Understanding Hard Money Loans
Hard money loans are short-term loans based primarily on the value of the property rather than the borrower's income. They're built for speed and flexibility when a conventional lender can't close in time or won't lend on the property's current condition.
Investors use them to buy and renovate distressed homes, bridge the gap between purchases, or win a competitive deal with a fast close.
Who it's a good fit for
- Fix-and-flip investors
- Buyers who need to close quickly
- Properties that don't qualify for conventional financing because of their condition
- Borrowers who need a short-term bridge before refinancing or selling
Key details
- Loan amounts are based on the property's value, and sometimes on its after-repair value.
- Terms are short, often a year or two, with a plan to sell or refinance.
- Rates and fees are higher than long-term financing in exchange for speed and flexibility.
- Business-purpose only; not for a home you'll live in.
Hard Money questions
How fast can a hard money loan close?
Often much faster than a conventional loan, depending on the property, title and valuation.
What is an exit strategy?
Lenders want to know how you'll repay the loan, usually by selling the property after renovation or refinancing into long-term financing such as a DSCR loan.
Can renovation costs be financed?
Many hard money loans include a rehab budget released in draws as work is completed and inspected.
Where we lend
Available throughout our service area. See all areas we serve →
Related programs
Land Loans
Financing for raw land, rural acreage and lots to build on.
Learn moreDSCR Loans for Investors
Investment property loans that qualify on the property's rental income, not your personal income.
Learn moreCommercial Real Estate Loans
Financing for multifamily, mixed-use, retail, office, industrial and owner-occupied commercial property.
Learn moreInformation on this page is general and educational. Loan approval, terms and eligibility depend on your full application, credit, property and current program guidelines.