GAP funding is the slice between what the first piece of capital will do and what the project actually costs. You are not replacing the first lien. You are stacking — first money, then the gap — so the LLC can close or finish the work instead of dying $40,000 short.
We broker that second piece. Funded Funding is a private-money brokerage — not a bank, not NMLS-licensed, not a consumer mortgage shop. Borrowers close in an LLC (or another business entity). If you still need the entity conversation, read why investors fund through an LLC. This post is the GAP product.
What GAP funding is
GAP fills the space between loan-to-value (or what the senior lender will advance) and total project cost. Purchase, rehab, closing costs, the draw you have to float, the land the construction loan will not fully cover — the leftover that is still a real number.
The live product points on the site — the ones we will not invent past — are:
- Fill the space between LTV and total project costs
- Built for investors stacking funding sources
- A simple approval process on a complete file
That is the published box. We will not quote a GAP rate, a max second-lien percentage, or a “we cover any shortfall” line. Your quote depends on the first source, the property, the entity, and the lender who is willing to sit behind (or beside) that first piece.
What “stacking capital” actually means
Stacking means more than one source on the same deal, on purpose, with both stories matching. Typical stacks on this desk:
- Senior + GAP. A Fix & Flip, construction, or bridge first lien does most of the work. GAP covers the remainder so you are not wiring the difference from a personal account you do not have.
- Partner equity + private money + GAP. Same idea. Everyone’s dollars have a job. Hide a partner and the file gets slower, not faster.
- Construction land/build split that still comes up short. The published construction box is up to 90% of land plus 100% of the build. That is not a promise every file hits the ceiling. When it does not, GAP is the conversation — not a quiet second you hope nobody notices. See construction loans for LLC investors.
Stacking is not “apply twice and see who wires first.” It is one deal story, two (or more) pieces of capital, and a close that can actually fund.
Why the gap sits in your LLC
GAP is still a business-purpose loan to an entity. The LLC is on the first piece and the gap. You do not take the senior loan in the entity and the shortfall in your personal name as a consumer.
We are not lawyers. We will not structure your operating agreement or tell you how to document a partner. We will tell you the file has to close in a business entity, and that both sources need to know the other exists.
GAP vs bridge vs the first-lien products
- GAP — the leftover after the first source. Stacking. Not a standalone “fund the whole house” product.
- Bridge — short-term, interest-only, to a named takeout. That is time, not a second-lien shortfall. Read bridge loans for LLC investors.
- Fix & Flip — purchase plus rehab, 6–24 months, draws. Often the first piece GAP sits behind. See the flip post.
- DSCR — longer hold on a rented asset. GAP is rarely the DSCR conversation; if the rental already cash-flows, start at what a DSCR loan is.
If you only need one source and the numbers fit a published product, you may not need GAP. Do not add a second lien for sport.
What we look at on a GAP file
- The first source. Who is in first, for how much, on what terms you actually have — not terms you wish you had.
- The shortfall. A real number: project cost minus what the first piece covers. “About fifty” is not a number.
- The deal. Same bones as the rest of the desk: address, purchase or build, rehab or construction budget, ARV or rent, exit.
- The entity. LLC (or other business entity) that can take both pieces.
- How it gets paid off. Sale, refinance, DSCR takeout, or cash from the project. GAP still needs an exit.
A complete file can move. A file that hides the first lender, or pretends the gap is “just closing costs” when it is half the rehab, will not.
Mistakes that stall a GAP file
- No first source. GAP is the remainder. If nothing is in first, you need a first-lien product, not this page.
- Two stories. The flip application says one rehab number. The GAP story says another. Pick one spreadsheet.
- Personal-name gap. Do not plug a consumer card or a personal HELOC into an entity deal and call it stacking. If it is on this desk, it is business-purpose and in the LLC.
- Hoping the first lender never finds out. They will. Tell us the stack on day one.
How to put a stack in front of us
- Entity that can close. LLC or other business entity. Title and loans in the entity’s name.
- Both numbers. What the first piece covers, and the exact gap. Plus the same deal fields as the live application.
- Apply on the same form we use live at Funded Funding, or start here: the application. Questions before you fill it out: (520) 552-7065.
Process from there is the same: apply → pre-approve → finalize terms → close in the entity. If the first piece is also coming through this desk, say that so we do not treat you like two strangers.
Frequently asked questions
Is GAP a second mortgage?
Sometimes the structure is a second lien. Sometimes it is a different stack. We will not lock a structure in a blog post. Put the first source and the shortfall on the application and we will tell you what we can actually place.
Can GAP cover my down payment on a rental?
Maybe, if the rest of the file is a real investor deal in an LLC — not a consumer purchase of a house you plan to live in. Down-payment “help” on an owner-occupied home is not this product.
Do I need GAP on every flip?
No. If purchase plus rehab fits the Fix & Flip box and you can close, you may not need a second piece. GAP is for the leftover, not a default add-on.
Is this available everywhere?
No. Not available in every state. Terms vary by lender, property, and borrower entity. Ask before you build a stack we cannot place.
Ready to get funded?
If you have an LLC, a first source, and a real shortfall, send the file. GAP, bridge, Fix & Flip, DSCR, and construction all come through the same intake. We will tell you which pieces the deal actually needs.
We will not invent a funded-loan count to get the click. We will read the stack you sent.
Ready to get funded?
If you have an LLC and a deal, apply here. Same intake form as the live site.