Hard money loans for real estate investors: you're buying speed, so price all of it.

A short-term loan from a private, non-bank lender, secured by real estate and sized mainly on the property's value and your exit plan rather than your income. Real estate investors use hard money to buy and renovate property quickly, usually for 6–24 months on interest-only payments, then repay it by selling or refinancing.

In 2025 federal HMDA data covering 66,029 short-term investor loans, the median note rate was 10%, down from 10.75% in 2024. Non-bank lenders came in at a 10.45% median, with the middle half of their loans between 9.75% and 11%. Points and fees come on top, and on a short loan they add more to the annual cost than the rate suggests.

A point is 1% of the loan, paid at closing: $2,650 on the 2025 median short-term investor loan of $265,000. Published programs charge 0–2 points, often plus a flat document fee. Because points are paid once on a loan that lasts months, they raise the annual cost more than they appear to: at an assumed 10.25% rate, 1 point on a 6-month loan works out to roughly 12.25% a year.

Not quite. Hard money comes from lending businesses and funds with published programs, underwriting and servicing. Private money loans usually come from an individual — a past partner, a local investor, a relative — on terms you negotiate. They can be cheaper or more flexible, but document them with a note and a recorded mortgage or deed of trust drafted by an attorney.

Published timelines run about one to three weeks, and some lenders advertise closings in days when title, appraisal and entity documents are ready. The appraisal and title work usually set the pace. Repeat borrowers close faster because their entity documents and track record are already on file.

On a purchase, lenders that finance 85–90% of the price leave you 10–15% to bring, plus closing costs, points and the first interest payments. First-time investors and heavy rehabs usually get less leverage. When the rehab budget is fully financed, the down payment and reserves are most of your cash outlay.

It depends on the job. On rehab loans, lenders published 85–100% of the purchase price plus up to 100% of the rehab in October 2026, capped at 70–80% of after-repair value. Bridge loans on property needing little work ran 70–85% of current value. Across the 66,029 short-term investor loans in 2025 HMDA data, the median combined loan-to-value was 70%.

The full loan balance, due in one payment at maturity. Hard money loans are almost always interest-only, so monthly payments never reduce the principal; 95.1% of 2025 short-term investor loans in HMDA data had a balloon. On a $265,000 loan at an assumed 10.25%, you pay about $2,264 a month, then the full $265,000 when the term ends, from a sale or a refinance.

Most of them are about time. The whole balance is due at maturity, so a slow sale or refinance means an extension fee or a default. Lenders usually require a personal guarantee, and many loans are full recourse, which puts your other assets behind the debt. Notes typically raise the rate on default. And points are paid up front whether you keep the loan six months or two years.

Many don't. Hard money lenders size the loan on the property's value and your exit, so tax returns, W-2s and a debt-to-income ratio are often not required. They do check that you have the cash to close and carry the project, usually from bank statements, and most pull credit. One lender's liquidity floor is the greater of $15,000 or a quarter of the rehab budget, on top of closing costs.

Most do. Published minimum scores ran from 600 to 700 in October 2026, and the score moves leverage: one lender's cap rises from 65% of after-repair value at 650 to 70% at 700. The property carries more weight than it would with a bank, but expect your credit to be pulled.

Rarely on its own. Most hard money and bridge programs exclude raw land and lots, and some exclude parcels over about 5 acres. Land is usually financed as part of a build: ground-up construction lenders published land advances of 60–75% of the lot in October 2026, with up to 100% of construction costs released in draws as the house goes up.

Yes, at many lenders. A hard money or bridge loan on a property you own can pull equity for a purchase or a rehab. In 2025 HMDA data, non-bank cash-out refinances among short-term investor loans had a 10.5% median rate, about the same as the 10.45% on purchases. If you bought within the last 6 months, one lender treats it as a delayed purchase; after that, it's a seasoned refinance on current value.

Yes — it's the standard exit for a flip you decide to keep. A DSCR (debt service coverage ratio) loan is a long-term rental mortgage approved on how far the rent covers the monthly payment. Once the property is rented, it pays off the hard money loan. Expect a cash-out limit of about 75% of appraised value and roughly 90 days of seasoning; some lenders waive seasoning when they made the original loan.

No. An investor's hard money loan is a business-purpose loan, so the property must be one you and your family won't occupy. A home you'll live in, even one that needs a full renovation, calls for a residential purchase or renovation mortgage from a consumer lender.