5% down fix and flip: what’s the real cash to close?

The short answer, as of October 2026

• Down payment: $8,000, 5% of the purchase.
• Closing costs: $13,517. The biggest lines are origination ($3,940, 2% of the loan) and title ($3,309).
• Cash to close: $21,517.
• Proof of funds: $46,335, cash to close plus $13,500 of the rehab and $11,318 of interest that stay in your account.

Capital Kings LLC is a broker, not a lender. We compare every file across 400+ lenders and send the term sheet with every fee on it before you sign.

Every dollar, line by line

A $160,000 purchase, a $45,000 rehab and a $290,000 after repair value, 700 credit, first flip, in a major Texas metro. The real term sheet, every line labeled by who gets paid:

Open the full term sheet →

Cash to close$21,517

Proof of funds to show$46,335

Where the $21,517 goes

• Down paymentEquity$8,000
• Appraisal feeAppraiser$550
• Prepaid interestLender$930
• Origination and lender feesLender$4,780
• Broker feeBroker$2,000
• Closing / titleTitle co$3,309
• Property insuranceInsurer$1,948

Proof of funds adds $13,500 of the rehab and $11,318 of interest that stay in your account. The gold broker line is the only money Capital Kings earns.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.

Compare the options

Credit moves the rate and the interest in proof of funds; it barely moves cash to close.

The same deal at every credit score

First flip, $160,000 purchase, $45,000 rehab, $290,000 after repair value. The down payment and the fees barely move with credit; the rate does, and so does the six months of interest in proof of funds. Rates as of October 2026.

And with completed flips

At 700 credit. Completed flips lower the rate; the down payment stays at 5%. Rates as of October 2026.

Where the numbers come from

The loan is $197,000: 95% of the purchase plus 100% of the rehab. The rehab is funded in draws as the work is done, so the first draw at closing covers the purchase and the rest follows inspections. Interest is charged only on what has been drawn, $1,455 a month at the start and $1,886 once the whole rehab is out.

Closing costs on this flip: $3,940 of origination, $840 of lender fees, $3,309 for title, $1,948 for a year of insurance, $550 for the appraisal, $930 of prepaid interest and our 1% broker fee, $2,000. That is $13,517 on top of the $8,000 down payment.

The deal has to fit. 95% of the purchase plus the rehab has to land under 75% of the after repair value, $217,500 here, which leaves $20,500 of room. With an $80,000 rehab on the same house the loan hits the cap, and the down payment grows to $22,500, with $37,132 to close.

5% down is for properties within about 30-40 miles of Houston, Dallas-Fort Worth, San Antonio or Austin, with 590 or higher credit. Outside the major Texas metros, flips usually start at 10% down.

Four things to check

• Budget about 2.7 times the down payment.The closing costs on a small loan are close to the down payment itself.
• Keep proof of funds in the account.The lender checks $46,335, and that money stays in your account through the project.
• Check the cap before you offer.Past 75% of the after repair value, every extra dollar of rehab is cash you bring.
• Ask about the rate after a few flips.Completed flips take the rate down to 10.49% at 10+ flips, with the same 5% down.

Straight answers