Only 5% down onTexas fix and flips.

One Houston flip, four ways

A $160,000 Houston purchase with a $48,000 rehab and a $300,000 after repair value, 700 credit, first flip. The same deal on all four structures a 700 borrower can pick, priced by the term sheet the application generates.

100% financing is capped at 70% of the after repair value. On this deal it fits: 70% of $300,000 is $210,000 and purchase plus rehab is $208,000, so you bring $0 down on the purchase, the lender rolls $2,000 of the closing costs into the loan up to the cap, and you bring $13,814 at closing for the rest. 5% down asks for $7,609 more cash but about $2,391 less in fees, at a rate 0.24% higher, 11.74% against 11.5%.

$9,678 more cash at closing than 5% down buys 9.75% instead of 11.74%, about $429 a month less interest once the rehab is drawn. Every figure includes the $5,000 realtor finder’s fee line and the $5,000 earnest money credit, which offset on this deal.

The real term sheet for this flip, four ways

The same $160,000 Houston flip with a $48,000 rehab and a $300,000 after repair value, 700 credit, first deal, on the four programs a 700 borrower can pick. Every fee is on the sheet, and every line says who gets paid: your equity, the lender, the title company, the insurer, the appraiser, the realtor, or the broker.

0% down5% down12.5% down15% down

Open the full term sheet →

Cash to close$13,814

Proof of funds to show$45,314

Where the $13,814 goes

• Down paymentEquity$0
• Appraisal feeAppraiser$550
• Prepaid interestLender$766
• Lender fees, origination and doc prepLender$7,049
• Broker feeBroker$2,100
• Closing / titleTitle co$3,373
• Property insuranceInsurer$1,976
• Realtor finder’s feeRealtor$5,000
• Earnest money creditCredit−$5,000

Fits under the 70% cap: $208,000 of purchase plus rehab against a $210,000 cap, so $0 down on the purchase, the lender rolls $2,000 of the closing costs into the loan (a $210,000 loan, all the room the cap leaves) and the $13,814 you bring is the rest of the closing costs. The gold broker line is the only money Capital Kings earns. The $5,000 realtor line is the agent’s own finder’s fee, paid by you and set between you and your agent, and comes off if nobody brought the deal, and the earnest money you already deposited comes back as the credit under it. Proof of funds is the cash to close plus $31,500, 15% of the $210,000 loan, in reserves that stay in your account (the lender verifies 15% to 20% of the loan; a 401(k) counts at half its vested balance).

These are sample sheets for a made-up borrower, built by the same engine that builds yours. Yours takes about five minutes and doesn’t pull your credit.

What 5% down actually prices at

5% Down prices on two things: your credit and how many flips you have finished. A first flip at 700 or higher credit prices at 11.74% with 2% origination. Completed flips lower it: to 9.99% at 760+ credit after one completed flip, and to 10.74% at 700-759 after 10 or more completed flips.

• 5% of the purchase, not the project. The rehab is funded on top, so on a $160,000 house with a $48,000 rehab the down payment is $8,000.
• The deal has to fit under 75% of ARV. 95% of the purchase plus the rehab has to land under 75% of the after repair value, or the difference comes out of your pocket. Run it before you write the offer.
• Texas title is priced by the state. Owner’s and lender’s policy premiums are promulgated, so the term sheet prices title from your contract and loan amount instead of guessing a percentage.
• Business purpose only. Investment property you plan to renovate and sell, not a home you plan to live in.

Your first flip, on 5% down

Four mistakes first-time flippers make

1. Putting 5% down on a deal that doesn’t fit. If 95% of the purchase plus the rehab is more than 75% of the after repair value, the loan is capped and the gap is cash you bring. Run the cap before you write the offer.
2. Budgeting the down payment and forgetting proof of funds. Lenders verify part of the rehab budget and six months of interest on top of cash to close. On this example that’s $26,140 more in the bank.
3. Handing the lender a lump-sum rehab budget. Draws are released line by line after inspection. An itemized scope of work gets approved faster and funds faster.
4. Putting a 12-month project on a 6-month loan. Fastest Close runs 6 months. Contractors run late and houses sit, so if the timeline is tight, take a 12-month program.

How is a flip loan sized?

$160,000 −$8,000 +$48,000 =$200,000 loan

Purchase, minus 5% down, plus 100% of the rehab, under 75% of the $300,000 after repair value ($225,000).

You bring $21,423 at closing: the $8,000 down payment plus $13,423 of closing costs, and show $47,563 in the bank as proof of funds. No tax returns, W-2s or pay stubs.

The cap is 75% of the after repair value, or 70% on 100% financing, where proof of funds is your cash to close plus 15% of the loan. The rehab money isn’t wired at closing: the lender holds it and releases it in draws as each phase is inspected. Interest-only, 12 months on every program but Fastest Close.

Which loan does your deal need?

Buying without a rehab to finance? See purchase-only loans in Texas, or read purchase-only vs fix and flip loans.

How long does it take to close?

Send the deal in about five minutes with no credit pull, we shop it to the lenders whose programs fit, the appraiser confirms the after repair value and the lender reviews the scope. Closing takes 5-14 days typical, as little as 72 hours on Fastest Close. The purchase funds at the table and the rehab comes back to you in draws.

Before you make the offer