Fix and Flip Loan Terms and Requirements

What are the terms of a JDM Capital fix and flip loan?

Up to 100% of cost, no appraisal, closing in as little as 7 days and draws in as little as 24 hours. Those four numbers hold on every deal we write. The full terms are in one table below. Where a figure depends on the deal, you get the real number on a call rather than a posted range you cannot rely on.

Scroll the table sideways to see all of it.

Why several rows say to ask us. The numbers that depend on your specific deal get quoted on the call, because a single posted figure would have to be the worst case and would be wrong for most deals. Send us the address, the purchase price and the rehab budget and you will get real numbers from the person who actually approves the loan. Call or text 267-228-3289, email Josh@JDMCapitalLending.com, or send the deal through the form.

Terms are subject to underwriting and approval and are not a commitment to lend.

What does 100% of cost actually mean?

Loan to cost is the loan divided by your project cost. For us, cost means the purchase price plus the rehab budget. At 100% of cost, the loan covers both of those. It does not cover transfer tax, title, recording, permits, insurance, or the money the property eats while you own it. Those come out of your pocket, and on a Philadelphia deal they are larger than most first time flippers expect. The worked example below adds them up to an actual number.

The part worth knowing when you shop around is that "cost" is not a standard term. Ask any lender what goes into their denominator before you compare their percentage to ours, because the industry uses it three different ways:

• Purchase plus rehab. The narrowest and the most common in this market. It is what we mean.
• Total project cost. Some national lenders include soft costs such as permits, architectural fees and insurance, and sometimes a contingency reserve. A larger denominator makes the same dollar loan look like a lower percentage.
• All in. Broader again, adding closing costs, financing costs, holding costs and even selling costs. This is a way of measuring a project, not a way of sizing a loan, so be careful if a lender quotes against it.

The only number that matters is the dollar figure that lands in escrow. Two lenders can both say 90% and fund amounts that differ by tens of thousands. Ask what the percentage is a percentage of, and ask for the dollars.

Loan to cost is also a different measure from loan to ARV, which compares the loan to the after repair value. Most lenders in this market cap both. Ask for both numbers, because a high loan to cost with a low ARV ceiling can end up funding less than a lower loan to cost with a higher one.

Why no appraisal?

Because we already know what a finished house sells for on your block. We lend in one metro area and underwrite in house, so we do not need a stranger to tell us. An appraisal on a rehab property is a forecast of a house that does not exist yet, and waiting two or three weeks for one is usually the single longest step in a hard money closing. Removing it is most of how a 7 day close is possible.

It is worth knowing that this is not universal. Some competing lenders waive the appraisal only below a loan size threshold, so if you are working on a larger project it is worth asking each lender where their cutoff sits.

How much cash do I need to close?

Roughly $8,750 on the deal below, plus your insurance premium, the title company's own settlement fee and our points. Not a down payment, because the loan covers 100% of purchase and rehab. What you bring is closing costs, and here is every one of them on a $250,000 Philadelphia rowhome with an $85,000 rehab. The loan figures are illustrative and not a quote. Every tax and fee below is a published rate, sourced underneath.

Scroll the table sideways to see all of it.

Then there is the holding cost, which is not cash at closing but is cash every month. Philadelphia real estate tax at 1.3998% on a $250,000 assessment is $3,499.50 a year, about $292 a month, and it accrues from the day you own it. Add insurance and utilities. On a 165 day project that is real money and it is the line people leave out.

Two things change this number a lot. Buy in the suburbs and the transfer tax drops from 4.578% to 2.0%, which on the same $250,000 purchase takes your half from $5,722.50 to $2,500. Buy something bigger and the permit fees climb, because Philadelphia charges by square foot. Send us the address and we will run these against the actual municipality before you offer.

Philadelphia realty transfer tax is 4.578% total, made up of a 3.578% city portion and the 1% Commonwealth portion, effective July 1, 2025 (City of Philadelphia). The city states the tax "is usually split evenly between the buyer and the seller, but this is not a legal requirement", and that it can collect the whole amount from either party, so confirm the split in your agreement of sale rather than assuming it (City of Philadelphia). In the four Pennsylvania collar counties the total is 2.0%, 1% state and 1% local, and the local portion can vary by municipality (Bucks County). Philadelphia real estate tax is 1.3998% of the assessed value set by the Office of Property Assessment, which is not necessarily what you paid, 0.6159% city and 0.7839% School District of Philadelphia (City of Philadelphia). Recording fees are $278.75 for a deed and $248.75 for a mortgage (Philadelphia Department of Records). Construction permit fees are from the L and I schedule PG_012_INF: alterations to a one or two family dwelling are $76 for the first 500 square feet plus $56 for each additional 100, electrical work carries a $63 minimum, and plumbing alterations are $50 for the first seven fixtures (Philadelphia L and I permit fee schedule). The $25 filing fee, the $3 city surcharge and the $4.50 state surcharge are charged on top of the fee schedule and are listed on the city's Get a Building Permit page, along with a 15 business day review for a one or two family alteration. Pennsylvania title insurance is a filed rate set by the Title Insurance Rating Bureau of Pennsylvania, so the premium is effectively the same at every title company in the state, absent a deviation that company has filed and had approved (TIRBOP).

How do rehab draws work?

In stages, with money released as work is completed and funded in as little as 24 hours after inspection. You do not receive the rehab budget at closing. It is held and released in draws as the work gets done, which protects you as much as it protects us, because it keeps the money tied to the schedule. We fund draws in as little as 24 hours from approval.

Review timelines and fees per Philadelphia Department of Licenses and Inspections. Suburban Pennsylvania and South Jersey permits are filed with the individual municipality rather than the county, and timelines vary between them.

Is flipping in this market still working?

By the published numbers, better here than nationally. ATTOM's Q1 2026 Home Flipping Report puts the national gross profit at $66,000 and the national gross return on investment at 25.4%, on 64,348 flips, which was 8.0% of all home sales and the first ROI increase in nearly two years. Pennsylvania came in at a 70.0% gross ROI and $105,000 gross profit. New Jersey came in at 44.9% and $147,250. The Philadelphia metro posted a 62% gross profit margin, among the highest of major US metros.

Two caveats worth stating plainly. Gross profit is before rehab cost, holding cost and selling cost, so it is not your take home. And the national median time to flip was 165 days, which is the number that should drive how long you need the loan for.

Flipping figures from the ATTOM Q1 2026 Home Flipping Report and its state level companion, both published June 18, 2026.

What is happening to resale conditions?

The Philadelphia metro median sold price reached a record $430,000 in June 2026, with a median of 10 days on market, active listings up 12.4% year over year, and inventory still at only 53% of 2019 levels. Investor demand has held up better here than nationally: investors bought 21% of homes sold in the Philadelphia metro in Q1 2026, down just 1% year over year, against a national decline of 6%.

Price, days on market and inventory from the Bright MLS June 2026 Housing Market Report, released July 10, 2026. Investor share from the Redfin Investor Report for Q1 2026, published May 28, 2026.