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Hard Money

Hard Money Lending When the Deal Cannot Wait for a Bank

Some transactions are won on certainty and calendar days, not on rate. Hard money trades a higher cost of capital for a close measured in days.

Check hard money terms 302-600-3197

Hard money is asset based lending. The collateral carries the file, and the borrower's income statement is a secondary consideration rather than the centerpiece. A lender looks at what the property is worth today, what it will be worth after your plan is executed, how much equity sits between the loan amount and that value, and how the note gets paid off. Loan to value ceilings are conservative, commonly in the 65% to 75% range, because that equity cushion is the entire risk model. Terms run short, six to twenty four months, with interest only payments and points charged at closing. Underwriting is manual and relationship driven rather than automated, which is why a clean file can fund in seven to fourteen days while a conventional lender is still ordering verifications. For auction purchases, distressed acquisitions, and time sensitive opportunities across Delaware and Pennsylvania, that timeline is frequently the entire value of the product.

Who it's for

  • Buyers at sheriff sales and foreclosure auctions where funds must be delivered on a fixed deadline
  • Investors competing against cash offers who need certainty of close more than the lowest rate
  • Borrowers with credit events or income documentation gaps that a conventional underwriter will not look past
  • Owners of properties in condition too rough for any agency backed loan to touch
  • Anyone with a defined 12 month exit through a sale or a refinance into permanent financing

Why choose this loan type

  • Funding timelines measured in days rather than the 30 to 45 a conventional file consumes
  • Approval driven by collateral, so tax returns, employment history, and debt ratios stop being obstacles
  • Terms are negotiable in ways agency loans never are, including interest reserves and custom draw schedules
  • Higher cost is contained by the short term, and a disciplined exit keeps the total dollar cost modest

Frequently asked

Why is the rate so much higher than a bank loan?+

You are paying for speed, flexibility, and risk tolerance. The lender is funding in days against an asset rather than spending weeks verifying income, and the note only lives 12 months or so. Measured as a cost of capital on a deal that closes and exits on schedule, the total dollars are usually smaller than the profit lost by missing the property.

Does my credit score matter at all?+

It matters less, not zero. Most hard money lenders set a floor somewhere in the low 600s and use the score to set leverage and pricing rather than to approve or decline. What genuinely stops a file is an open bankruptcy, a recent foreclosure, or unresolved liens against the subject property.

What happens if I cannot repay by the maturity date?+

You extend or you default, and extensions are not automatic. Most notes offer one or two paid extension options of three to six months if payments have been current and the project shows real progress. Plan the exit before you close, because negotiating one at month eleven is expensive.

Get hard money terms in writing

Give us the property, your purchase price, and your exit plan. We'll come back with leverage, points, and a realistic funding date.

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