--- title: Best Financing Options for a Fix and Flip Project $75,000 Over Budget description: Discover the best financing options for a fix and flip project $75,000 over budget. Explore practical solutions to secure funds. image: https://www.fctd.com/hubfs/Best%20Financing%20Options%20for%20a%20Fix%20%26%20Flip%20Project%20$75%2c000%20Over%20Budget.jpg --- 2 min read # Best Financing Options for a Fix and Flip Project $75,000 Over Budget [![Picture of Ted Spradlin](https://www.fctd.com/hubfs/Ted%20Spradlin-1.png) Ted Spradlin ](https://www.fctd.com/blog/author/ted-spradlin) : Jul 7, 2024 3:11:34 PM [Fix & Flip Loans](https://www.fctd.com/blog/tag/fix-flip-loans) ![Best Financing Options for a Fix and Flip Project $75,000 Over Budget](https://www.fctd.com/hubfs/Best%20Financing%20Options%20for%20a%20Fix%20%26%20Flip%20Project%20$75%2c000%20Over%20Budget.jpg) This blog post outlines the best financing options for a fix and flip project $75,000 over budget. While obtaining a hard money second mortgage may seem appealing, it's often not feasible. Here’s a look at more likely and effective alternatives. ## **Ask Your Existing Lender to Modify the Note With Additional Rehab Funds** Start by checking with your existing hard money lender. If your property has gone over budget, ask if they can increase the rehab funds, modifying the loan terms to provide an additional $75,000. Explain how this advancement will improve the after-repair value (ARV) of the home, thus enhancing the lender’s security. Be aware that lenders are unlikely to advance new funds if you’ve been late on payments, mismanaged the project, or extended your loan term beyond the original maturity date. ## **Refinance Into a New Fix and Flip Loan** If your current lender won’t provide more funds, consider refinancing into a new fix and flip loan. This option both pays off your existing loan and earmarks $75,000 for rehab completion. A mid-construction refinance requires extensive personal and business financial details for title insurance approval, along with lien releases from contractors and suppliers. Ensure all subs and suppliers have been paid to secure these releases. ## **Access Your Personal Funds (If Available)** The quickest and easiest way to bypass the complexities and delays of external financing is to secure the $75,000 with personal funds from an investment or bank account.  ## **Friends and Family Loan** If personal funds aren’t an option, look to friends and family for a loan. While not everyone has access to $75,000 from friends or family, it may be easier than refinancing or tapping into personal accounts with penalties. ## **Obtain a Hard Money Second Mortgage (Least Likely Option)** While commonly requested, securing a hard money second mortgage is often impractical for several reasons: 1. **High Leverage:** Your first mortgage may already be highly leveraged (e.g., 80% LTV of purchase price + 100% LTC rehab). 2. **CLTV Limitations:** Hard money second mortgage lenders prefer to stay below 65% combined loan-to-value (CLTV), but your current leverage might push it to 80-85% CLTV. 3. **Prohibited Junior Liens:** Your first mortgage note likely prohibits voluntary junior liens. (For more information, see our [Gap Funding](https://www.fctd.com/blog/what-is-gap-funding) blog post.) 4. **Impending Maturity:** If your first mortgage matures soon, second mortgage lenders are hesitant to risk being foreclosed out. 5. **Title Insurance Requirements:** New second mortgages require lender’s title insurance, financial qualification, and lien releases. Given these challenges to get a second mortgage, it's best to focus on the other financing options mentioned above. **Conclusion** Securing additional financing for a fix and flip project $75,000 over budget can be challenging, but exploring options like modifying existing loans, refinancing, accessing personal funds, or seeking loans from friends and family are more feasible and effective than pursuing a hard money second mortgage. [![](https://www.fctd.com/hubfs/Guide-to-Hard-Money-Fix-and-Flip-Financing.jpg) ](https://www.fctd.com/hard-money-fix-and-flip-financing-a-complete-overview) - [Tweet](https://twitter.com/share) [![Best Hard Money Fix and Flip Loans](https://www.fctd.com/hubfs/Best%20Hard%20Money%20Fix%20and%20Flip%20Loans.jpg) ](https://www.fctd.com/blog/best-hard-money-fix-flip-loans) #### [Best Hard Money Fix and Flip Loans](https://www.fctd.com/blog/best-hard-money-fix-flip-loans) ![Picture of Ted Spradlin](https://www.fctd.com/hs-fs/hubfs/Ted%20Spradlin-1.png?width=30&name=Ted%20Spradlin-1.png) [Ted Spradlin](https://www.fctd.com/blog/author/ted-spradlin) : Mar 27, 2024 9:39:28 AM Since 2013, First Capital Trust Deeds (FCTD) has originated 700+ hard money fix and flip loans, particularly for properties in California. This blog... [Fix & Flip Loans](https://www.fctd.com/blog/tag/fix-flip-loans) [Read More](https://www.fctd.com/blog/best-hard-money-fix-flip-loans) [![Fix and Flip Financing: Banks Versus Private Money Lenders](https://www.fctd.com/hubfs/Fix%20and%20Flip%20Financing%20-%20Banks%20Versus%20Private%20Money%20Lenders.jpg) ](https://www.fctd.com/blog/fix-and-flip-financing-banks-versus-private-money-lenders) #### [Fix and Flip Financing: Banks Versus Private Money Lenders](https://www.fctd.com/blog/fix-and-flip-financing-banks-versus-private-money-lenders) ![Picture of Ted Spradlin](https://www.fctd.com/hs-fs/hubfs/Ted%20Spradlin-1.png?width=30&name=Ted%20Spradlin-1.png) [Ted Spradlin](https://www.fctd.com/blog/author/ted-spradlin) : Feb 4, 2024 2:29:29 PM When searching for fix and flip financing as a house flipper or rehabber, it's not a choice between banks and private money lenders. Essentially,... [Fix & Flip Loans](https://www.fctd.com/blog/tag/fix-flip-loans) [Read More](https://www.fctd.com/blog/fix-and-flip-financing-banks-versus-private-money-lenders) [![Hard Money Fix and Flip Financing Pricing Guide](https://www.fctd.com/hubfs/Hard%20Money%20Fix%20and%20Flip%20Financing%20Pricing%20Guide%20(Fall%202020).jpg) ](https://www.fctd.com/blog/hard-money-fix-flip-financing-pricing-guide) #### [Hard Money Fix and Flip Financing Pricing Guide](https://www.fctd.com/blog/hard-money-fix-flip-financing-pricing-guide) ![Picture of Ted Spradlin](https://www.fctd.com/hs-fs/hubfs/Ted%20Spradlin-1.png?width=30&name=Ted%20Spradlin-1.png) [Ted Spradlin](https://www.fctd.com/blog/author/ted-spradlin) : Nov 23, 2020 10:56:48 AM Are you a real estate investor or house flipper looking for better hard money fix and flip financing pricing on your next acquisition? Or, are you... [Hard Money Loans](https://www.fctd.com/blog/tag/hard-money-loans) [Fix & Flip Loans](https://www.fctd.com/blog/tag/fix-flip-loans) [Read More](https://www.fctd.com/blog/hard-money-fix-flip-financing-pricing-guide) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ted Spradlin", "url" : "https://www.fctd.com/blog/author/ted-spradlin" }, "dateModified" : "2024-09-21T22:10:18.405Z", "datePublished" : "2024-07-07T22:11:34.000Z", "headline" : "Best Financing Options for a Fix and Flip Project $75,000 Over Budget", "image" : [ "https://www.fctd.com/hubfs/Best%20Financing%20Options%20for%20a%20Fix%20&%20Flip%20Project%20$75%2c000%20Over%20Budget.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.fctd.com/blog/best-financing-options-fix-flip-project-75000-over-budget", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.fctd.com/hubfs/FCTD%20Logo.png" }, "name" : "First Capital Trust Deeds" } } ```