Hard Money Loans
Fast & Flexible Hard Money Financing
Hard money private mortgages are short-term, asset-based loans secured by real estate and funded by private investors or specialty lenders rather than traditional banks. They are commonly used by real estate investors for opportunities that require speed and flexibility, such as fix-and-flip projects, bridge financing, or acquisitions that may not fit conventional guidelines.
These loans focus primarily on the value and exit potential of the property, not just the borrower’s tax returns or credit profile, which can make them accessible even for borrowers with less-than-perfect credit or complex financials. In exchange for fast approvals, higher leverage, and more flexible qualification, hard money loans typically carry higher interest rates, larger down payments, and shorter terms—often from several months up to a few years, sometimes with interest-only payments and a balloon payoff at maturity
Key Features of Hard Money Loans
- Short-term, asset-based financing secured by real property.
- Primarily for investors and business-purpose properties, not owner-occupied homes.
- Funded by private lenders and investors, not traditional banks.
- Underwriting focused on property value and deal strength rather than full tax-return documentation.
- Faster approvals and closings, often within days rather than weeks.
- Higher interest rates and fees than conventional mortgages, reflecting speed and flexibility.
- Typically require meaningful skin in the game through higher down payments or lower LTVs
- Commonly structured with interest-only payments and a balloon payment at the end of the term.
