For private money lenders

Fix-and-Flip Loan Sizer for Private Lenders

Enter a deal and your program terms to see the maximum loan, the initial advance, the rehab holdback and the cash the borrower needs to close. Every cap is an input, so you can match your own program.

Illustrative sizing based on the program terms entered.

Max loan$234,000

Initial advance$174,000

Rehab holdback$60,000

Loan sizing

Max loan: $234,000Lesser of 90.0% of cost and 70.0% of ARV.
Initial advance: $174,000
Rehab holdback: $60,000
Total loan commitment: $234,000
Borrower cash to close (before closing costs): $26,000

Pricing

Points (2.0%): $4,680
Monthly interest-only payment (fully drawn): $2,145
Binding cap: Max LTC (loan to cost) is the binding cap.

For estimates only. Not financial, tax or lending advice.

How it’s calculated

Max loan is the lesser of two caps: max LTC (loan to cost) times purchase plus rehab, and max ARV percentage times the after-repair value.
Initial advance is the lesser of max purchase LTV times the purchase price and the max loan minus the financed rehab.
Rehab holdback is the rehab budget times the percentage of rehab you finance, limited to what remains of the max loan after the initial advance.
Borrower cash to close (before closing costs) is the purchase price minus the initial advance. Points are charged on the total loan, and the monthly payment is interest-only on the fully drawn amount.
The caps start at 90% LTC, 70% of ARV, 90% purchase LTV and 100% of rehab financed. Change any of them to match your own program.

Fix-and-Flip Loan Sizer questions

What is the difference between LTV, LTC and ARV?

LTV is loan to value, LTC is loan to cost (purchase plus rehab) and ARV is the after-repair value. Fix-and-flip lenders typically cap the loan by more than one of these.

What is the initial advance versus the holdback?

The initial advance funds the purchase at closing. The rehab holdback is the renovation money released in draws as work is completed.

Which cap is binding?

The result tells you which limit set the loan amount: max LTC, max ARV percentage or max purchase LTV. Change that cap to see how the loan changes.

Are these my program terms?

No. The caps start at default values. Change them to match your own lending guidelines. The result is an illustrative sizing based on the program terms entered, not a loan approval.

Size, send and close loans in one place.

Lending Desk turns this kind of sizing into an e-signable term sheet, then runs closing, payments and investor reporting.

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