> ## Documentation Index
> Fetch the complete documentation index at: https://docs.propilotapp.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Financing (Loans)
> Build default financing scenarios with one or more loans so the Deal Calculator opens with your real funding structure.
Financing (Loans) sets the default financing structure the Deal Calculator starts from. You build
named financing scenarios, each containing one or more loans with their own type, LTV, rate, and
terms, and choose which scenario is the default. Rental and Flip each have their own financing
defaults, so a buy-and-hold DSCR setup and a hard-money flip setup can coexist.
**Key things to know**
* Financing is configured per mode with the **Rental** / **Flip** mode switcher (teal for Rental, green for Flip).
* **Cash** is a System scenario every organization has. Make it the default to open the Deal Calculator with no financing.
* Scenarios are defaults. Inside the calculator, users can pick any scenario or build a custom setup per property.
* **Reset** asks for confirmation and changes only the selected mode. It restores Cash as the default while keeping the platform System scenarios available. Click **Save Financing Defaults** to apply the reset.
* Target price intentionally excludes financing, so loan defaults change cash flow and returns but not the target price itself.
## Where to find it
Open **Settings** from the sidebar, then choose **Financing (Loans)** under **Basic Setup**.
Use the **Rental** / **Flip** mode switcher at the top, then click **Save Financing
Defaults** when done.
## Financing Scenarios
A scenario is a named funding structure, for example "Conventional Purchase" or "BRRRR". Each
scenario holds one or more loans. The scenario marked **DEFAULT** is what the Deal Calculator
loads when opening a property with no saved financing. When the list is long, scroll inside the
scenario panel to view the remaining scenarios without moving the page controls.
For each scenario you can:
* Click **New scenario** to create one, then give it a **Scenario Name**.
* Select the radio button to make it the default.
* **Duplicate scenario** to create an editable copy within the same mode.
* Use the **to Flip** / **to Rental** button to copy it into the other mode.
* **Remove scenario** to delete a custom scenario.
## System scenarios
System scenarios are maintained by ProPilot and marked **System**. They cannot be edited, renamed,
or removed. Click a loan-based System scenario to expand its read-only loan terms, closing costs,
timing, and rehab details. Those are the exact starting costs: if no closing costs are listed,
the scenario starts without loan closing costs. Duplicate it when you want to create a customizable copy.
* Rental includes **Cash**, **BRRRR**, **Classic Loan**, and **Refinance**.
* Flip includes **Cash** and **Hard Money**.
* **Cash** is always listed first and represents paying the full purchase price with no loans.
New organizations start with Cash as the default for both Rental and Flip. Existing organizations
keep the default they already selected.
## Loan settings inside a scenario
Each loan in a scenario has these fields:
| Field | What it does |
| ---------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Method** | **Finance** (a purchase loan) or **Refinance** (replaces another loan later) |
| **Loan time** (second loan onward) | **With purchase** or **After purchase**, with a delay in months or years |
| **Type** | Loan type: DSCR, Hard Money, Conventional, FHA, VA, USDA, Private Money, Seller Financing, HELOC, or Other. Picking a type loads sensible starting terms for it |
| **LTV** | Loan-to-value percent. Multiple purchase loans share the 100% cap, and the field shows your remaining max |
| **Rate** | Annual interest rate percent |
| **Amortization** | Loan term, entered in months or years |
| **Interest-only** | Switch the loan to interest-only payments |
| **Include rehab in loan** | For purchase loans only, finance rehab costs inside the loan. Turning it on reveals a **Rehab LTV** percent beside it |
| **Closing costs** | Per-loan fees such as Origination Fee, Points, Underwriting Fee, Appraisal Fee, Title Insurance, and more, each as a percent or dollar amount. Use **Add closing cost** for the first one, then **Add another fee** |
| **Covers another loan** | For a refinance added after purchase, choose which earlier loan it pays off |
As a reference, choosing a **Type** loads starting terms like these (all editable):
| Type | Starting LTV | Rate | Term |
| ---------------- | ------------ | ----- | -------------------- |
| Conventional | 80% | 7.5% | 30 yr |
| FHA | 96.5% | 6.75% | 30 yr |
| VA / USDA | 100% | 6.5% | 30 yr |
| DSCR | 75% | 8.5% | 30 yr |
| Hard Money | 80% | 12% | 1 yr, interest-only |
| Private Money | 80% | 10% | 5 yr |
| Seller Financing | 90% | 6% | 20 yr |
| HELOC | 100% | 9% | 10 yr, interest-only |
## What this affects
* **Deal Calculator** - opening a property with no saved financing loads the default scenario for the current mode. Users can switch scenarios or build a custom loan stack per property. See [Deal Calculator](/features/roi-calculator).
* **Cash flow and returns** - loan terms drive debt service, cash needed at close, and cash-on-cash return on every financed analysis shown in [Property Details](/features/property-details).
* **Target price** - unaffected. The target price solver excludes financing by design, so two teams with different loan defaults still agree on the same target price.
## What changes when you update it
* New analyses start from the updated default scenario and loan terms.
* Properties with saved financing keep their per-deal setup; nothing is recalculated retroactively.
* Custom scenarios you rename, duplicate, or delete change only what is offered going forward.
## Limitations
* Financing defaults are organization-wide per mode; there are no per-teammate defaults.
* Purchase loans in a scenario share a combined 100% LTV cap; refinance loans are outside that cap because they replace earlier loans.
* The first loan in a scenario is always with purchase; only later loans can be timed after purchase.
* A scenario labeled **LEGACY** was auto-generated from older settings and cannot be edited; create a new scenario to customize.
* Only admins and owners can save changes.
## Common questions
**Cash** is the default scenario for that mode. Select the radio button on a loan scenario
instead to open financed analyses by default.
No. Cash and the other System scenarios are always available. If you do not want Cash as the
starting point, make another scenario the default.
Duplicate it to create a custom copy, then edit the copy. The original System scenario remains
available to everyone in the organization.
Yes. A scenario can hold multiple loans, for example a purchase loan plus a later refinance
that covers it, and users can add or edit loans per property in the calculator.
No. The target price solver intentionally excludes financing, so loan defaults change cash
flow and return metrics but never the target price.
Create a scenario with a purchase loan (for example Hard Money with **Include rehab in
loan**), then add a second loan set to **Refinance**, timed **After purchase**, with **Covers
another loan** pointing at the first loan.
No. Saved analyses keep their per-deal financing. Only new analyses load the updated default
scenario.
Purchase loans in the same scenario share a 100% combined LTV cap. The field shows the
maximum left after the other purchase loans; lower another loan's LTV to free up room.