Hard money loans are short-term, asset-backed loans in which the property acts as collateral for the funds that are borrowed. These collateralized loans are originated by hard money lenders, which commonly fund fix and flip investors, landlords, and even commercial project developers.

Hard money loans are most commonly used to finance fix-and-flip real estate projects. However, hard money loans can also be used to complete fix-to-rent projects, invest in rental property and build residential homes from the ground up. Hard money loans can also be used to refinance an existing property or to purchase a property as a business rather than as an individual.

The minimum FICO score is 650.

Despite what some might say, institutional hard money lenders, such as New Silver, require borrower’s credit review when underwriting files. Importantly, when applying for a loan, the borrower’s credit score isn’t impacted, as only a soft pull credit is performed during underwriting. In certain scenarios, borrowers with an excellent credit history and credit score may qualify for a lower rate than borrower’s with a poor credit score. The hard money lender determines the final rate that is offered, based on the underlying collateral, borrower’s experience, census data and borrowers’ credit.

The minimum loan amount of $100,000, property as-is value of $100,000 or higher

Yes, an appraisal with interior access is required.  For projects with 5+ units, a full commercial appraisal will be required.