Start with the right loan path
New Silver lists a fix-and-flip loan for buying and renovating a property, and a Rent/DSCR loan for a stabilized property. Its getting-started guide describes the rehab path as a short-term loan with a sale or refinance exit, while the rental product is intended for a property that no longer needs rehab. Do not assume the first loan automatically becomes the second one; ask for a separate refinance scenario if your plan is to hold.
In this guide
| Question | Purchase + rehab | Stabilized rental |
|---|---|---|
| What is the money for? | Acquisition and approved renovation work | Buying or refinancing a rent-ready investment property |
| How do you exit? | Sell, refinance, or repay at maturity | Make payments under the long-term loan terms |
| What drives the analysis? | Purchase price, rehab scope, ARV, liquidity and timeline | Property income, value, debt service and borrower profile |
| Key question | Can you finance the work between reimbursement draws? | Will the rent support the actual payment and reserves? |
For a BRRRR project: model both legs. A short-term rehab loan may get the project to stabilization, but the refinance depends on the later appraisal, rental income, lender requirements and market rates. Use our BRRRR numbers guide and DSCR calculator for the second leg.
What New Silver currently advertises
On its fix-and-flip page, New Silver advertises rates of 8.5%–11%, origination of 1%–1.75%, up to 90% loan-to-cost, up to 75% of after-repair value, a term up to 18 months, and loans starting at $100,000. These are published program figures as checked September 29, 2026, not a quote or a promise of approval. Your experience, credit, location, property and deal may change the offer. Promotional rates can change.
The same page lists residential one-to-four-unit properties, condos and townhomes, says the property must have at least $100,000 as-is value and $150,000 after-repair value, and says it does not finance rural property. New Silver's other help pages give additional experience-based requirements, so a headline minimum credit score alone is not enough to determine eligibility. Check the specific address and borrower profile before paying for an appraisal or assuming the deal fits. See New Silver's credit guidance and locations page.
The rehab draw detail that can strain your cash
“Up to 100% of construction” does not mean the full renovation budget is handed to you at closing. New Silver's draw instructions say draws reimburse completed work after inspection. They also state that an inspection fee is deducted from each draw. Ask whether contractors will require deposits, how quickly a completed draw is paid, whether materials stored on site qualify, and how much cash you need to float the first phase.
For example, if the first phase of work requires $18,000 before you can request reimbursement, that amount is a working-capital need, even if an approved draw later repays it. It is separate from your down payment, closing costs and contingency. Build the schedule around the slowest plausible inspection and reimbursement cycle, not the fastest advertised closing date.
A worked deal: why the loan amount is only one number
This example is entirely hypothetical. It is a way to test a deal, not an illustration of a New Silver approval or quote.
| Project assumption | Amount | What to verify |
|---|---|---|
| Purchase price | $160,000 | Appraised as-is value and purchase eligibility |
| Rehab budget | $40,000 | Approved scope, draw timing and contractor deposits |
| Hypothetical total loan | $176,000 | Example only: $136,000 acquisition plus $40,000 rehab reserve; actual underwriting may differ |
| After-repair value | $270,000 | Independent appraisal, not the investor's estimate |
| Initial down payment | $24,000 | Purchase price minus $136,000 initial acquisition funding |
| Cash buffer for first draw | $18,000 | Illustrative liquidity needed until work is inspected and reimbursed |
The $176,000 proposed loan equals 88% of the $200,000 purchase-plus-rehab cost and about 65% of the $270,000 estimated ARV. Being under published maximum ratios does not mean approval; the lender can size the loan differently, hold back funds or require more cash. At a hypothetical 10% annual interest rate, interest on a fully drawn $176,000 balance is about $1,467 per month. The actual payment changes with the outstanding balance and loan documents.
Now test the flip exit. Add an illustrative $8,000 in closing and financing costs, $6,000 in non-debt carrying costs, $14,700 in interest (a simplified ten-month full-balance estimate) and $8,000 contingency. The all-in cost is $236,700. If the property sells for $270,000 and selling costs are 6% ($16,200), the modeled spread is only $17,100 before tax. A lower sale price, longer hold or cost overrun can erase it. The $8,000 transaction-cost line is assumed to include points and closing fees; do not add the same fees twice.
If you plan to hold, do a different exit calculation: estimate the refinance appraisal, maximum proceeds, payoff of the short-term loan, new closing costs, property-level cash flow and new payment. A $270,000 appraisal at a hypothetical 75% refinance LTV gives $202,500 of gross proceeds; paying off $176,000 leaves $26,500 before refinance costs and reserves. It does not necessarily return all of your original cash, and an appraised value or loan offer is never guaranteed.
Change the assumptions before you compare lenders.
Start with the free rehab budget calculator, then test the rental exit with the DSCR calculator. Put the actual written quote beside your estimates.
Compare total cost, not just the advertised rate
New Silver's closing-cost guide lists origination along with underwriting, legal, title/insurance review, prepaid interest and third-party charges for fix-and-flip loans; it says costs vary by transaction and may change. Ask for an itemized written estimate with the same purchase price, rehab scope, assumed closing date and projected payoff date from each lender.
- Cash to close: down payment, points, lender and third-party charges, prepaid interest, escrow and required reserves.
- Cost to carry: payment while renovating, whether interest is charged on undrawn rehab funds, draw inspection fees and any minimum interest.
- Cost to exit: payoff amount, extension fees, prepayment provisions, refinance costs and what happens if the project takes longer.
- Operational timing: appraisal, contractor documents, draw inspection, reimbursement and any conditions that could delay closing.
A quote with a lower interest rate can still cost more if its points, fees or required cash are higher. Compare total dollars through your expected payoff date, and rerun the numbers with a three-month delay.
When New Silver may or may not fit
- Potential fit: a qualifying one-to-four-unit purchase with a clear renovation budget, enough liquidity to start work, and a credible sale or refinance plan.
- Check carefully: a BRRRR deal in a lower-value market, a property near the program minimum, an inexperienced borrower, or a project whose cash is tied up in several renovations at once.
- Likely different path: a rent-ready property needing long-term financing should be compared under its rental/DSCR product, not priced as a fix-and-flip solely because the lender offers both.
- Ask before applying: rural classification, entity/guarantor requirements, state and property eligibility, and whether the affiliate landing page offers the program you need.
Questions to send a loan advisor
- Does this specific address and property value qualify for your fix-and-flip or rental program?
- How much cash must I bring at closing and how much should I have available before the first rehab draw?
- What is the full fee breakdown, including draw, extension and payoff charges?
- What is the maximum loan based on cost and ARV in my scenario, and what can reduce it?
- When does interest start on each portion of the loan?
- If I plan to rent and refinance, what must be complete before a rental loan can close? Are seasoning, lease or appraisal requirements involved?
- What happens to the loan if the rehab or refinance takes three months longer than expected?
See whether New Silver can quote your deal.
Use the questions above and compare its written terms with at least one other lender. Applying or requesting terms does not guarantee approval or a particular rate.
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Quick answers
Is a New Silver rehab loan the same as a long-term rental loan?
No. New Silver markets short-term fix-and-flip financing for renovation projects and a separate Rent/DSCR loan for stabilized properties. If holding is your plan, underwrite the refinance as a separate transaction.
Does “100% rehab financing” mean no cash is needed for construction?
No. New Silver's draw guide describes reimbursement for inspected completed work. You may need cash to begin work and pay contractors while waiting for the draw.
Can I use it for a small rural rental?
Do not assume so. New Silver's fix-and-flip page states minimum loan and property values and says it does not finance rural property. Ask about the specific address and loan product before spending money on due diligence.
Are the published rates what I will pay?
They are advertised ranges, not a personal quote. Request an itemized term sheet and compare cash to close, payment, total fees and exit cost.
Sources and review note
Program descriptions were checked September 29, 2026 against New Silver's fix-and-flip page, getting-started page, draw guide, closing-cost guide and rental loan information. Some company pages describe different experience thresholds or terms; the current written offer for your deal controls.