If you're applying for rehab financing, knowing how to write a scope of work for a rehab loan is the difference between a smooth approval and weeks of back-and-forth with underwriting. A scope of work is simply a line-item budget that tells us what you're fixing, what it costs, and in what order. Get it right and your fix and flip loans close faster. Get it wrong and your file sits in a queue while an underwriter asks for clarification.
We review hundreds of these documents a year. Here's exactly what we look for, and a simple template you can copy for your next deal.
Why Your Scope of Work Matters More Than You Think
Your scope of work does two jobs. First, it proves the rehab budget is realistic, which protects you from running out of money mid-project. Second, it's what we use to size your rehab holdback and build your draw schedule.
A vague scope of work gets flagged every time. "Update kitchen and bathrooms, paint, flooring - $25,000" tells an underwriter nothing about whether that number is realistic. A detailed scope tells us you've actually walked the property and priced the work, which is exactly what we want to see.
What Lenders Want to See in a Rehab Budget
Underwriters sizing a rehab loan want specifics, not estimates. At minimum, your scope of work should include:
- Room or system breakdown - kitchen, bathrooms, roof, HVAC, electrical, plumbing, flooring, exterior, landscaping
- Cost per line item - materials and labor combined, or separated if you prefer
- Scope description - "replace roof" vs. "repair roof flashing" are very different costs and risk levels
- Timeline estimate - how many weeks each phase should take
- Permit needs - flag anything requiring a permit, since that affects your draw timeline
We size leverage based on this document. On strong files, our fix and flip loans can reach about 90% of purchase price and up to 100% of rehab costs, which means your scope of work directly impacts how much cash you bring to closing. A sloppy budget that gets trimmed by underwriting means more cash out of your pocket.
The Simple Scope of Work Template
You don't need fancy software. A spreadsheet with these columns works for almost every deal we see:
- Category (kitchen, bath, roof, etc.)
- Specific work description
- Materials cost
- Labor cost
- Total line cost
- Estimated completion week
Kitchen remodel (cabinets, counters, appliances): $15,000
Bathroom x2 (vanities, tile, fixtures): $10,000
Roof replacement: $8,000
Interior paint, whole house: $4,000
Flooring, LVP throughout: $6,000
Exterior paint and landscaping: $3,000
Contingency (10%): $4,600
Total rehab budget: $50,600
Notice the contingency line. Every scope of work should include 10% to 15% set aside for surprises. Underwriters expect it, and skipping it is a common mistake that forces investors to request budget increases mid-project, which slows down draws.
How Your Scope of Work Connects to Your Draw Schedule
Once your scope is approved, it becomes the backbone of your draw schedule. Each line item or phase gets tied to a draw request, and we release funds as work is completed and verified. A clean, organized scope of work means faster draw approvals because there's no guessing about what was supposed to happen at each stage.
This also ties into how your loan amount is calculated in the first place. If you're unsure how purchase price and rehab costs stack into your total loan, read our guide on loan to cost vs. loan to ARV before you finalize numbers.
Common Scope of Work Mistakes That Cost Money
- Underbidding the budget to make the deal look better on paper. Underwriters catch this, and running out of rehab funds mid-project is one of the most expensive mistakes an investor can make.
- Lumping everything into one line. "General renovation - $60,000" will get sent back for detail almost every time.
- Skipping contingency. Older properties almost always reveal surprises once walls are opened.
- Ignoring permit timelines. If your scope includes structural, electrical, or plumbing work, build permit time into your schedule.
- Guessing on costs instead of getting contractor quotes. Even rough quotes from a licensed contractor strengthen your file significantly.
If you're new to rehab projects, our guide on qualifying for a hard money loan with no experience covers how we evaluate first-time investors, and yes, first-time flippers and first-time builders are welcome on our programs.
Scope of Work for Bigger Projects
If your project is a ground-up build rather than a renovation, the format is similar but more detailed, covering site work, foundation, framing, and trades in sequence. See how ground-up construction loans work for how we structure budgets on new builds. For larger multi-unit properties, check our commercial and multifamily loans page, and investors managing several projects at once often benefit from portfolio loans to simplify financing across multiple properties.
Planning to hold the property after rehab instead of selling it? Run your numbers through our DSCR calculator and read BRRRR method financing to see how a completed rehab transitions into a long-term rental loan.
What to Do Next
A clear scope of work gets your loan approved faster and keeps your project funded without delays. Before you submit your file, run your numbers through our fix and flip calculator or deal analyzer to stress-test your budget. Rates move daily, so get a real, personalized number on our rate and loan estimator or head straight to get a quote. Our loan officers review scopes of work every day and can tell you quickly if yours is underwriting-ready. Call us at (850) 279-8588 and we'll walk through your budget together.
Frequently asked questions
Does BridgePoint require a specific format for the scope of work?
No specific software is required, but we do want line-item detail by category with costs and an estimated timeline. A clear spreadsheet works fine.
How much rehab budget can be financed on a fix and flip loan?
On strong files, our loans can cover up to 100% of rehab costs and about 90% of purchase price, subject to underwriting. Your scope of work accuracy directly affects how much leverage you get.
What if my rehab costs change after the loan closes?
Budget changes happen. Talk to your loan officer as soon as you know about an overage so we can review it against your draw schedule rather than letting it surprise your project timeline.
Do I need contractor bids to submit a scope of work?
Contractor quotes aren't always required, but they strengthen your file and speed up approval, especially for first-time flippers or larger rehab budgets.