Yes, Trato's Fix & Flip program can fund 100% of approved rehab costs, but the total loan remains limited by leverage, ARV, underwriting, and the draw process.
The short answer
The program combines up to 95% of the purchase with 100% of approved rehab, subject to 75% and underwriting.
The borrower still needs purchase equity, closing costs, points, reserves, and cash for overruns or ineligible items.
What 100% Rehab Funding Means
Full rehab funding means the approved renovation allocation can equal the accepted rehab budget within the overall loan structure. It does not mean the lender pays every project expense or advances the entire budget as cash at closing.
Underwriting reviews whether each line item is reasonable, connected to the property plan, and supported by contractor documentation. Work outside the approved scope, unsupported costs, and overruns remain the borrower's responsibility.
The purchase advance, total project cost, appraised ARV, borrower liquidity, and other conditions still determine final proceeds.
See how rehab funding fits the full program on our fix and flip loans page.
The Purchase Equity Requirement
The purchase side can be financed up to 95% under the current program, subject to underwriting. That means the borrower generally brings purchase equity even when the approved rehab allocation is fully funded.
Cash to close also includes more than project equity. Points, title charges, insurance, prepaid items, required reserves, and other closing costs can add to the amount needed.
The exact contribution depends on the submitted deal. Maximum leverage is a program limit, not an automatic structure for every property or borrower.
The ARV Cap
The ARV cap can reduce the loan below the cost-based amount. The current Fix & Flip maximum is 75% of supported after-repair value, subject to underwriting.
Illustrative only, not a quote. A $300,000 purchase and $100,000 rehab budget produce a $385,000 cost-based loan using the program's typed percentages. A $550,000 ARV produces a $412,500 cap, so the lower $385,000 amount controls.
If supported ARV were lower or accepted costs changed, borrower cash would increase. An investor's projected resale price does not replace the appraisal.
Why Funds Come Through Draws
Rehab funds come through draws so releases correspond to completed, eligible work. At closing, the approved budget is reserved. The borrower completes an agreed stage, submits documentation, and receives reimbursement after inspection and review.
This structure protects the project budget, but it also means the borrower may need working cash to start construction and pay costs before reimbursement. Contractor expectations should be aligned with the draw schedule.
Accurate invoices, progress photos, lien records, and change orders help requests move efficiently. Exact requirements are stated in the loan documents.
Plan for Costs the Loan Does Not Add
Plan for costs the loan does not automatically add, including overruns, expanded scope, carrying expenses, and items outside the approved budget. A hidden condition or material price change does not by itself increase proceeds.
Maintain contingency liquidity and update the budget as work progresses. Raise material changes before committing funds because they can affect value, schedule, and draw eligibility.
Full approved rehab funding can preserve capital, but it does not remove the need for borrower equity and disciplined project management.
Common Questions
Frequently Asked Questions
No. Approved rehab funds are reserved and released through draws after eligible work is completed and inspected.
No. Purchase equity, closing costs, points, reserves, overruns, and ineligible costs may require borrower cash.
Yes. The applicable cost and ARV limits work together, and the lower supported result controls.
The borrower pays overruns. The approved loan does not increase automatically when project costs rise.