What hard money is
Hard money loans are short-term loans based mainly on the property and the deal, not your personal income. They are built for speed and flexibility, and they are priced higher than long-term loans for that reason. These are for investment properties only.
- Fast closings compared to traditional financing
- Rehab funding that can be drawn as work gets completed
- Based on the deal, including purchase price, rehab budget and after repair value
- Interest only payments are common during the project
Plan your exit first
Every hard money loan needs an exit. Usually that is selling the property after the rehab, or refinancing into a long-term loan once it is rented. If you plan to keep it, a DSCR loan is the most common refinance out of hard money, and I can line that up before you ever close on the purchase.
What lenders want to see
- The purchase contract and your rehab budget
- An estimate of the after repair value
- Your experience, though some lenders work with newer investors
- Cash for the down payment, closing costs and reserves
Why use a broker for this
Hard money lenders vary a lot on leverage, fees, draw processes and how fast they actually close. I shop the deal across lenders so you are not overpaying, and so the loan fits how you run your projects.
Common questions
How fast can a hard money loan close?
Much faster than a traditional mortgage in many cases. Exact timing depends on the lender, title and the appraisal or valuation process.
Can I get a hard money loan for my own home?
No. Hard money loans are for investment and business purposes only.
Do I need flipping experience?
Experience helps with leverage and pricing, but some lenders do work with first-time flippers who have a solid plan and reserves.
All loans subject to credit approval, property eligibility, and underwriting guidelines. Not all borrowers will qualify. Program terms and availability can change without notice. This is not a commitment to lend.