No Money Down Fix & Flip Loan.

Mortgage and Lending with Webster Bank 49493

The little to no money down hard money rehab loan still remains at the top of the list of loan requests I get (all the time!).

Basically I get a the client who wants me to find them a lender who will buy the property and fund 100% of the rehab expenses.

This is a very tough request to fill because most hard money lenders and finance companies are a little more protective of their money. In this scenerio the borrower is asking the lender to take on all the risk. 

Again, very tough to find a lender excited about this scenerio, especially in today's climate with a lot of borrowers who have a strong down payment or other property to pledge as collateral.

That's pretty much the point of this post, to suggest a few options for the would be property investor who is a little light in the down payment department.

The no money down hard money loan requests that I have seen close have had borrowers share the risk some other way. One common way is if a borrower owns other real estate that has a decent amount of equity in it. A lender can use this as collateral and lend off of this property. 

I've also seen borrowers bring on a partner who has some down payment money or has some property to use as collateral.

Bringing on a partner could just be a temporary option for a borrower. Granted they'll have to split the profits but it allows them to start cash flowing , impress a lender and gain some experience. Do this a few time and now you have some funds to work with and having established relationship with a lender sometimes does translate into getting a short term loan from then with little to no money down.




Posted by


Jason E Potrzeba

Loan Advisor

Acadia Advisory Group

Riverside RI 02915

(401) 580-7612 Cell

(401) 223-4975 Fax

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