Hard Money Loans for Real Estate Investors
If you’re looking for a hard money loan, you’ve come to the right place. From short-term hard money bridge loans to long-term 30-year hard money loans, at Hard Money Experts, we connect investors to the best hard money loan options and the best hard money lenders nationwide.
As the nation’s premier hard money and private money broker, our vast network of lenders provide hard money loans for a wide variety of situations, including fix-and-flip loans, owner-occupied hard money loans, REO and short sale financing, and hard money loans for commercial real estate, just to name a few.
We also specialize in arranging hard money construction loans, soft money loans, long-term hard money rehab loans, and ARV loans.
Hard Money Terms Include:
LTV: 50-100%
Terms: Up to 30-years
Amortizations: Up to 30-years
Interest Rates: Between 6-20%
Interest-Only Loans: Available for qualified borrowers.
Origination Fees: Between 2-6%
Credit Checks: Not required in many situations.
Get Connected to the Best Hard Money Lenders in Every State
Choosing the right lender is essential if you want to finance your next real estate deal with hard money. While some lenders only lend up to 75% LTV, others lend up to 100%, particularly for fix-and-flip deals for cross-collateralized situations.
Interest rates and origination fees also vary significantly from lender to lender. In the end, getting the right lender could save you tens (or hundreds) of thousands of dollars. This is why you need to understand your options before jumping into a hard money loan, particularly if it’s your first (or second) time using hard money.
Fortunately, at Hard Money Experts, we provide the best, most up-to-date lists of all the best hard money lenders in each city and each state. From the best hard money lenders in Florida, to the best hard money lenders in Maine, we have you covered.
Owner-Occupied Hard Money Loans
Whether you need an emergency, interest-only refinance to avoid home foreclosure, you want to begin house-hacking, or you want to purchase a duplex, triplex, or quadplex and live in one of the units, getting an owner-occupied hard money loan can be an excellent option in many situations.
Commercial Hard Money Loans
While many think of single-family homes when they think of hard money, hard money loans are, in reality, available for all types of commercial properties, including 5+ unit multifamily properties, retail, industrial, office, senior living, student housing, self-storage, and much, much, more.
REO Hard Money Loans
If you’re attempting to purchase an REO property at auction or via a short sale, you might need money fast— and a hard money loan could be the best way to get it. Not all hard money lenders fund REO and short sale situations, but those that do specialize can help you capitalize on great deals, fast.
Hard Money Loans for Bad Credit
One of the major benefits of hard money loans is that high credit scores are, in most cases, not essential to loan qualification. Many hard money lenders do not require credit checks, instead basing their loan only on the property's appraised value. However, some loans, such as hard money construction and long-term hard money loans may require good credit scores.
ARV Loans (Hard Money)
ARV loans, also known as after-repair value loans, are used to finance the purchase and renovation of fix and flip properties. The loan amount is based on the after-repair value (ARV), the property's estimated value after the repairs have been made. Hard money lenders often finance up to 70-80% ARV (often up to 100% LTV) for qualified deals.
Hard Money Bridge Loans
Sometimes, an investor simply needs short-term financing before refinancing into a longer term bank loan or soft money loan. In other sitautions, they may need short-term financing to complete a fix-and-flip. In these cases and more, hard money bridge loans can be an excellent option. Terms can be as little as six months, and sometimes, prepayment penalites can be waived.
Hard Money Rehab Loans
Hard money rehab loans can be ideal for fix and flip deals. Just like ARV loans, these loans often have interest-only terms between 6-12 months. Hard money rehab loans often function the same as ARV loans, but may be based on LTV rather than ARV, leading to lower leverage, but also lower interest rates.
100% Hard Money Loans
Unlike almost all other real estate loans, many hard money lenders offer 100% financing for properties. This may be for fix and flip situations, or when the purchase price of a property is lower than the appraised value. 100% hard money loans often have higher rates and more origination points.
Hard Money Construction Loans
In addition to fix-and-flip deals, hard money loans are also available for ground-up construction projects. These loans typically have between 6-18 month terms and are disbursed via construction draws during the construction process. Due to increased risk, interest rates and origination points may be higher than for fix and flip or acquisition deals.
Private Money Loans
Hard money loans and private money loans share many of the same characteristics and, in some cases, are almost identical. Many lenders refer to themselves as both hard money and private money lenders. However, true private money lenders often don’t advertise their services, but can often provide better terms than traditional hard money lenders.
Hard Money Land Loans
If you’re interested in purchasing vacant or raw land, either for a construction project or to flip for a profit, a hard money land loan could be the perfect solution. Hard money land loan terms often range from 6-36 months and have relatively high interest rates due to the fact that raw land does not produce income until it has been developed.
Soft Money Loans
Soft money loans are similar to hard money loans in many ways, yet they offer significantly lower interest rates (sometimes as low as 5-6%), lower origination fees, and far better terms. Soft money loans are ideal for borrowers who have a good credit history and can manage a decent down payment, yet still, need to close fast.
30-Year Hard Money Loans
While most hard money financing is short-term, often with terms between 6-36 months, long-term loans are available from select lenders, with some lenders even offering 30-year hard money loans. These loans generally have stricter underwriting standards than traditional hard money loans, but, like soft money loans, have significantly lower interest rates.
Fix and Flip Loans
Fix and flip loans are a mainstay of many hard money lenders. In essence, these loans are the same as hard money rehab loans or ARV loans, and are generally offered with terms between 6-12 months, with interest-only options widely available. Depending on the lender, maximum leverage for these loans may be determined by either ARV or LTV.
Airbnb Loans/Short-Term Rental Loans
Short-term rental properties, often using online vacation marketplaces like Airbnb, can be incredibly profitable—sometimes twice or three times as profitable as long-term rentals. Fortunately, hard money lenders are increasingly willing to finance these properties with specialized short-term rental loans, sometimes referred to as Airbnb loans.
DSCR Loans
DSCR loans are another type pf asset-based hard money or private money loan for real estate investors. Instead of looking at the borrower’s qualifications or even the LTV of the loan, the lender will focus on the income produced by the property, as represented by the property’s debt service coverage ratio (DSCR).
Small Hard Money Loans
Sometimes, a borrower only needs a small amount of money to close a real estate deal. Perhaps you’re paying mostly cash, have an equity partner with a large stake in the property, or maybe you already own a property just need a small amount of money to do a minor rehab project. Fortunately, many hard lenders can provide loans as small as just $25,000.