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Hard money loans
A hard money loan is short-term financing secured by the property, not your income. Investors use it to close fast, buy distressed homes a bank won’t touch, and bridge a deal until they refinance. Expect roughly 10.00% to 13.00% interest plus 1–3 points, on 6–24 month terms.
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When to use hard money
Speed
Close in 5–10 days to compete with cash offers and win off-market deals.
Distressed property
Banks won’t finance uninhabitable homes; hard money lenders fund the purchase + rehab.
Bridge to a refinance
Acquire and stabilize, then refinance into a DSCR loan for the long term.
Hard money vs. DSCR vs. fix-and-flip
| Feature | Hard money | Fix & flip | DSCR |
|---|---|---|---|
| Term | 6–24 months | 6–18 months | 30 years |
| Typical rate | 10.00%–13.00% | ~12.50% | ~7.75% |
| Underwrites | After-repair value | After-repair value | Rent vs. debt (DSCR) |
| Income verified? | No | No | No |
| Best for | Bridge / fast close | Purchase + rehab | Stabilized rentals |
| Exit | Refi or sale | Sale | Hold |
What it costs
Rate ranges shown are illustrative 2026 market bands, not live lender quotes. The mortgage rate in the ticker is a current market estimate.
Common questions
What is a hard money loan?
A short-term, asset-based loan secured by the real estate itself. The lender cares mainly about the property’s after-repair value and your exit strategy, not your income or credit (though most still check credit).
What are hard money loan rates?
Typically 10.00%–13.00% interest, plus 1–3 points upfront, on 6–24 month terms. The speed and flexibility cost more than a DSCR or conventional loan.
How is hard money different from a DSCR loan?
Hard money is short-term bridge financing (months) for acquisitions and rehabs; a DSCR loan is long-term (30-yr) takeout financing for stabilized rentals. Many investors use hard money to acquire+rehab, then refinance into a DSCR loan.
How fast can a hard money loan close?
Often 5–10 days, since underwriting is property-focused. That speed lets investors compete with cash buyers.