A hard money loan is a short-term, asset-based loan typically secured by real estate. These loans are primarily used by real estate investors and individuals who need quick financing and may not qualify for traditional bank loans.

Hard money loans are secured by real estate and are based on the value of the property rather than the borrower’s credit score or income. Unlike traditional loans, which are typically underwritten by banks and take longer to process, hard money loans are funded quickly and have more flexible requirements.

Hard money loans are ideal for borrowers who need quick access to funds or who have difficulty qualifying for traditional financing. Common reasons include:

• Speedy approval and funding (often within days)
• Flexible qualification requirements
• No prepayment penalties
• Ideal for real estate investors (fix-and-flip, rental properties, etc.)

We primarily lend on residential and commercial real estate, including:

• Single-family homes
• Multi-family properties
• Commercial buildings
• Condominiums
• Land (depending on the project)

The loan amount depends on the value of the property being used as collateral. Typically, hard money lenders provide loans ranging from 60% to 70% of the property’s after-repair value (ARV). The exact loan-to-value (LTV) ratio will depend on the property type, its condition, and your project needs.

Interest rates for hard money loans are typically higher than traditional bank loans. Rates can range from 10% to 13% depending on factors like the property type, loan amount, and risk level. The higher rates reflect the shorter-term nature of the loan and the flexibility offered.

Hard money loans usually have short repayment terms, ranging from 6 months to 2 years. The loan term will depend on the nature of your project and your repayment plan. Interest-only payments are common, with the principal balance due at the end of the term.

One of the main advantages of a hard money loan is the speed of approval and funding. Once you submit your application and provide the necessary documentation, we can typically fund your loan within 5 to 10 business days, depending on the complexity of the project.

We focus primarily on the value of the property being used as collateral rather than your credit score or income. Key requirements include:

• Equity in the property
• A viable plan for using the loan (e.g., renovation or development project)
• Clear title to the property
• A proven track record (for investment properties) or experience with real estate (not required)

No, credit score is not a primary factor in qualifying for a hard money loan. We focus on the value of the property and the borrower’s ability to repay the loan. However, a history of previous real estate transactions or successful investment projects can be beneficial.

Fees include:

• Origination fee: Typically 1% to 3% of the loan amount
• Appraisal fee: For valuing the property
• Loan processing fee: For administrative costs
• Title search fee: To verify the property’s title

Exact fees will be outlined in your loan agreement.

No, we do not charge prepayment penalties. You can pay off the loan early without incurring additional fees, which allows you to save on interest costs if you complete your project ahead of schedule.

The application process involves the following steps:

1. Submit an application here with basic information about your project and the property.
2. Provide information such as property details, ARV, construction budget, and a brief project plan.
3. Property valuation (appraisal or inspection) to determine the loan amount.
4. Loan approval based on the property’s value and your project plans.
5. Sign the loan agreement, and funds are disbursed.

To apply, simply fill out our online application form or contact one of our loan specialists. We’ll guide you through the application process, answer any questions you have, and help you get started with your project.