1) Confirm the deal pencils (70% rule). 2) Prove a credible exit. 3) Plan equity & cash to close. 4) Build 6–12 mo reserves. 5) Prepare package & entity. 6) Shop across lenders. 7) Order valuation & close (5–14 days). See Requirements.
On this page
The 7 steps to qualify
Confirm the deal pencils
As-is value, ARV, rehab vs the 70% rule. Purchase under (ARV×70%) − rehab. Calculator →
Prove a credible exit
Sell the finished property or refinance into a DSCR loan. No exit, no loan.
Plan equity & cash to close
Equity gap under the ARV cap + points + closing. Loan = lesser of ARV cap and cost cap.
Build your reserves
6–12 months liquid for payments & overruns — and it lowers your rate.
Prepare package & entity
Contract, scope of work, proof of funds, resume, LLC docs. No tax returns. Process →
Shop the deal across lenders
Same deal can price 2–4 points apart — have the file shopped for best rate, points & draws.
Order valuation & close
Appraisal or BPO confirms as-is + ARV, then fund — often 5–14 days.
Strengthening a weak deal or file — the routing table
| If your weak spot is… | Route around it by… |
|---|---|
| Deal barely fails the 70% rule | Renegotiate price, trim rehab, or re-check ARV comps |
| High LTV pricing | Bring more equity to drop into a better tier |
| Thin reserves | Add liquid funds or reduce loan/rehab scope |
| First-time investor overlay | Over-prepare: tight scope, strong comps, extra reserves |
| Weak exit | Line up a DSCR refi pre-approval or firmer resale comps |
| Credit-sensitive exit (refi) | Improve credit now so the takeout loan qualifies later |
| Property in a soft market | Lower LTV, or pick a stronger-resale location |
Hard money qualifying FAQs
First step to qualify?
Confirm the deal pencils against the 70% rule — purchase under (ARV×70%) − rehab.
Need income or good credit?
No income docs; many lenders have no minimum score. It's about the property, equity, reserves & exit.
How much cash?
Equity gap under the ARV cap + points + closing, plus 6–12 months reserves.
Can a first-timer qualify?
Yes — strong deal, clear exit, solid reserves. A first flip may price ~1–2% higher.
Weak deal or file?
Route around it — lower LTV, tighten ARV, add reserves, firm the exit, or renegotiate price.
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.