Hard Money Loans
Fast, asset-based financing for investors who need to close quickly on a deal — underwritten primarily on the property, not your personal income.
- Underwritten on the property and the deal, not personal income documentation
- Closings can happen in days, not weeks
- Interest-only payments during the loan term
- Terms typically 6–24 months
- Available for purchase, refinance, and cash-out on investment property
Ask About Hard Money
Hard money financing trades a higher rate for speed and flexibility — the loan gets underwritten against the property and the deal, not a stack of income documentation, so it can close fast enough to actually win a competitive or time-sensitive deal. See our hard money loan calculator to estimate numbers on your own deal.
How qualification actually works. Underwriting centers on the deal itself: the property’s current value, its after-repair value (ARV) if renovation is involved, and the exit strategy — sale, refinance into long-term financing, or lease-up. Loan amounts are typically capped at a percentage of value, cost, or ARV, whichever produces the most conservative number, rather than a multiple of the borrower’s income. Personal income documentation is minimal to none; what matters is whether the numbers on the property support the loan and whether the borrower has a credible plan to exit it within the loan term.
What commonly disqualifies a deal. A property that doesn’t appraise at the value the deal assumed, or a rehab budget that doesn’t hold up against contractor estimates, is the most common issue — the loan is only as strong as the numbers behind it. An exit strategy that depends on market conditions that haven’t been realistic — assuming a sale price well above comparable properties, for instance — will also give an underwriter pause, since the lender’s real exposure is what happens if the exit plan doesn’t go as expected.
How it compares to DSCR financing. Both are asset-based, non-QM products used by investors, but they solve different problems. DSCR financing is built for a stabilized, income-producing property and a longer hold — it qualifies off the rent the property already generates or can generate. Hard money is built for speed and transition — a purchase that needs to close in days, a property that isn’t rent-ready yet, or a renovation project — with the expectation that the borrower will either sell or refinance into longer-term financing, often DSCR, once the property is stabilized.
Who This Is For
- Investors who need to close fast on a time-sensitive deal
- Borrowers who can't qualify conventionally but have strong deal fundamentals
- Investors bridging to permanent financing or a sale
Hard Money FAQs
How fast can a hard money loan close?
Often within a week to ten days once the property and file are in order — speed is the main reason investors use hard money.
What determines my loan amount?
Primarily the property's value and, for rehab deals, the after-repair value (ARV), rather than your personal debt-to-income ratio.
Is hard money more expensive than conventional financing?
Yes — rates and points run higher to reflect the speed and flexibility, which is why it's typically used as short-term, deal-specific financing rather than a long-term hold.
Can I use hard money for a primary residence?
No, hard money programs are built for investment and business-purpose property, not owner-occupied primary residences.
What's the difference between LTV, LTC, and ARV?
Loan-to-value (LTV) is the loan amount against the property's current value; loan-to-cost (LTC) is the loan against total purchase-plus-rehab cost; after-repair value (ARV) is the projected value once renovations are complete. Hard money lenders typically cap the loan at whichever of these produces the most conservative number for the deal.
What happens at the end of the loan term if I'm not ready to sell or refinance?
Most lenders offer an extension for an additional fee if more time is needed — the key is raising that conversation before the term ends, not after, since extensions are far easier to arrange proactively.
Do I need good personal credit to qualify?
Credit matters less than it does for conventional financing, but it isn't ignored entirely — most programs still want a baseline credit profile, with the property and the deal's numbers carrying most of the underwriting weight.
Can hard money finance the rehab budget along with the purchase?
Yes, for fix-and-flip deals rehab costs are commonly financed alongside the purchase, with renovation funds typically released in draws as work is completed and inspected.
Ready to Talk Through Hard Money?
Tell us about your situation and we'll tell you honestly what it will take to qualify.
