MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer
You're generally eligible if you're a real-estate investor (first-time or experienced), borrowing through an LLC or entity, on a non-owner-occupied property with enough equity/reserves and a clear exit. Income and DTI don't factor in. The specific numbers — LTV, ARV, points — decide the terms.
Who qualifies
✓ Strong fits
- Experienced flippers — best rates & leverage with a track record
- First-time investors — eligible with a solid deal, reserves & plan
- Self-employed / portfolio investors — no income docs to trip on
- LLCs & entities — the standard borrower vehicle
- Investors racing a deadline — auctions, quick closes, expiring contracts
✗ Weak fits
- Owner-occupant buyers wanting to live in the home
- Borrowers with no equity and no reserves
- Deals with no credible exit strategy
- Long-term holds seeking the lowest rate (use DSCR instead)
First-timer reality check: "No experience" doesn't disqualify you — but it changes the terms. A first flip typically prices 1–2% higher and may cap leverage a notch lower than a repeat borrower with 3–5 completed exits. The fix is to over-prepare the deal: a realistic scope of work, comps that support the ARV, and reserves that cover overruns. Lenders back a strong deal from a new investor over a weak deal from a veteran. See how to strengthen your file →
Eligible property types
| Property | Eligible? |
|---|---|
| Single-family (non-owner-occupied) | Yes — most common |
| Condos & townhomes | Yes |
| 2–4 unit & small multifamily | Yes |
| Distressed / value-add properties | Yes — a core use |
| Light commercial / mixed-use | Often, with a clear exit |
| Entitled land | Some lenders (lower LTV) |
| Owner-occupied primary residence | Generally no |
Eligible deal types
- Fix-and-flip — buy distressed, renovate, sell. The signature use. Fix & flip loans →
- Bridge / quick close — capture a deal now, arrange permanent financing after. Bridge loans →
- Value-add rental — reposition, then refinance into a DSCR hold.
- Auction purchases — bring earnest money; fund the balance fast.
- Cash-out on an investment property — tap equity quickly for the next deal.
What's not eligible
A hard money "no" is almost always about the deal, not you:
- No exit strategy — the one non-negotiable. No path to repay, no loan.
- Thin equity / no reserves — not enough cushion below the ARV cap.
- Owner-occupied primary — falls under consumer rules private lenders don't carry.
- ARV that doesn't pencil — if the after-repair value leaves no margin, the deal fails. Test it in the calculator.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.