Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Hard Money Loans
Renovate, rehab and resell your property with a hard money loan
Interest Rate
9.25 - 11.25%
Origination fee
1.25 - 1.75%
Loan To Cost (LTC)
up to 90%
Construction Financing
up to 100%
Loan To ARV
up to 75%
Term
up to 24 months
Minimum Loan Amount
$100,000
Maximum Loan Amount
$5,000,000
Minimum FICO
650
Type of Property
Residential 1-4 units, condos, townhomes
Benefits For Borrowers
Instant Proof of Funds Letter
Interest Only Payments
Discounts for Repeat Borrowers
Instant Term Sheet
No Hard Credit Pull
No Junk Fees
All Hard Money Loans
Fix & Flip
Funds for purchase + rehab or refinance + rehab
Get up to $5,000,000
Interest rate 9.25 - 11.25%
Origination 1.25 - 1.75%
Up to 100% construction
Rent
30 year fixed product for stabilized properties
Get up to $3,000,000
Interest rate from 6.125%
Origination 1 - 2%
30-year fixed rate
Ground Up
Construction loans for residential builders
Get up to $5,000,000
Interest rate 9.75 - 11.5%
Origination 1.5 - 2%
Up to 24 months
Key Questions About Hard Money Loans
How do hard money loans work?
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.
What are hard money loans used for?
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.
What are the credit requirements for a hard money loan?
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.
What are the minimum property value requirements for a fix-&-flip loan?
The minimum loan amount of $100,000, property as-is value of $100,000 or higher
Is financing for rural properties available?
No, we do not finance rural property.
Is an appraisal required?
Yes, an appraisal with interior access is required. For projects with 5+ units, a full commercial appraisal will be required.
Hard Money Loan Pros and Cons
Pros of Hard Money Loans
Hard money loans can be approved in just minutes and close in just a few days. The lending process is much smoother than it is with traditional lenders, because the lending criteria is not as stringent. Instead of putting hard money borrowers through difficult underwriting, hard money lenders are primarily concerned with the final value of the property that an investor intends to purchase.
A hard money lender will still evaluate each borrower’s credit score during the loan application process, but there is no strict approval process and very little paper work in comparison to a traditional loan:
- Hard money lenders can offer extremely fast closing
- Hard Money Loans have flexible loan terms
- Easy loan approval
- Hard money lenders provide streamlined loan applications
- The property is used as collateral when setting the loan terms
- Extremely efficient way for real estate investors to source capital
- Hard money lenders can be used to fund a variety of different projects
- Some hard money lenders provide an Instant proof of funds letter
Cons of Hard Money Loans
The biggest disadvantage of using a hard money lender is that hard money loans typically have higher interest rates than traditional loans. While this is one of the most signficant hard money loan negatives, it’s worth keeping in mind that some hard money lenders (like New Silver Lending) offer interest only monthly repayments, and loans are meant to stay open 12-24 months. This helps to offset the higher interest rate involved with a short term real estate loan. In addition, New Silver also offers 30 Year Hard Money Loans for Rental Properties specifically.
Another big risk when working with a hard money lender is that if the borrower defaults on the loan for an extended period of time, a hard money lender can potentially force the property into foreclosure. While this is a risk, it is worth noting that many traditional mortgage lenders can actually do exactly the same thing if a borrower consistently defaults on a traditional loan.
Another drawback is that hard money lenders tend to require a larger down payment than a traditional loan. Most hard money lenders expect a down payment of 20%, although this does vary from lender to lender.
- Hard money loans have higher interest rates than traditional loans
- Hard money loans have extra costs and fees compared to traditional lenders
- A hard money loan requires a larger down payment than a normal loan
- A hard money loan may require previous real estate investing experience
- If the borrower defaults, the hard money lender can force the property into foreclosure
Hard Money Loans Near You
New Silver Lending offers fast closing hard money loans in the following US States.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Virginia
- Wisconsin
- Wyoming
Hard Money Lending Resources
New Silver’s extremely easy to use hard money loan calculator can help you analyze the ROI of a secured loan for a fix-and-flip project. It provides a quick summary of the down payment, interest rates, monthly repayment and closing costs associated with a hard money loan.
This house flip profit calculator is designed to show you how much profit you can make when executing a fix and flip property deal. It includes a detailed breakdown of Net Profit, ROI, Total Cash Invested, Return on Equity, Loan Amount, Down Payment & Monthly Loan Repayment.
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