Please ensure Javascript is enabled for purposes of website accessibility

Borrowing Up to $1 Million With Nothing Down? It's Now Possible

By Laura Agadoni – Dec 9, 2021 at 7:00AM

Key Points

  • You can borrow up to $1 million with no money down through a new program.
  • If you're unfamiliar with hard money lenders, you should understand the pros and cons.
  • This marketplace could be the solution for your next real estate deal.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Need money for your next real estate deal? There's a new loan program you might want to check out.

Real estate is a popular investment these days. But if you want to buy a property to flip or rent, the price of entry has become much higher since the pandemic began. Blame it on a shortage of housing, increased demand, record-low mortgage rates, and inflation. The point is, the deal you might have been able to make pre-pandemic could now be out of reach. But what if you could borrow up to $1 million with no money down? Would you do it? If so, read on. is ready to find you a loan isn't a lender. Rather, it's a marketplace that connects borrowers with lenders -- and there are 100 lenders on the platform. As the name suggests, the company works with hard money lenders and lenders in the private investment space, as well as with clients in all 50 states and Puerto Rico.

The advantage of using a marketplace like this is that you'll have a better chance of connecting with a lender most likely to approve your loan.

The news

Although has been around for five years, it's offering a new loan program that's garnering lots of attention; namely, because the program enables real estate investors to borrow up to $1 million for various types of real estate deals. Borrowers can get fix-and-flip loans, fix-and-rent loans, and long-term rental loans -- all with no money down.

Says CEO Mike Sarrage: "Many successful investors often run into a cash crunch because their capital is tied into other projects.'s new zero-down lending program allows qualified borrowers to finance up to 100% of their real estate investments."

Two people renovating furniture for a house.

Image Source. Getty Images.

About hard money lenders

If you're unfamiliar with hard money lenders, you should understand the pros and cons. The biggest advantage is the loan is secured by the real estate. The borrower, therefore, doesn't need to go through the often rigorous and lengthy process required when applying for a conventional loan through a bank. Hard money lenders typically act fast. Borrowers often get their money in one to two weeks.

The biggest disadvantage is the high interest rates borrowers are charged, which can range from 10% to 18%, with origination fees between one and three points.

Hard money loans are typically short-term loans (e.g., one to three years). Borrowers usually pay the interest on the loan with a balloon payment at the end of the term. For flippers, the sale of the house should pay the loan. And for long-term rental loans, the borrower would need to get a traditional mortgage to pay the hard money loan.

The details

To qualify for a zero-down-payment loan through, borrowers need a FICO credit score of at least 700 and must have a minimum annual income of $125,000. This loan product is broken into two parts: a down payment loan based on the borrower's creditworthiness and a traditional hard money loan that's backed by the property being financed. The combined loans borrowers can get range from $200,000 to $1 million. could be the solution for your next real estate deal, but it's imperative you understand the terms of your loan and pay it back on time; otherwise, the hard money lender will take your property.

The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.