Fix-and-Flip LTC & 70% ARV Cap Calculator
Compare your maximum loan under the lender Loan-to-Cost (LTC) limit versus the After-Repair Value (ARV) cap, calculate required borrower down payment, map out your 4-stage rehab draw schedule, and project net flip profit.
LTC vs. ARV Sizing & Borrower Cash to Close
| Total Project Cost (Purchase + Rehab) | $400,000 |
| Max Loan Allowed by LTC (85% of Cost) | $340,000 |
| Max Loan Allowed by ARV Cap (70% of ARV) | $364,000 |
| Initial Closing Advance (Toward Purchase) | $260,000 |
| Rehab Holdback Escrow (100% of Rehab Budget) | $80,000 |
| Borrower Down Payment + Equity Gap | $60,000 |
| Origination Points + Est. $3,600 Closing Costs | $10,400 |
| Total Borrower Cash Required at Closing | $70,400 |
| Estimated Interest Carry + Resale Closing Costs | $48,200 |
4-Stage Rehab Holdback Draw Schedule & Inspection Milestones
Bridge lenders hold 100% of your renovation budget in construction escrow and reimburse completed work in milestone draws following a $150 to $250 third-party draw inspection.
| Draw Milestone | Scope of Completed Work | % of Rehab Escrow | Draw Release Amount | Cumulative Disbursed |
|---|---|---|---|---|
| Draw 1 | Demolition, dumpster, framing, foundation & roof dry-in | 25% | $20,000 | $20,000 |
| Draw 2 | Rough plumbing, electrical, HVAC, insulation & drywall hang/tape | 25% | $20,000 | $40,000 |
| Draw 3 | Cabinets, countertops, tile, flooring, interior doors & prime paint | 25% | $20,000 | $60,000 |
| Draw 4 (Final) | Fixtures, appliances, final punchlist, landscaping & permit sign-off | 25% | $20,000 | $80,000 |
Smart Bridge Lender & Rate-Match Engine
Filter verified national and regional bridge lenders by loan purpose, asset class, state, loan size, and borrower credit tier in 30 seconds.
Step 1 of 5: Select Your Primary Bridge Loan Purpose
Step 2 of 5: Property Asset Class & State Location
Step 3 of 5: Target Bridge Loan Amount
Step 4 of 5: Sponsor FICO Score & Track Record
Step 5 of 5: Your Top Underwriting Matches
Showing verified lenders matching your deal criteria, sorted by leverage and underwriting fit.
Kiavi
Best for Tech-Enabled Fix & Flip and Fast Closings
Easy Street Capital
Best for Low-FICO Investors & 48-Hour Term Sheets
Lima One Capital
Best for Heavy Rehab, Ground-Up & Multifamily Bridge
Optional: Email This Deal Sizing & Lender Match Sheet
Save a copy of your underwriting parameters and matched lender checklist to your inbox for your LLC deal folder.
How Bridge Lenders Size Fix-and-Flip Loans: LTC Cap vs. ARV Cap
Every institutional fix-and-flip bridge lender underwrites your maximum loan amount using two simultaneous ceiling tests: Maximum Loan-to-Cost (LTC) and Maximum Loan-to-After-Repair Value (LTARV). Your approved bridge loan is always the lesser of those two numbers.
Max Loan by LTC = (Purchase Price + Rehab Budget) x Max LTC % (usually 85% to 90%)Max Loan by ARV = Projected After-Repair Value x Max ARV % (usually 70% to 75%)Binding Bridge Loan = MIN(Max Loan by LTC, Max Loan by ARV)
Why the 70% ARV Cap Catches Unprepared Flippers
Suppose you buy a distressed single-family property for $350,000, budget $90,000 for renovation ($440,000 total project cost), and the appraiser values the finished home at $550,000 ARV:
- At an 85% LTC limit, the loan would be
$440,000 x 85% = $374,000. - At a 70% ARV cap, the maximum loan allowed is
$550,000 x 70% = $385,000. Here, LTC is the binding cap ($374,000), and you bring $66,000 (15% of cost) plus closing fees. - However, if the appraisal comes back at $500,000 ARV, the 70% ARV cap drops the max loan to $350,000. Because the lender still holds $90,000 in rehab escrow, your initial purchase advance drops to $260,000, requiring you to bring $90,000 in down payment equity at closing.
How the 4-Stage Rehab Holdback Draw Process Works
Even when a bridge lender advertises "100% rehab financing," those renovation funds are held in an escrow holdback account and released on a reimbursement basis. To keep your project moving without a liquidity crunch, plan your contractor payments around four standard draw milestones:
- Initial Mobilization (Borrower Working Capital): You or your general contractor fund initial demolition and rough materials before submitting Draw 1. Lenders typically require you to have 15% to 25% of the rehab budget in liquid reserves at closing.
- Draw 1 & Draw 2 (Structural & Mechanicals): Once framing, roof dry-in, rough plumbing, HVAC, and electrical pass municipal inspection, you upload photos or schedule a third-party inspector ($150 to $250 fee). Funds wire in 48 to 72 hours.
- Draw 3 & Draw 4 (Finishes & Final Sign-Off): Released upon installation of cabinets, countertops, flooring, fixtures, and final municipal permit sign-off.
Compare verified fix-and-flip lenders side by side in our Best Fix and Flip Bridge Loan Lenders for 2026 guide or read our head-to-head Kiavi vs. Lima One Capital review.