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Hard money loans

Expect 10% to 13% interest plus 1 to 3 points, on a 6 to 24 month term, with funding in about a week. 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 will not touch, and bridge a deal until they refinance into long-term debt.

Rate band
10%–13%
Points
1–3
Term
6–24 mo
Max LTV (ARV)
70–80%
Typical close
5–10 days
30-yr mortgage
6.67%
DSCR loan
7.75%
Hard money
11.50%
Data source
Live Aug 15, 2026

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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.

Plan the exit before you borrow. A DSCR refinance needs the stabilized rent to cover the new payment, and lenders want a DSCR of about 1.2. On our live Investor Yield Index, only 4 of 18 tracked metros clear that line today: Cleveland, Memphis, Birmingham, and Chicago. If your flip sits in a market that does not cash-flow at current rates, the clean exit is a sale, not a long-term hold. See which markets qualify →

Hard money vs. DSCR vs. fix-and-flip

FeatureHard moneyFix & flipDSCR
Term6–24 months6–18 months30 years
Typical rate10%–13%~12.50%~7.75%
UnderwritesAfter-repair valueAfter-repair valueRent vs. debt (DSCR)
Income verified?NoNoNo
Best forBridge / fast closePurchase + rehabStabilized rentals
ExitRefi or saleSaleHold

What it costs

Expect 10%–13% interest, plus 1 to 3 points (each point equals 1% of the loan, paid at closing). Most loans run 70 to 80% LTV on after-repair value, and some lenders add an origination or processing fee. The all-in cost is high. What you buy with it is speed and the ability to fund deals a conventional lender will not.

Rate ranges shown are typical 2026 market bands, not live lender quotes. The 30-year mortgage rate in the ticker is a current market estimate; the metro yield data behind our markets list is live from Zillow public feeds.

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%–13% 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.

Related

DSCR loans → Fix & flip loans → Cash-flow markets →