Hard money lenders offering 100% financing are private individuals or companies that provide short-term real estate loans—usually for investment properties—without going through traditional banks. These lenders focus on the value of the property rather than the borrower’s credit score or financial history. However, 100% financing (where the borrower puts no money down) is rare and usually comes with stringent conditions.
🔍 What “100% Financing” Really Means
In hard money lending, 100% financing does not typically mean that the lender gives you a loan for the entire purchase price with no strings attached. Instead, it often means:
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You’re getting 100% of the purchase price covered, but only if the loan-to-value (LTV) or loan-to-cost (LTC) ratio is still within their limits.
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You’re required to bring another asset, cross-collateralize another property, or get a partner with equity.
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Some lenders might lend 100% of purchase + rehab costs, but the ARV (After Repair Value) must be high enough to justify it—typically under 70% of ARV.
✅ Typical Requirements for 100% Financing
To qualify, you may need to meet one or more of these:
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Experienced Investor – First-time flippers rarely get full financing.
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ARV-Based Loan – Property must have strong upside after rehab.
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Cross Collateral – Another property is used as security.
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Seller Financing + Hard Money – Combine both to cover the full price.
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Low Purchase Price – Often an off-market or deeply discounted deal.
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Rehab Escrow – Funds are released in draws as rehab progresses.
📊 Example Scenario
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Purchase Price: $100,000
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Estimated Rehab: $30,000
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ARV: $200,000
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Lender offers: 70% of ARV = $140,000
If the total cost ($130K) is below $140K, a lender might finance the whole deal, including rehab, assuming the numbers check out and you meet other conditions.
⚠️ Risks and Costs
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Higher Interest Rates: Often 10–15%+ annually
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Origination Fees: 2–5 points
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Short-Term Loans: Usually 6–12 months
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Strict Terms: Missed payments can lead to foreclosure quickly
🔎 Final Thoughts
Hard money lenders offering 100% financing are not common, and when they do, it’s only under very specific and usually higher-risk conditions. Be cautious, do your due diligence, and always compare multiple offers.
Hard Money Lenders in Phoenix, AZ
When you are searching for hard money loans near me in Phoenix, Scottsdale, Glendale, Tempe, Mesa, Chandler, or Gilbert, Arizona; Brad Loans is Arizona’s most trusted direct hard money lender! We specialize in hard money loans for Fix and Flip, refinancing mortgages with bad credit, business loans secured by real estate, real estate purchases, short sales, and other endeavors with quick turnaround in the Phoenix Valley.
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