Hard Money Loans

PROGRAM OVERVIEW

Hard money loans are short-term, asset-based financing secured by real property. Unlike traditional mortgages that focus on the borrower's creditworthiness and income, hard money loans are primarily underwritten based on the value of the collateral property — specifically its after-repair value (ARV) for renovation projects. This makes them an ideal tool for fix-and-flip investors, developers, and borrowers who need to close quickly on time-sensitive opportunities.

The hallmark of hard money lending is speed. While traditional mortgages can take 30 to 45 days or more to close, hard money loans can fund in as little as 7 to 14 days. This speed is critical in competitive markets where sellers favor buyers who can close quickly, and for auction purchases that require rapid funding. Terms are typically 6 to 24 months, giving investors enough time to renovate and sell or refinance into permanent financing.

At Xpert Home Lending, our hard money program serves experienced and first-time investors tackling fix-and-flip projects, ground-up construction, land acquisition, and other investment scenarios. We offer loan amounts from $100,000 to $3 million, with up to 90% of the purchase price and 100% of renovation costs financed. Our in-house underwriting means fast decisions, and our draw process for renovation funds is streamlined to keep your project on schedule.

COMMON QUESTIONS

Hard Money Loans FAQ

How fast can a hard money loan close?

Hard money loans can close in as little as 7-14 days, and sometimes faster for repeat borrowers or straightforward deals. This speed is possible because underwriting focuses primarily on the property value rather than extensive borrower income documentation. Having your purchase contract, proof of funds for down payment, and property information ready will help expedite the process.

What are the typical rates and fees?

Hard money loan rates typically range from 10-14%, with origination fees (points) of 1-3% of the loan amount. While these costs are significantly higher than traditional mortgages, hard money loans are short-term instruments — usually 6-18 months. The total cost is manageable when factored into a project's profit margin, and the speed and flexibility they provide can make deals possible that would otherwise fall through.

How much down payment is required?

Most hard money lenders require 10-25% of the purchase price as a down payment. The exact amount depends on the property's loan-to-value (LTV) and after-repair value (ARV) ratios. Many programs lend up to 90% of the purchase price and up to 70-75% of the ARV. For experienced investors with a strong track record, some lenders may offer higher leverage.

Can I finance the renovation costs?

Yes. Most hard money lenders will finance 100% of the renovation costs in addition to the purchase price, up to the maximum ARV limit (typically 70-75% of ARV). Renovation funds are held in escrow and released in draws as work is completed and inspected. Having a detailed scope of work and contractor bids ready at application helps streamline the draw process.

Do I need real estate investment experience?

While experience is preferred and can help you get better terms, many hard money lenders work with first-time investors. If you are new to fix-and-flip investing, expect to need a larger down payment and potentially a higher interest rate. Having a solid business plan, a reliable contractor, and a realistic project timeline can help compensate for limited experience.

NEXT STEPS

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