No bank bureaucracy. No 45-day waiting game. Here's exactly how the hard money loan process works — step by step.
Every step is designed for speed. While banks are still collecting paperwork, you're already closing.
Fill out a simple online application — it takes less than 2 minutes. Tell us about the property, your purchase price, estimated rehab costs, and how you plan to repay the loan (your exit strategy).
Within 24 hours, you'll receive a detailed term sheet showing your interest rate, loan amount, origination points, and all fees. Everything is transparent — no hidden costs, no surprises.
The lender orders an appraisal or BPO (Broker Price Opinion) to confirm the property's current value and after-repair value (ARV). This determines your maximum loan amount based on the loan-to-value ratio.
Hard money underwriting is asset-focused — not income-focused like banks. The lender verifies the property value, reviews your rehab budget, confirms your exit strategy, and runs a basic background check.
Once approved, you close at a title company — just like any real estate transaction. Loan documents are signed, the deed of trust is recorded, and funds are wired directly to you or the escrow company. You own the property.
Apply in 2 minutes. Get a custom quote within 24 hours. No credit check. No obligation.
See If You Qualify →See why investors choose speed and flexibility over traditional bank financing.
| Factor | Hard Money | Bank Loan |
|---|---|---|
| Closing Speed | 7-14 days | 30-60 days |
| Approval Based On | Property value + deal quality | Income, credit, employment |
| Credit Score Needed | Flexible (often 600+) | 680+ typically required |
| Documentation | Minimal | Extensive |
| Interest Rate | 9%-14% | 6%-8% |
| Loan Term | 6-24 months | 15-30 years |
| Down Payment | 10%-25% | 3%-20% |
| Best For | Investment properties, speed | Primary residence, long-term |
The higher cost of hard money is the price of speed and flexibility. When a deal requires fast closing, the interest premium pays for itself through deals you'd otherwise miss.
Most hard money loans close in 7-14 business days. Some lenders can close in as few as 5 days for repeat borrowers with clean deals. Compare this to the 30-60 day timeline for conventional bank loans.
Most lenders run a soft credit pull, but credit score is not the primary approval factor. They focus on the property value and your exit strategy. Borrowers with scores as low as 580-600 can qualify, though better credit typically gets better rates.
For the initial application, you only need property details, purchase price, rehab budget estimate, and your exit strategy. No tax returns or pay stubs are required upfront. Additional documentation may be requested during underwriting, but it's far less than what banks require.
Typically 10-25% of the purchase price. Experienced investors with strong track records can sometimes finance up to 90% of the purchase price plus 100% of rehab costs, meaning as little as 10% out-of-pocket plus closing costs.
Interest rates typically range from 9% to 14% annually in 2026, with 1-3 origination points (1 point = 1% of the loan amount). Your rate depends on deal quality, your experience level, loan-to-value ratio, and the property's condition. Read our full rate guide →
Most lenders offer 3-6 month extensions for a fee (typically 0.5-1 origination point). Always discuss extension options before signing your loan documents. Having a solid exit strategy — and a backup plan — is critical to avoiding default. Read about exit strategies →
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