Fix and Flip down payments – all you need to know

You are fixing and flipping real estate. It might be your first time, your fifth, or you might be a seasoned pro. Required down payments for fix-and-flip loans vary from person to person and property to property, so here is a guide that explains how to budget your down payments for your next fix and flip project.


A first-time flipper is going to have a larger down payment than a seasoned pro. That makes sense. Lendmarq has been in the business for quite some time, and the vast majority of projects that experience difficulty are for borrowers that are still learning because they are only on their first or second flip. Where a pro might make a down payment of 10%, a first-time flipper might make a 25% or even a 30% down payment, depending on the project or the circumstances. Lendmarq will be happy to discuss any deal and give clear and detailed disclosure about your down payment and all of your costs.

Property Type

A single-family home is the “easiest” and safest type of property to flip. There are multiple financing options available for buyers once the flip is complete. Condos, multi-family, or mixed-use properties are a little more tricky and require more experience to get things right. Down payments on these properties are typically increased by 5% to account for the additional risk.  

Type of Flip

Are you buying a “down the middle” flip that requires light cosmetic repairs and some curb appeal? Or are you purchasing a complex flip that requires a lot of rehab or the addition of square footage? The more complex the flip, the larger the down payment will need to be.

Size of the Flip

Many flippers want to graduate to the next level of their investing. Bigger properties mean larger profits, right? Maybe, but it also means greater risk. Have you had your eye on a luxury property on the beach that you know will make you half-million dollars selling? Expect to make a larger down payment on that acquisition. Larger properties typically have longer marketing lead times and present lenders with additional factors to consider when making the loan.

Total Cost

Finally, many lenders advertise 90% LTV loans with 100% of rehab. Some lenders do indeed offer this for highly experienced flippers, although many come with their downsides. Lendmarq never exceeds 90% total loan cost on any project. So if you want to finance your rehab with the flip and you qualify for 90%, your down payment will likely range from 11% to 12% to factor in total project cost. When we issue term sheets at Lendmarq, you will see these numbers illustrated in detail and in full. This way, we can mutually understand the deal and make sure there are no surprises.

We could write several more pages on this topic! Hopefully, this helps jumpstart your understanding that some borrowers have larger down payment requirements than others. The typical range of a down payment falls between 10% to 25% at the time of purchase, but some properties and some deals might require more. The good news is that with Lendmarq, you will never find out at the last minute!