NavCap Saves You Money With "Non Dutch" Interest

And, after all, isn’t that the goal of real estate investing—to maximize profits by holding down expenses, including financing costs? By offering Non Dutch interest, NavCap allows our borrowers to reduce their monthly interest payments, boosting their bottom line. 

What exactly does Non-Dutch mean and why is it important? 

Non-Dutch refers to the way interest is calculated on a loan. There are generally two parts to most real estate investor loans—the purchase price of the property and the repair budget. In Non-Dutch loans, the repair money is assessed interest only as it is disbursed to the borrower rather than right up front. This lowers your interest payment and saves you money in the long run. 

For repair budgets above $75K, NavCap uses the Non-Dutch method to put together our loan packages. Since this is not necessarily the case with other real estate lenders, it pays to shop around. 

But let’s run through some numbers to see just how big a difference Non Dutch interest can make. 

Let’s compare a fix and flip loan scenario using Dutch interest and Non Dutch interest. In this example, we use a $500,000 purchase price with $100,000 rehab budget on an “80/100 Fix and Flip Loan” (80% LTV on the purchase and 100% rehab reimbursement). See the chart.

As you can see, the difference in the monthly payment can be significant—in this case, $562.50 per month. Over the course of the loan, that savings can really add up, leading to a greater probability of financial success.

And since the financial success of our clients is what NavCap is all about, we are happy to offer Non Dutch financing as an option. Reach out today to let us customize a loan package that makes sense for you. Call us at 888.444.3160 or email us at Or click below to get a no-obligation quote for your project.

And, if you are looking for your next project, check out our list of off-market properties available for expedited sale.