How Much Cash Do You Need to Close a Fix & Flip or Construction Loan?

Short answer: Cash to close is the gap between your total project cost and your loan amount, plus any required reserves — typically 10-50% of total project cost depending on the program and your qualifying tier.

What “total project cost” includes

For Fix & Flip and Ground-Up Construction, total project cost isn’t just the purchase price (or land value) — it’s that plus your full rehab or construction budget. Your loan amount is capped as a percentage of that total cost (or of the after-repair/completed value, whichever is lower), and the difference is what you bring to closing.

The pieces that make up cash to close

• Down payment — the gap between total project cost and your approved loan amount
• Reserve funds — several months of payments, sourced and seasoned, required by most programs as a cushion
• Closing costs — title, appraisal, and lender fees, similar to any real estate closing
• Draw-related fees — inspection, wire, and/or title fees are typically deducted from draws as the project progresses, rather than paid up front, but it’s worth budgeting for them

Why your qualifying tier matters here

The same deal can require meaningfully different cash to close depending on your credit score and experience level, since both drive the leverage tier you qualify for. A stronger tier means a smaller gap between cost and loan amount — which means less cash out of pocket.

Bridge and Swifty50 are simpler

Since there’s no rehab or construction budget involved, cash to close on a Bridge or Swifty50 loan is closer to a traditional purchase: the gap between the property’s value and your approved loan amount, plus reserves and closing costs.

Estimate your specific number

Enter your deal into the calculator to see an estimated cash-to-close figure based on your program, credit score, and experience level.