Hard Money
Loans
Lightning-fast financing for time-sensitive real estate deals. Perfect for fix-and-flip projects and bridge financing needs.
What are Hard Money Loans?
Hard money loans are short-term, asset-based loans secured by real estate. These loans are funded by private lenders or companies and are designed for quick closings when traditional financing isn’t fast enough or available.
The term “hard” refers to the asset-backed nature of the loan – the property serves as collateral. Approval is based primarily on the property’s value and the borrower’s experience, not credit scores or income verification.
Key Features
Ultra-Fast Closing
Close in 7-14 days. Perfect for competitive markets and time-sensitive opportunities.
Asset-Based Approval
Approval based on property value and after-repair value (ARV), not personal income.
Fix & Flip Friendly
Designed for renovation projects with draws available for construction costs.
Flexible Underwriting
Less stringent credit and income requirements compared to traditional loans.
Higher LTV Available
Up to 70-80% LTV, with some lenders offering renovation funds.
Interest-Only Payments
Typically interest-only payments to maximize cash flow during the loan term.
Best Use Cases
Fix & Flip Projects
- Purchase distressed properties
- Fund renovation costs
- Quick resale timeline
- Maximize profit potential
Bridge Financing
- Buy before selling current property
- Competitive cash offers
- Portfolio transitions
- Time-sensitive acquisitions
Auction Properties
- Foreclosure auctions
- Courthouse steps
- Quick closing requirements
- Cash equivalent offers
Typical Loan Terms
Rates & Fees
- Interest rates: 8-15% typically
- Points: 2-4 points upfront
- Loan term: 6-24 months
- Prepayment: Often allowed
Requirements
- LTV: Up to 65-75% of ARV
- Credit: 600+ preferred
- Experience: Some lenders require it
- Exit strategy: Must be clear