Hard Money and Construction Loan Calculator for Investors and Builders

How hard money loan amounts are sized

A fix and flip loan is the lower of two ways of counting the same deal. The first count is the budget: up to 90% of the purchase price, plus up to 100% of the approved rehab budget. The second count is the finished house: 80% of after-repair value is the cap published on the fix and flip loans page. The smaller number is the maximum loan. The homepage also describes fix and flip funding as 100% of renovation costs; the loan-page FAQ is the tighter statement, "up to 100% of the approved budget," and that is the rule this calculator uses.

On a deal bought with room in the appraisal, the purchase-and-rehab count is usually the one that binds. The borrower still brings the unpaid slice of the purchase price to closing. When the appraisal is thin, 80% of ARV is the smaller number. The calculator reduces rehab funding first and shows the rehab shortfall as cash. Only after the rehab advance is gone does the cap cut the purchase advance, which raises the down payment. The calculator uses that published 80% cap.

Two ratios describe the result. Loan-to-cost is the maximum loan divided by purchase price plus rehab. Loan to ARV is the maximum loan divided by after-repair value. Payments are interest-only and accrue on the drawn balance, so the check at closing is smaller than the check once every rehab draw is out. Total interest in the estimate assumes those draws go out evenly across the hold. Most fix and flip programs look for a 620+ FICO, and the cleanest pricing typically wants 660+. The stat card publishes a $100K minimum. The FAQ on that page says minimums are usually $100K–$150K, so a result under $100K is flagged.

Worked example (illustrative)

The figures below are the same ones the calculator opens with. They illustrate the caps. They are not a quote, a rate lock, or an offer to lend. Points and other closing costs are left blank because they are program-specific.

LTC vs LTV vs ARV

The three ratios get mixed together because each one is a loan divided by a version of "what the property is worth." They use different denominators, and this site publishes them on different products. New construction loans are quoted on loan-to-cost. Fix and flip loans are quoted on after-repair value. DSCR loans and bridge loans are quoted on loan-to-value. Bridge loans publish up to 75% and terms of 6–24 months. They do not publish a rate. The ARV calculator and loan-to-cost guide builds the after-repair value from comps and puts LTC, LTV, and the ARV cap side by side.

A ground-up loan can clear 90% of cost and still be high against the finished value. The calculator warns when the loan is over 75% of the as-completed value you enter. No loan page publishes that 75% as a Builders First Funding cap. Spec underwriting says the loan is also limited by a percentage of completed value, and that percentage is program-specific. The warning is a flag to ask, not a maximum.

Costs beyond the rate

The rate is the number that fits in a headline. The hard money construction loans page lists the rest of the bill: origination points, draw inspection fees, title and closing costs, and an interest reserve on some programs. Extension fees apply if the build or the sale runs past the term. Every one of those items is program-specific. The points field on this calculator starts blank for that reason. Enter a figure from a term sheet when you have one, and the cash to close updates. Leaving it blank keeps the estimate from inventing a fee.

Draw inspection fees matter more on a ground-up build than on a light rehab, because a single-family spec build often runs five to eight draws. A holdback of roughly 10% on each draw stays with the lender until the final inspection, so the last slice of the budget arrives at the certificate of occupancy. Budget that timing into the cash you keep on hand. Comparing programs on the interest rate alone is how a builder pays more over a 12 to 24 month build. We compare 100+ lending programs and put the fees next to the rate.

What moves your terms

Track record moves a term sheet more than a credit score does. A first-time flipper can qualify. Without completed projects, the cap is often tighter, the rate is often higher, and the rehab budget gets a closer read. Once a few flips are on the record, the menu improves. On the credit side, most fix and flip programs want 620 or better, and the cleanest pricing typically wants 660 or better. Below 620, options narrow. Stronger deal economics, finished projects, or more equity can keep a file in play.

Ground-up programs talk about completed builds before they talk about FICO. Spec home financing publishes the credit line the other construction pages do not: most spec programs start at 660, the best pricing is at 700+, and some flex to 620 with a lower loan-to-cost and a stronger record. New construction and hard money construction pages do not publish a FICO floor. They publish experience. Less-experienced borrowers typically land at 75–85% of cost. First-time builders on spec and hard money construction programs are often around 60–70%, with a licensed general contractor who has verifiable work. Some new-construction programs cap a first project at 60–65% on that same basis. The loan-to-cost slider runs from 60% to 90% so those published bands are all available. The default of 85% sits at the top of the less-experienced band.

A line-item budget with real bids prices better than a per-square-foot guess. Spec programs want a contingency, typically 5–10% of hard costs, and the calculator defaults to 10% of hard costs. Comps, days on market, and the retail price still decide how large the loan can be against the finished house.

Exit: sell or refinance into DSCR

The short-term loan is built to be replaced. Sell the finished house and the sale pays it off. Or stabilize the rent and refinance into a DSCR loan, which qualifies on the property's rent rather than on W-2s or tax returns. DSCR loans start at 5.99%, run 30-year fixed, and publish up to 80% on a purchase. Cash-out loan-to-value is program-specific. It moves with credit, the DSCR ratio, and seasoning. The preview on this page shows 80% and 75% of value as illustrations. The 80% row uses the purchase maximum. Neither row is a cash-out cap. Refinance closing costs are not subtracted, because the site does not publish a standard refinance cost.

The BRRRR method financing guide is the long version of that sequence: buy, rehab or build, rent, refinance, repeat. The refinance itself is a DSCR cash-out refinance. Most cash-out programs look for about six months of ownership. Rate-and-term refinances typically have no seasoning requirement. Run the rent through the DSCR calculator. The link under the preview opens that calculator with this property's value filled in, and the loan amount there starts at 80% of value.

If the rehab, the lease-up, or the build runs past the short-term maturity, a bridge loan is the usual hold. Bridge loans go up to 75% loan-to-value, run 6–24 months, and are interest-only. A bridge from a flip into a DSCR refinance is often about 90–180 days. Spec programs also offer 3–6 month extensions for a fee, which can cover a listing that needs more time than the original term. Plan the exit before the first loan closes, and choose a term with slack after the last draw.

FAQ

Builders First Funding is a loan broker, not a direct lender. This calculator gives estimates for illustration only and is not a loan offer or commitment. Rates, leverage, fees, and terms are program-specific and depend on the property, project, borrower experience and credit, and lender approval.