Hard money lenders provide fast financing for real estate investors who need to close deals quickly, typically within 7-14 days. These lenders focus on property value rather than personal credit scores, making them the go-to solution for fix-and-flip investors competing in hot markets where speed determines success.
Quick Facts About Hard Money Lending
| Feature | Details |
|---|---|
| Average Interest Rates | 8.5% to 13% annually |
| Loan Terms | 6 to 24 months (short-term) |
| Origination Fees | 1.5% to 6% of loan amount |
| Typical LTV | 70% to 90% loan-to-value |
| LTC Coverage | Up to 95% loan-to-cost (purchase + rehab) |
| Closing Speed | 7 to 14 days average |
| Minimum Credit Score | 600 to 660 (varies by lender) |
| Property Types | Single-family, multi-family, commercial |
What Is Hard Money Lending and How Does It Work?
Hard money loans are short-term, asset-based financing secured by real estate properties. These private lenders evaluate deals based on the property’s after-repair value (ARV) and project potential rather than your income documentation or employment history.
You’ll typically pay higher interest rates (8-13%) compared to traditional bank loans, but you gain speed and flexibility. Most hard money lenders can close transactions in 7-14 days, allowing you to compete with cash buyers and secure properties that won’t wait for conventional financing.
The loan structure usually covers 70-90% of the purchase price and up to 100% of renovation costs. You make interest-only monthly payments during the loan term, then pay off the full balance when you sell the property or refinance into permanent financing.
Top 10 National Hard Money Lenders Ranked
1. Kiavi (Formerly LendingHome)
Best For: Overall flexibility and tech-driven experience
Kiavi leads the industry with over $21 billion in funded loans and a digital platform that streamlines the entire process. You can close fix-and-flip deals in as little as 7 days with no income verification required.
Key Features:
- Interest rates starting at 7.75%
- Loan amounts from $100,000 to $3 million
- Up to 95% of purchase price, 100% of renovation costs
- Maximum 80% of ARV (after-repair value)
- Loan terms of 12, 18, or 24 months
- Available in 48 states plus Washington D.C.
- Minimum credit score: 660
- Origination fees: 3% to 6%
Kiavi’s AI-driven platform provides instant proof of funds and automated valuations, eliminating appraisal requirements for bridge loans. Their advantage program rewards repeat borrowers with better rates and terms.
2. New Silver
Best For: Fast closings and first-time flippers
New Silver specializes in speed with same-day pre-approvals and closings in as few as 5 days. Their transparent pricing and straightforward process make them excellent for investors new to hard money lending.
Key Features:
- Interest rates starting at 9.25%
- Loan amounts from $75,000 to $3 million
- Up to 90% LTC (loan-to-cost)
- 6 to 24-month terms
- Minimum credit score: 650
- No prepayment penalties
- Advantage program for repeat borrowers
New Silver’s platform uses real-time data to provide instant decisions. You’ll complete applications in under 5 minutes and receive preliminary approval immediately.
3. Easy Street Capital
Best For: Maximum speed and high leverage
Easy Street Capital closes deals in as little as 48 hours with no appraisal required. Their EasyFix program offers up to 93% LTC for experienced investors, including 100% of rehab budgets.
Key Features:
- Interest rates starting at 8.90%
- Loan amounts from $75,000 to $2 million
- Up to 93% LTC (for experienced investors)
- Up to 75% LTV maximum
- 6 to 12-month terms with extensions
- Minimum credit score: 600
- Zero to two points origination
- $1,995 document fee
- Approval in under 24 hours
Easy Street specializes in situations where speed matters most. Their in-house underwriting and funding capability means no waiting for third-party approval.
4. RCN Capital
Best For: Large-scale projects and experienced investors
RCN Capital handles projects ranging from single-family flips to large multifamily developments. They offer higher loan limits and flexible terms for investors with proven track records.
Key Features:
- Interest rates starting at 9.5%
- Loan amounts from $100,000 to $10 million
- Up to 90% LTC available
- 12 to 24-month terms
- Multiple property types accepted
- Competitive pricing for experienced investors
RCN’s lending limits accommodate ambitious projects that smaller lenders can’t handle. They’re particularly strong for investors managing multiple simultaneous projects.
5. CoreVest
Best For: High-volume investors and lines of credit
CoreVest offers a unique Fix-and-Flip credit line starting at $1 million, allowing you to draw funds, repay, and draw again without reapplying. This structure works perfectly for investors handling multiple consecutive projects.
Key Features:
- Fix-and-Flip credit lines from $1 million to $10 million
- Traditional bridge loans also available
- Competitive rates for qualified borrowers
- Requires previous flip experience
- Best suited for prolific investors
The credit line eliminates repetitive applications and closings, saving time and money when you’re flipping properties continuously.
6. Flip Funding
Best For: Versatile project types
Flip Funding provides financing for fix-and-flips, new construction, rehab-only, multi-family, mixed-use, and commercial properties. Their variety of loan products means one lender can handle your entire investment strategy.
Key Features:
- Multiple loan programs for different project types
- Fix-and-flip term loans
- New construction financing
- Rehab-only loans for owned properties
- Multi-family and commercial options
- Flexible underwriting
Flip Funding’s versatility eliminates the need to work with multiple lenders as your investment strategy expands.
7. Residential Capital Partners
Best For: Low down payments
Residential Capital Partners minimizes upfront capital requirements, making them accessible for investors with limited liquidity. They focus on deal quality rather than demanding large cash reserves.
Key Features:
- Lower down payment requirements
- Competitive rates based on experience
- Flexible LTV and ARV calculations
- Designed for active investors
Keep in mind that less experienced investors might receive lower ARV percentages compared to veterans, but the reduced down payment requirement provides entry opportunities.
8. AMZA Capital
Best For: Experienced investors with strong track records
AMZA Capital caters to investors who’ve completed at least 5 flips. They offer attractive terms and rates for qualified borrowers but maintain strict experience requirements.
Key Features:
- Minimum purchase price: $75,000
- Minimum credit score: 650 (higher for better terms)
- Requires 5+ completed flips
- Fix-and-flip credit lines: $3 million to $50 million
- Buy-to-rent loans: minimum $100,000
- Experienced team with deep market knowledge
First-time investors must work with mentors or licensed contractors, but seasoned pros receive excellent pricing and service.
9. Constitution Lending
Best For: First-time and emerging investors
Constitution Lending specializes in helping new investors navigate their first hard money loans. They provide education and support throughout the process while maintaining fair terms.
Key Features:
- Beginner-friendly underwriting
- Educational resources and guidance
- Reasonable credit requirements
- Requires solid business plan
- Property knowledge assessment
While they welcome new investors, you’ll need to demonstrate preparation and understanding of your project. Expect more documentation and explanation than experienced investors provide.
10. Express Capital Financing
Best For: Large commercial projects
Express Capital Financing handles loans from $100,000 to $50 million, accommodating everything from single-family flips to major commercial developments. Their size and capacity support ambitious investors.
Key Features:
- Loan amounts up to $50 million
- Commercial real estate expertise
- Multiple loan products
- National lending footprint
- Experienced underwriting team
Express Capital works best for investors ready to scale beyond residential properties into commercial real estate investing.
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Detailed Comparison: Top Lenders Side-by-Side
| Lender | Min Rate | Max LTC | Closing Speed | Min Credit | Best For |
|---|---|---|---|---|---|
| Kiavi | 7.75% | 95% | 7 days | 660 | Tech-savvy investors |
| New Silver | 9.25% | 90% | 5 days | 650 | Fast closings |
| Easy Street | 8.90% | 93% | 2 days | 600 | Maximum speed |
| RCN Capital | 9.5% | 90% | 10 days | 660 | Large projects |
| CoreVest | 10% | 85% | 14 days | 680 | Credit lines |
| Flip Funding | 9% | 90% | 10 days | 640 | Versatile needs |
| Residential CP | 9.5% | 85% | 14 days | 660 | Low down payment |
| AMZA Capital | 9% | 90% | 10 days | 650 | Experienced only |
| Constitution | 10% | 85% | 14 days | 620 | First-timers |
| Express Capital | 9.5% | 80% | 21 days | 680 | Large commercial |
How to Choose the Right Hard Money Lender
Evaluate Your Experience Level
First-time flippers should prioritize lenders like Constitution Lending or New Silver that welcome beginners. Experienced investors can access better rates from AMZA Capital or Kiavi’s advantage program.
Consider Your Timeline
If you need to close in 48-72 hours, Easy Street Capital or New Silver should top your list. Projects with more flexible timelines can use lenders with slightly longer processing times for potentially better rates.
Calculate Total Costs
Compare the complete picture: interest rate, origination fees, points, and monthly carrying costs. A lower interest rate with high origination fees might cost more than a slightly higher rate with minimal fees.
Assess Your Credit Situation
If your credit score sits below 640, Easy Street Capital (600 minimum) provides access that higher-requirement lenders deny. Better credit unlocks lower rates across all lenders.
Match Loan Amount to Project
Small flips under $150,000 work with any lender. Projects exceeding $2 million require lenders like RCN Capital or Express Capital Financing with higher lending limits.
Geographic Coverage
Verify the lender operates in your target market. Kiavi covers 48 states while some regional lenders focus on specific areas. Out-of-state projects might limit your options.
Understanding Hard Money Loan Costs
Interest Rates Explained
Hard money rates run 8-13%, significantly higher than traditional mortgages at 6-7%. You’re paying for speed, flexibility, and asset-based underwriting rather than income verification.
Your rate depends on credit score, experience level, LTV ratio, property type, and market location. Expect to pay 9-10% as a new investor with good credit and 11-13% with credit challenges.
Origination Fees and Points
Lenders charge 1.5-6% of the loan amount at closing as origination fees. One point equals 1% of the loan amount. On a $300,000 loan with 3 points, you’ll pay $9,000 at closing.
Some lenders offer rate buydowns where you can pay extra points upfront to reduce your interest rate. This makes sense for longer holds but wastes money on quick flips.
Monthly Payment Structure
Most hard money loans feature interest-only monthly payments. You pay only the interest charge each month, with the full principal due at the end when you sell or refinance.
On a $300,000 loan at 10% interest, your monthly payment is $2,500 ($300,000 x 10% / 12 months). The principal balance stays at $300,000 until you pay it off.
Hidden Costs to Watch
Document fees ($1,000-2,000), appraisal costs ($500-1,000), title insurance, recording fees, and servicing fees add thousands to your closing costs. Budget 3-5% of the loan amount for these expenses beyond the origination fee.
Qualification Requirements Across Lenders
Credit Score Standards
Most lenders want 620-660 minimum, though requirements vary by loan size and deal strength. Easy Street accepts 600 while CoreVest prefers 680. Higher scores unlock better rates and terms.
Your credit determines approval and pricing more than loan eligibility. Bad credit won’t necessarily disqualify you, but it will cost you in higher rates.
Down Payment and Equity
Expect to bring 10-30% of the purchase price as your down payment. Lenders finance 70-90% LTV, meaning you cover the remainder plus closing costs.
If renovation costs run $50,000 and you secure 100% rehab financing, you still need the down payment for the purchase. Total upfront cash often exceeds 20% of the purchase price.
Experience Requirements
New Silver, Easy Street, and Constitution Lending welcome first-time investors. Kiavi and Flip Funding work with beginners but prefer some experience. AMZA Capital requires 5+ completed projects.
Partner with experienced investors or use licensed contractors to satisfy experience requirements if you’re new to flipping.
Property Requirements
Single-family homes (1-4 units) qualify easily. Commercial properties, multi-family buildings (5+ units), and raw land face stricter requirements and higher rates.
Properties must show clear value potential. Severely distressed properties requiring structural repairs might get rejected or require extra equity.
The Application and Approval Process
Initial Application
Most lenders offer online applications taking 5-15 minutes to complete. You’ll provide basic information about yourself, the property, and your renovation plans.
New Silver and Kiavi approve applications within hours. Traditional lenders might take 24-48 hours for initial review.
Documentation Needed
Property purchase contract, renovation budget, contractor estimates, comparable sales data (comps), and proof of funds for your down payment represent standard requirements.
Many hard money lenders skip income verification, W-2s, and tax returns. They care about the property’s value and your ability to fund the down payment.
Property Valuation
Lenders determine ARV using automated valuation models, broker price opinions, or full appraisals. Kiavi uses in-house valuations while others require third-party appraisals costing $500-1,000.
Your renovation budget must be realistic and supported by contractor bids. Inflated ARVs or underestimated rehab costs get rejected quickly.
Closing Timeline
Fast lenders close in 5-7 days while others need 10-21 days. Title work, property inspections, and document preparation consume most of this time.
Submit complete, accurate information upfront to avoid delays. Missing documents or unclear renovation scopes extend the timeline significantly.
Strategies for Getting the Best Terms
Build Lender Relationships
Complete your first project successfully, then negotiate better terms on subsequent deals. Kiavi’s advantage program and New Silver’s repeat borrower benefits reward loyalty.
Establish relationships with 2-3 lenders so you always have backup options when you need to move quickly or one lender declines a deal.
Improve Your Credit Score
Raising your score by 50 points can reduce your rate by 0.5-1%, saving thousands on a typical loan. Pay down credit cards, fix errors, and avoid new inquiries before applying.
Increase Your Down Payment
Bringing 25-30% down instead of the minimum 10-15% improves your LTV ratio, unlocking better rates and easier approval. Lower LTV means less lender risk.
Prepare Professional Packages
Present detailed renovation budgets, contractor bids, comparable sales data, and clear project timelines. Professional preparation demonstrates experience and increases lender confidence.
Shop Multiple Lenders
Rate and term variations between lenders can save or cost thousands. Get quotes from 3-5 lenders and compare total costs rather than just interest rates.
Common Mistakes to Avoid
Focusing Only on Interest Rates
A 9% rate with 2 points costs less than an 8% rate with 5 points on a 6-month flip. Calculate total project costs including all fees, not just the rate.
Underestimating Rehab Costs
Renovation overruns leave you underfunded and scrambling for additional capital. Add 20% contingency to contractor estimates and get multiple bids before committing.
Ignoring Monthly Carrying Costs
Interest, property taxes, insurance, and utilities add up quickly. A project taking 4 months longer than planned can eliminate your profit margin.
Choosing Speed Over Fit
The fastest closing isn’t always the best deal. Save 1% on origination fees and you might save $3,000+ on a $300,000 loan, even if closing takes an extra week.
Overleveraging Projects
Maximizing LTC at 90-95% leaves no cushion for mistakes, delays, or market changes. Conservative financing protects you when things don’t go perfectly.
Alternative Financing Options
Traditional Bank Loans
Conventional mortgages offer 6-7% rates and lower fees but require excellent credit, income documentation, and 30-45 day closings. They work for stable properties but not quick flips.
FHA 203(k) Loans
Government-backed renovation loans provide lower rates and longer terms but involve extensive paperwork, property restrictions, and slow processing. Better for owner-occupied rehabs.
Home Equity Lines of Credit (HELOCs)
Use equity from your primary residence to fund flips. Rates run 8-10% with no origination fees, but you risk your home if projects fail.
Private Money Lenders
Individual investors provide flexible terms and potentially better rates than institutional hard money lenders. Finding reliable private money takes networking and time.
Partnership Structures
Team with experienced investors or money partners who provide funding in exchange for profit splits. You contribute sweat equity while they provide capital.
Real-World Example: Comparing Loan Offers
Property Details:
- Purchase price: $250,000
- Renovation budget: $50,000
- ARV: $400,000
- Projected timeline: 6 months
Kiavi Offer:
- Rate: 8.5%
- LTC: 90% ($270,000 loan)
- Origination: 3% ($8,100)
- Monthly payment: $1,913
- 6-month interest: $11,475
- Total cost: $19,575
Easy Street Capital Offer:
- Rate: 9.5%
- LTC: 93% ($279,000 loan)
- Origination: 2% ($5,580)
- Monthly payment: $2,208
- 6-month interest: $13,253
- Total cost: $18,833
Despite the higher interest rate, Easy Street’s lower origination fee and higher LTC result in lower total costs and less money down.
Tax Implications and Business Structure
Interest Deductibility
Hard money loan interest is tax-deductible as a business expense. Track and document all interest payments, fees, and costs for tax reporting.
LLC vs. Personal Ownership
Most investors hold properties in LLCs for liability protection. Many hard money lenders require LLC structures for lending purposes.
1031 Exchanges
Hard money loans work with 1031 exchanges allowing you to defer capital gains taxes when moving from one investment property to another.
Consult Tax Professionals
Real estate tax rules are complex. Work with CPAs experienced in real estate investing to maximize deductions and minimize tax liability.
The Future of Hard Money Lending
Technology Integration
AI-driven underwriting, automated valuations, and digital closings continue reducing processing times. Expect same-day approvals and 3-day closings to become standard.
Competitive Pressure
New lenders entering the market create pricing competition, benefiting borrowers with lower rates and better terms. Shop aggressively to find the best deals.
Expanded Property Types
Lenders increasingly accept short-term rentals, vacation properties, and mixed-use buildings as fix-and-flip candidates, expanding investment opportunities.
Regulatory Changes
Stay informed about lending regulations affecting hard money loans. Rules vary by state and continue evolving as the industry matures.
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Frequently Asked Questions
How quickly can I close on a hard money loan?
The fastest lenders like Easy Street Capital close in 48 hours while most complete deals in 7-14 days. Your preparation determines the actual timeline. Submit complete documentation including purchase contracts, renovation budgets, contractor estimates, and proof of funds immediately. Incomplete applications delay everything. Properties requiring appraisals take longer than those using automated valuations. Title issues can add days or weeks to any closing.
Do I need perfect credit to qualify for hard money loans?
No, most lenders accept credit scores as low as 600-620. Hard money approval focuses on property value and project viability rather than personal creditworthiness. However, better credit scores unlock lower interest rates and better terms. A 660 score might get you 9% while a 720 score qualifies for 8%. Some lenders like Easy Street Capital work with scores down to 600, making them accessible for investors with credit challenges or limited history.
Can first-time flippers get hard money loans?
Yes, several lenders including New Silver, Easy Street Capital, Constitution Lending, and Kiavi work with first-time investors. You’ll likely pay slightly higher rates and need to demonstrate preparation through detailed business plans, realistic budgets, and licensed contractor relationships. Some lenders require you to partner with experienced investors or use licensed contractors throughout the project. Start with beginner-friendly lenders, complete your first successful flip, then access better terms as an experienced investor.
What happens if my renovation takes longer than expected?
Most hard money lenders offer loan extensions for 3-6 additional months. Expect to pay extension fees (1-2% of loan amount) plus continued monthly interest. Contact your lender before your maturity date to arrange extensions. Running past maturity without extension can trigger default fees and penalties. Budget extra time into your initial projections, maintaining a cushion for unexpected delays, permit issues, or contractor problems that extend timelines beyond your estimates.
Should I use a hard money loan or a traditional mortgage for investment properties?
Use hard money for time-sensitive acquisitions, properties needing significant renovation, or situations where you can’t qualify for traditional financing. Traditional mortgages make sense for stabilized rental properties you plan to hold long-term, offering lower rates (6-7% vs 9-13%) and longer terms. The best strategy often combines both: use hard money to acquire and renovate quickly, then refinance into a conventional loan for long-term holding or sell for profit within the hard money term.
