What Is a Hard Money Loan and How Does It Work?
Hard money loans explained: how asset-based lending works, what it costs in 2026, who uses it, the approval process step by step, and when a bank loan is the better choice.
9 min read
The private lending hub
Hard money loans, explained and connected.
Fix-and-flip, bridge, rental and construction financing from vetted private lenders — with the calculators, guides and lender data to negotiate like a pro. One request, multiple term sheets, in as little as 24 hours. Free for borrowers.
24+vetted lenders listed
24htypical term-sheet turnaround
$75K–$75Mloan sizes covered
50states covered
Quick funding check
No credit pullLoan programs
Financing for every stage of a real estate deal
Indicative 2026 market terms compiled from published lender rate sheets. Final terms are set by each lender.
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Most popularFix and Flip Loans
Short-term, interest-only financing that covers the purchase and 100% of the renovation budget for 1–4 unit properties you plan to resell.
Rates: 8.25% – 11.5%Points: 1 – 2.5Max LTC: 85% – 92.5%Max ARV: 70% – 75%
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Bridge Loans for Real Estate
Fast 6–24 month financing to acquire, reposition or cash out a property while you arrange permanent financing or a sale.
Rates: 8.0% – 11.0%Points: 1 – 2Max LTV: 65% – 80%Loan size: $100K – $20M+
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Long-termDSCR Rental Loans
30-year investor loans qualified on the property’s rent-to-payment ratio instead of your personal income. The standard exit for BRRRR.
Rates: 6.0% – 8.0%Points: 0 – 2Max LTV: 75% – 80%Min DSCR: 0.75 – 1.25
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Ground-Up Construction Loans
Financing for infill builders and spec developers: land plus vertical costs with a draw schedule tied to construction milestones.
Rates: 9.0% – 12.0%Points: 1.5 – 3Max LTC: 80% – 90%Max LTV (ARV): 65% – 75%
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Commercial Hard Money Loans
Asset-based loans on multifamily (5+ units), mixed-use, retail, office, industrial, hospitality and land when speed or story matters more than rate.
Rates: 9.0% – 13.0%Points: 1.5 – 3Max LTV: 55% – 70%Loan size: $500K – $75M
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Hard Money Loans With Bad Credit
What is realistic with a 550–640 score: which lenders look past credit, what they require instead, and how to improve your terms.
Rates: 10.5% – 14.0%Points: 2 – 4Max LTC: 65% – 80%Max ARV: 60% – 70%
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Land and Lot Loans From Private Lenders
Short-term financing for entitled lots, infill land and acreage with a clear development or resale plan.
Rates: 10.0% – 14.0%Points: 2 – 4Max LTV: 40% – 60%Loan size: $100K – $10M
How it works
From deal to funded in five steps
Hard.Money is not a lender. We get your deal in front of the right private lenders and give you the tools to compare them.
Tell us the deal
Property, numbers, timeline and exit — three minutes, no credit pull.
We match lenders
Your request routes to vetted lenders that lend in your state, on your property type, at your size.
Compare term sheets
Lenders respond directly, typically within 24 hours. Use our calculators to compare total cost.
Underwrite & close
Valuation, title, entity docs. Most residential deals close in 5–10 business days.
Build & exit
Draws fund as work completes. Sell or refinance into a 30-year DSCR loan.
Tools
Run the numbers before a lender does
Free calculators built on the same formulas lenders use to size and price loans.
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Hard money cost calculator
Monthly interest, points, fees and effective APR for any term.
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Fix & flip profit
Loan sizing, carry, selling costs, profit, ROI and annualized return.
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ARV & max loan
Maximum loan at any ARV cap and your maximum allowable offer.
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DSCR calculator
Will the rent cover the refinance? See your ratio and verdict.
Are you a lender?
Reach investors actively searching for capital. Verified directory listings, featured placement by state and loan type, and exclusive lead delivery.
List your company →Guides
Learn the game before you borrow
Long-form, practitioner-level explainers — no fluff, worked examples, 2026 numbers.
Hard Money Loan Requirements: What Lenders Actually Check in 2026
The real checklist hard money lenders use: property, equity, credit floors, liquidity and reserves, experience tiers, entity and documents — plus the red flags that get deals declined.
8 min read
Hard Money Loan Rates and Points Explained (2026 Update)
Current hard money loan rates by loan type and borrower tier, how points and fees change the true cost, what drives pricing, and how to negotiate better terms.
8 min read
Hard Money vs. Conventional Loan: Which Fits Your Deal?
A side-by-side comparison of hard money and conventional financing for investors — speed, cost, property condition, leverage, documentation — with a decision framework and worked examples.
7 min read
Fix and Flip Loans: The Complete 2026 Investor Guide
Everything about fix and flip financing: how loans are sized, draw schedules, 2026 pricing tiers, experience requirements, the application process and the mistakes that kill flip profits.
11 min read
How to Finance a BRRRR Deal With Hard Money (and Refinance Out)
BRRRR financing explained as a two-loan structure: a fix and flip loan for buy and rehab, a DSCR refinance for rent and hold.
9 min read
Why Hard.Money
Built for borrowers, paid by lenders
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Transparent data
Rates, leverage, minimums and licensing side by side — the data lenders put in footnotes, we put in tables.
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Independent
We are not a lender and never make credit decisions. Featured placements are labeled. How we make money.
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Fast
One request reaches multiple lenders. Typical first response within 24 hours.
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Educational first
Guides, glossary, state law summaries and video — so you negotiate from knowledge, not hope.
Frequently asked questions
What is a hard money loan?
A hard money loan is a short-term real-estate loan from a private lender or fund that is secured by the property and underwritten mainly on the asset and the deal — purchase price, renovation budget and after-repair value — rather than on the borrower’s income. Terms typically run 6 to 24 months, interest-only, at rates of roughly 8% to 13% plus 1 to 3 origination points.
How fast can I get funded?
Direct lenders commonly issue a term sheet within 24 hours and close in 5 to 10 business days. Repeat borrowers with a clean file and no appraisal requirement can close in 2 to 3 days. The usual pacing items are title work and the valuation.
What credit score do I need?
Most national hard money lenders require 600 to 660. Credit affects your pricing tier and maximum leverage more than approval itself. Regional private lenders may have no minimum if you bring 30%+ equity.
How much down payment is required?
Typically 10% to 20% of total project cost for experienced investors and 20% to 25% for first-timers, plus closing costs and points. Total leverage is also capped at 65–75% of after-repair value.
Can I use a hard money loan for my primary residence?
Generally no. Hard money lenders make business-purpose loans on non-owner-occupied property. Owner-occupied loans fall under consumer-mortgage regulations that most private lenders do not operate under.
Do I need an LLC?
Most lenders require or strongly prefer that you borrow through an LLC or corporation, both for liability reasons and because entity loans are exempt from certain consumer-lending and usury rules. You will still sign a personal guarantee.