Hard Money Loans

Renovate, rehab and resell your property with a hard money loan

Interest Rate

10 - 12.75%

Origination fee

from 1.875%

Loan To Cost (LTC)

up to 90%

Construction Financing

up to 100%

Loan To ARV

up to 80%

Term

24 months

Minimum Loan Amount

$100,000

Maximum Loan Amount

$5,000,000

Minimum FICO

650

Type of Property

Residential 1-12 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 10 - 12.75%

Origination fee from 1.875%

Up to 100% construction

More info

Rent

30 year fixed product for stabilized properties

Get up to $2,000,000

Interest rate from 7.5%

Origination fee 2-3%

30-year fixed rate

More info

Ground Up

Construction loans for residential builders

Get up to $5,000,000

Interest rate 10 - 13.25%

Origination fee from 1.875%

Up to 24 months

More info

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:

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 Near You

New Silver Lending offers fast closing hard money loans in the following US States.

Hard Money Lending Resources

Hard Money Loan Calculator

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.

House Flipping Calculator

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.

Do Hard Money Lenders Require Down Payment?

Reading Time: 4 minutes How To Calculate Hard Money Loan Down Payment For most borrowers, a down payment of 20% will be required in order to initiate a hard money loan. If you are an experienced house flipper, you

How Do Hard Money Loan Monthly Repayments Work?

Reading Time: 5 minutes Hard money loans have become increasingly popular with real estate investors because they can facilitate highly profitable property flips without the usual waiting time, administrative hassle and possible rejection that one could face when approaching

Are Hard Money Loans A Good Idea?

Reading Time: 7 minutes The Short Answer Hard money loans can be a very attractive option for real estate investors. With fast closing, flexible loan terms and less stringent lending criteria, hard money loans can be a good idea

What Happens if you Default on a Hard Money Loan?

Reading Time: 6 minutes The Short Summary Sometimes investors have a hard time securing traditional financing. Banks don’t like taking chances on risky loans and when you don’t live in the property, they sometimes consider it to be a

What are Points on a Hard Money Loan?

Reading Time: 3 minutes If you have ever shopped around for quotes for a loan for a personal or investment property, you have more than likely heard the term “points”. So, what exactly are points? Paying points is a

How Do Hard Money Lenders Work?

Reading Time: 3 minutes Real estate investors need access to cash fast. Not only do you need money to snag great deals, but you need money to fix the homes up too. Without access to fast cash, you could

The Ultimate Guide To Hard Money Lending

Reading Time: 8 minutes Hard money loans can be a highly successful way to invest in real estate and build financial independence. The key is understanding how they differ from traditional mortgage loans, what type of projects they are

What are the Hard Money Loan Credit Requirements?

Reading Time: 3 minutes Hard money loans are a great way to secure financing to buy a home fast. They don’t rely on your personal qualifying requirements as much as they rely on the property itself. This makes it

Hard Money Loan Rates: What To Know Before You Apply

Reading Time: 6 minutes When you’re comparing hard money loans, you’ll quickly find that the rates will differ from lender to lender. There are several reasons for this; different locations, lenders with varying requirements and even the specific project