On a Sacramento hard money loan, your down payment is set by two limits: how much the lender will lend against the property's as-is value, and how much it will lend against your total project cost. At AIRG that means up to 70% of as-is value and up to 85% of cost on hard money loans, so a buyer typically brings 15% to 30% of the deal, plus closing costs.
By Gary Burmaster, California real estate salesperson and CEO of All Inclusive Realty Group, Inc. Updated October 25, 2026.
Investors ask "how much do I need to put down" as if there is one number. There is not. The cash you bring depends on what you are buying, what it is worth today, how much rehab it needs and how you plan to exit. This guide walks through the math the way a Sacramento investor would see it on a real term sheet, using the published limits on AIRG's Direct Lending page.
What determines the down payment on a hard money loan?
Hard money lenders size loans on the property and the plan, not on your W-2. The three numbers that drive your cash requirement are:
- Loan-to-value (LTV). The loan as a share of what the property is worth as-is, today, before any work.
- Loan-to-cost (LTC). The loan as a share of what you will spend: purchase price plus the rehab budget.
- The exit. How the loan gets paid off: a sale after the rehab, or a refinance into long-term financing. A weak exit means a smaller loan.
Most hard money lenders apply both LTV and LTC to a deal and lend the lower result. Confirm on your own term sheet how a specific lender applies them.
What are AIRG's published hard money and bridge limits?
| Product | Term | Loan size | Maximum leverage |
|---|---|---|---|
| Hard money loan | 6, 12 or 18 months | $100K to $1M | Up to 70% of as-is value; up to 85% LTC |
| Bridge loan | 3 to 12 months | $150K to $800K | Up to 65% LTV; exit by refinance or sale |
Every AIRG loan is a business-purpose loan secured by a first deed of trust on California investment property in the Sacramento area and El Dorado, Placer, Sutter, Yolo, Solano and San Joaquin counties. Owner-occupied homes are not eligible. Pricing for each deal is quoted on its term sheet.
How much cash do I need to buy a Sacramento rental with hard money?
Take a straight purchase with no rehab. If the purchase price equals the as-is value, a loan at 70% of value leaves 30% for you to bring, plus closing costs.
- Purchase price and as-is value: $400,000
- Maximum loan at 70% of as-is value: $280,000
- Your down payment: $120,000, or 30%, plus closing costs
If you buy below value, the math improves. A property worth $400,000 as-is bought for $340,000 could support the same $280,000 loan against value, which would leave $60,000 of the price for you, before any cost-based limit is applied. Off-market and distressed purchases are where this happens most often in Sacramento.
How much do I need to put down on a fix-and-flip?
When the deal includes rehab, the cost limit matters. At up to 85% LTC, the lender can cover most of purchase plus rehab, and you bring the rest.
- Purchase price: $300,000
- Rehab budget: $60,000
- Total project cost: $360,000
- Maximum loan at 85% of cost: $306,000
- Your share at 85% LTC: $54,000, or 15% of total cost, plus closing costs and reserves
Then check the value side. If the same house is worth $340,000 as-is, 70% of value is $238,000, which is lower than $306,000. If a lender applies the lower of the two, your cash requirement rises to $122,000. This is why an accurate as-is value and a credible rehab budget matter more than anything else you bring to a hard money conversation.
How much do I need for a bridge loan?
A bridge loan carries you between two events, such as buying the next property before the last one sells, or holding a rental until long-term financing is in place. At up to 65% LTV on a $500,000 property, the maximum bridge loan is $325,000, so you would bring or already hold $175,000 of equity, plus closing costs. Bridge borrowers often already own the property or have equity in another asset, which changes how the cash shows up.
What else counts toward the cash I need to close?
- Closing costs. Title, escrow, recording and lender charges shown on your term sheet and escrow estimate.
- Reserves for the hold. Monthly payments, insurance, utilities and property tax until the sale or refinance.
- Rehab overruns. Older Sacramento housing, especially pre-1978 homes in neighborhoods like Oak Park, Del Paso Heights and North Highlands, can surface lead paint, sewer line and electrical work after demo starts.
- Insurance during construction. A vacant or under-renovation property needs the right policy before funding.
How can a Sacramento investor lower the cash needed?
- Buy below as-is value. The discount at purchase is the most direct way to reduce your cash in a value-based loan.
- Bring a tight rehab scope. A line-item budget with contractor bids supports a stronger cost-based loan.
- Show a confirmed exit. A realistic resale comparison or a lined-up refinance makes the deal easier to approve.
- Use equity you already own. Additional collateral or an existing rental can reduce the cash you need to bring, if the lender accepts it.
How fast can an AIRG hard money loan close?
Send the deal and AIRG returns a term sheet in 24 to 48 hours. Each loan is reviewed in-house on the property's as-is value, your equity and a confirmed exit, with minimal income paperwork. Closing happens through escrow in 7 to 10 days. Applying is not a commitment to lend, and any loan is subject to final underwriting approval.
Send your deal and get a term sheet in 24 to 48 hours
Frequently asked questions
What is the minimum down payment on a hard money loan in Sacramento?
It depends on value and cost. With AIRG's published limits of up to 70% of as-is value and up to 85% of cost, investors typically bring 15% to 30% of the deal plus closing costs, depending on which limit governs.
Is the down payment based on purchase price or as-is value?
Both can matter. Loan-to-value is measured against today's as-is value and loan-to-cost against purchase price plus rehab. Buying below as-is value can reduce the cash you need.
Can I get a hard money loan on a home I will live in?
Not from AIRG. AIRG makes business-purpose loans on investment property only. Owner-occupied homes are not eligible.
Do I need to show income for a hard money loan?
AIRG underwrites on the property's as-is value, your equity and a confirmed exit, with minimal income paperwork. Any loan is subject to final underwriting approval.
What counties does AIRG lend in?
The Sacramento area plus El Dorado, Placer, Sutter, Yolo, Solano and San Joaquin counties, on California investment property secured by a first deed of trust.
This article is for informational and educational purposes only. It is not a commitment to lend, and any loan is subject to final underwriting approval. Examples are illustrations, not quotes.
