

The main number that you need to keep in mind is 75%.

We are willing to lend up to 75% of a property’s after repair value (ARV)—so if you can fit all your costs under that 75% number, then you’ve got a great shot at 100%  financing.

Here’s how that looks:

Let’s say that you find a property that you believe will sell for $300k once you’ve fixed it up and sold it.

$300,000 x 75% = $225,000

Our main qualifying factor for 100% financing is that you get a great deal on a house. DoHardMoney is a private hard money lender that lends to anyone who meets the criteria. With us, experience is not a factor in who gets 100% money financing.

Our financing means we’ll lend you up to $225,000 for a house with an ARV of $300,000. If you can purchase the house, repair it, and cover closing and loan costs with that amount, you’re likely to qualify for our 100% financing option. 

Let’s break that down a little further. You believe it’s going to cost you $50k to fix it up, and another $20k in closing and loan costs.

That means your target purchase price for that property is $155,000. If you can secure that price, you’ll likely qualify!

(If you’re wondering how it’s possible to get a property for so much cheaper than its ARV, you’ll want to read our Find Sellers page.)

Here’s a real-life example of a deal that one of our members found. These numbers were calculated using our proprietary Advanced Deal Analyzer software:

We don’t require:

• Previous experience
• Credit Score
• Minimum Down Payment

No matter who you are, no matter your past (with very few exceptions), and no matter how much money you have or make, you can go out and find a great deal that we’ll finance 100% of the cost.

Not all loans qualify for 100% financing; about 37% of our borrowers qualify for 100% financing loans. However, it’s still possible to make a profit with hard work. Many house flippers can be financially successful without 100% financing. If your loan doesn’t qualify, don’t turn elsewhere for funds. We still have great options for you.

Only the best deals qualify for 100% financing—37% of our borrowers qualify for 100% financing loans—but that doesn’t mean it’s not a good deal.

In fact, our median cash-to-close number is $2,183—much lower than what borrowers pay with every other hard money lender out there.

If that doesn’t work, we’ll teach you how to find other sources of money is a major part of our system. A significant benefit and draw of our system is educating our customers. This is why we’re great hard money lenders for new investors. We’ll teach you strategies such as:

• Home equity line of credit
• Retirement accounts
• “Love” money