New Jersey flips are larger than most. ATTOM's Q2 2026 figures, on our 2026 financing data page, show 1,589 flips in the state with a typical gross profit of $145,000, the highest of the states we list, and a gross return of 40.3%, down from 43.6% a year earlier. ATTOM's gross figures exclude rehab and carrying costs, which flipping veterans put at 20% to 33% of after-repair value.
That gap between gross and net is exactly what a lender reads.
The two tests
The loan is the lower of the two results. Both depend on the scope of work: the appraiser reads it to set the ARV, and the inspector uses it to release draws. See LTC vs ARV on a fix and flip loan for a worked example.
| Test | Limit | What it protects against |
|---|---|---|
| Loan to cost | Up to 90% of purchase plus renovation | Too little of your own cash in the deal |
| Loan to after-repair value | Up to 70% to 75% of ARV | A project that costs more than it will be worth |
New Jersey exit costs
For contracts signed on or after July 10, 2025, the graduated transfer fee on sales above $1M is paid by the seller, which on a flip means you. It is 1% on transfers up to $2M and rises in steps to 3.5% above $3.5M. On a resale at $1.8M, that is $18,000 out of the profit. Build it into the exit, along with the broker's commission and the carry until closing.
A sizing example
A hypothetical deal: a $1.2M purchase with a $400,000 renovation, so $1.6M of total cost. The cost test allows up to $1.44M (90%). If the appraiser puts the after-repair value at $1.9M, the value test allows $1.33M at 70% or $1.425M at 75%. The value test is lower, so it sets the loan, and you bring the difference in cash. At that resale price the seller-paid transfer fee is 1%, or $19,000.
For the cost test to set the loan at the full 90%, the after-repair value has to be at least 1.2 times total cost at 75% of ARV, and about 1.29 times at 70%.
What else the lender checks
| Item | Why it matters in New Jersey |
|---|---|
| Timeline | Foreclosure is judicial: filed in the Superior Court and ending in a sheriff's sale after judgment, which takes longer than a trustee sale. A realistic schedule matters more |
| Scope and permits | The scope sets the ARV and the draws; work that needs permits has to be permitted |
| Sold comps | Recent sales of renovated properties nearby, not list prices |
| Experience | Completed flips earn more leverage; a first flip is possible with a strong contractor |
| Exit if it does not sell | A DSCR refinance up to 80% LTV, which in Jersey City depends on the rent a building can legally charge under the municipal rent control ordinance |
Terms and timing
State specifics are on investment property loans in New Jersey and Jersey City; the product is on fix and flip loans. A non-US investor borrows on the same terms through a US LLC, with no Social Security number required.
- 12 months, interest-only, renovation funds drawn as work is inspected
- No prepayment penalty: sell early, pay no extra
- Fee of 1% to 2% at closing, no upfront fees
- Term sheet in 24 to 48 hours, about two weeks to close on a clean file