The best hard money lenders should be able to provide competitive rates on short-term loans for fix-and-flip or fix-and-hold investors. These lenders should also be able to issue funding in two weeks or less. Since the best hard money loans will be different for everyone, we’ve selected lenders that issue funding for various property types and have flexible eligibility criteria, with many offering the ability to work with first-time investors.
If you’re looking for the best hard money loans, you can choose from our list:
- Kiavi: Best overall for rates, customer service, and easy approval process
- Flip Funding: Best for borrowers with low credit scores
- AMZA Capital: Best for large loans and flipping multiple properties quickly
- HouseMax Funding: Best for fast funding speeds
- RCN Capital: Best for borrowers who want lower rates after gaining more experience
- Center Street Lending: Best personalized service for experienced investors
Best Hard Money Lenders At a Glance
Estimated Starting Interest Rate | Loan Amounts Offered | Maximum Loan Term | Minimum Credit Score | Funding Speed | |
|---|---|---|---|---|---|
| 9.25% | $100,000 to $2.5 million | 24 months | 660 | 10 days |
| 7.5% or 9.99% | $150,000 to $10 million | 36 months | 600 | 10 days |
| 9% to 13% | $50,000 to $50 million | 24 months | 650 | 14 days |
| 7% to 14% | Up to $9 million | 24 months | 680 | 7 days |
| 10.24% | Up to $10 million | 18 months | 620 | 10 days |
| Varies | $100,000 to $10 million | 24 months | 650 | 14 days |
Kiavi: Best Overall for Rates, Customer Service & Easy Approval Process
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Rates & Terms | |
Estimated Starting Interest Rates | 9.25% |
Loan Amount | $100,000 to $2.5 million |
Loan Term | 12, 18, and 24 months |
Loan Repayment Method | Interest-only with balloon payment |
Loan-to-Value (LTV), Loan-to-Cost (LTC) & After Repair Value (ARV) | 95% LTV and 80% ARV |
Loan Fees & Closing Costs | 1.5% to 2% of the loan amount |
Time to Funding | As fast as 10 business days |
Qualifications | |
Credit Score | 660 |
Flipping Experience Required? | No |
Why We Like Kiavi
Kiavi offers fix-and-flip loans for the purchase or rehab of investment properties. It is transparent with its starting rates and has an easy application process. It charges no application fees, requires no appraisal, and can approve loans with no income verification. For these reasons, it can fund many of its loans in as little as 10 days.
Its fix-and-flip loans can be used for a new purchase, delayed purchase refinance, or seasoned finance on a nonowner-occupied property as follows:
- New purchase: Funds can be used to purchase the property and pay for renovation costs.
- Delayed purchase refinance: If you used your own money to initially purchase a property, this loan restores your original cash position within six months of the property purchase.
- Seasoned finance: If you’ve owned the property for more than six months, this loan can give you additional funds to complete your fix and flip.
As you work with Kiavi and gain more experience as an investor, you’ll also get more benefits. For example, investors with at least five closed deals in the past 24 months can qualify for a dedicated account manager to oversee faster closings and offer discounted closing fees.
To learn more or to apply, you can visit the Kiavi website. You can get prequalified online with a soft credit pull that has no negative impact on your credit score. There are also no application fees, upfront costs, or obligations to accept any loan offers.
Flip Funding: Best for Borrowers With Low Credit Scores
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Rates & Terms | |
Estimated Starting Interest Rates |
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Loan Amount |
|
Loan Term |
|
Loan Repayment Method | Interest-only with balloon payment |
LTV, LTC & ARV |
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Loan Fees & Closing Costs | 2% to 5% of the loan amount |
Time to Funding | 10 days |
Qualifications | |
Credit Score |
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Flipping Experience Required? | No |
Why We Like Flip Funding
Compared to the other lenders on our list, Flip Funding can offer the largest amount of funding in the shortest amount of time with the longest repayment period. Its programs include fix-and-flip loans, bridge loans, and multifamily/mixed-use loans. This lender can also provide financing to foreign nationals and first-time investors.
Details on loan terms, rates, and other eligibility requirements are detailed on the lender’s website. Flip Funding offers funding in nearly every state, with the exception of the following:
- Arizona
- South Dakota
- Nevada
- North Dakota
Flip Funding also offers commercial loans and new construction loans, although the funding speeds are much slower and may not meet your needs if you are in the market for a hard money lender.
Check out the Flip Funding website to learn more or to apply.
AMZA Capital: Best for Large Loans & Flipping Multiple Properties Quickly
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Rates & Terms | |
Estimated Starting Interest Rates | 9% to 13% |
Loan Amount | $50,000 to $50 million |
Loan Term | 12 to 24 months |
Loan Repayment Method | Interest-only with balloon payment |
LTV, LTC & ARV | 80% LTC |
Loan Fees & Closing Costs | 2% to 5% lender fees plus $999 closing costs |
Time to Funding | 2 to 4 weeks |
Qualifications | |
Credit Score | 650 |
Flipping Experience Required? | Preferences for experienced flippers with 5-plus flips; can work with first-time flippers with a mentor and a licensed contractor |
Why We Like AMZA Capital
AMZA Capital offers hard money loans for fix-and-flip investors looking to conduct rehabs on properties. Depending on your qualifications, needs and goals, you can apply for its term loan or line of credit program.
For its term loans, you can get anywhere from $50,000 to $2.5 million in financing. Allowable transaction types include refinances, cash-out transactions, straight acquisitions, and acquisition and rehabs. The minimum purchase price must be at least $75,000. AMZA Capital has the flexibility to work with brand-new flippers—as long as they have a mentor and licensed contractor on the team.
Investors looking to flip multiple properties in a short period or who want access to larger funding amounts can apply for AMZA Capital’s fix-and-flip credit line. You can get $3 million to $50 million in funding for single-family homes, condos, townhomes, and multifamily properties with fewer than 20 units.
Visit the AMZA Capital website to learn more or to submit a loan application.
HouseMax Funding: Best for Fast Funding Speeds
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Rates & Terms | |
Estimated Starting Interest Rates | 7% to 14% |
Loan Amount | Not stated, but generally up to $9 million |
Loan Term | 6 to 24 months |
Loan Repayment Method | Not stated |
LTV, LTC & ARV | Not stated |
Loan Fees & Closing Costs | 1% to 4% of the loan amount (estimated) |
Time to Funding | As fast as 7 days |
Qualifications | |
Credit Score | 680 recommended |
Flipping Experience Required? | No |
Why We Like HouseMax Funding
If you need financing quickly as a fix-and-flip investor, HouseMax Funding is a good option as it offers the fastest funding speed of the lenders in our guide. Visiting the HouseMax funding website, you’ll immediately be greeted with a pop-up, advertising the ability to get a hard money loan in as little as seven days.
One downside to HouseMax Funding is that it does not provide as much information on its website compared to other providers in our list. Rather, you’ll need to make a phone call or provide your contact information for a return call to learn details about its products. The upside is that the company claims it can provide preliminary decisions in a matter of minutes.
HouseMax Funding is also a direct lender, which it states is a feature that helps it keep costs low. Funding is available nationwide, with eligible uses including house flips, rehabs for rental properties, renovation costs, and construction expenses.
To learn more or to apply, visit the HouseMax Funding website.
RCN Capital: Best for Borrowers Who Want Lower Rates After Gaining More Experience
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Rates & Terms | |
Estimated Starting Interest Rates |
|
Loan Amount |
|
Loan Term | 12 to 18 months (fix and flip and multifamily) |
Loan Repayment Method | Interest-only with balloon payment |
LTV, LTC & ARV |
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Loan Fees & Closing Costs | 3% to 6% of the loan amount |
Time to Funding | 10 days |
Qualifications | |
Credit Score | 620 |
Flipping Experience Required? | No |
Why We Like RCN Capital
RCN Capital offers fix-and-flip loans for nonowner-occupied one- to four-family properties, townhomes, condos, multifamily homes, and mixed-used properties. Its starting rates vary depending on the level of experience you have.
Experience Level | Starting Interest Rate | |
|---|---|---|
New | Up to 2 flips in the last 3 years | 10.99% |
Intermediate | 3 to 5 flips in the last 3 years | 10.49% |
Experienced | 10+ flips in the last 3 years | 10.24% |
With RCN Capital, interest is only charged on the outstanding balance of your loan rather than the rehab holdback portion. This can be a way for you to save some money as you won’t be paying for funds you aren’t using. The lender also charges no prepayment penalties, so you can pay off the loan more quickly to further reduce your interest expenses.
In addition to the qualification requirements listed above, RCN Capital also requires a minimum as-is property value which varies depending on the type of property being acquired. These minimums are listed below:
- $50,000 for single-family homes
- $25,000 per unit for two- to four-family properties
- $35,000 per unit for multifamily and mixed-use properties
As part of the application process, RCN Capital typically requires a set of standardized documentation. This can include a property appraisal, bank statements as proof of funds for a down payment, and renovation estimates.
You can visit the RCN Capital website to learn more or to submit an application.
Center Street Lending: Best Personalized Service for Experienced Investors
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Rates & Terms | |
Estimated Starting Interest Rates | Varies |
Loan Amount | $100,000 to $10 million |
Loan Term | 6 to 24 months |
Loan Repayment Method | Interest-only payment options available |
LTV, LTC & ARV | 85% LTV, 80% LTC, 75% ARV (but may vary by loan program) |
Loan Fees & Closing Costs | 1% to 5% of loan amount (estimated) |
Time to Funding | As fast as 14 days |
Qualifications | |
Credit Score | 650, but may vary by loan program |
Flipping Experience Required? | Yes |
Why We Like Center Street Lending
Center Street Lending offers different types of loan programs depending on your needs and goals. You can choose its fix-and-flip loans, rental property loans, bridge loans, or ground-up construction loans. Each may have varying rates, terms, and qualifications from the figures listed in the table above.
A major benefit of working with Center Street Lending is that it offers in-house servicing and in-house fund control, features that allow it to provide a seamless experience and a higher level of customer service. To be eligible for its lending programs, however, you’ll typically need to have a strong track record of success as an investor and good credit and finances.
Borrowers should also be aware that while Center Street Lending offers financing in most states, it does not offer nationwide coverage. With that being said, it does mention the ability to lend in certain other states on a case-by-case basis. You can visit the Center Street Lending website to see where it can fund normally. If your state is not listed, however, you should not let this deter you as you may still be able to get financed on an exception basis.
To learn more or to begin the process, visit the Center Street Lending website. Once you complete the online process, you’ll be contacted by a loan origination manager within 24 hours to further discuss your needs.
How We Chose the Best Hard Money Lenders
We used the following criteria in selecting the best hard money lenders:
- Interest rates and fees
- Required investor experience
- Minimum credit score and other qualification requirements
- Eligible industries and nationwide availability
- Amount of financing offered
- Application, approval, and funding speeds
- Customer reviews and ratings
Pros & Cons of Hard Money Loans
| PROS | CONS |
|---|---|
| Offers the ability to get funding more quickly than other loan types | Tends to carry higher rates and fees than traditional forms of financing |
| Typically has easier qualifications requirements for credit, finances, and property condition | Requires down payments that are usually higher than other loans |
| Can get more flexible loan terms and repayment options | Requires faster repayment, usually anywhere from 24 to 36 months |
Alternatives To Hard Money Loans
Rates and fees for hard money loans tend to be higher, and you can check out our guide on how to get a small business loan to improve your chance of getting the lowest advertised rate. You can also consider the following alternatives for better pricing:
- Investment property financing: You can use these types of loans to resell a property for a profit, or to keep it for income-producing purposes as a rental. Compared to a hard money loan, investment property financing can be more difficult to qualify for. However, rates can be very competitive, usually in the range of 5% and 8%. You can read our guide on investment property financing to see if this could be a good fit for you.
- Commercial real estate (CRE) loan: If you don’t need funds quickly, a CRE loan can offer more competitive rates and fees while still allowing you to get cash to purchase, refinance, or renovate a property. There are different types of these loans, and you can learn more about how you can get the best pricing in our guide on CRE rates.
- Business lines of credit: Many line of credit providers can offer up to $250,000 or more on a revolving line of credit, and interest is charged only on the amount you draw. We recommend Bluevine as it provides credit lines up to $250,000 with rates as low as 6.2%. Visit Bluevine to find out more about its credit line.
Frequently Asked Questions (FAQs)
Some hard money lenders will require you to have flipping experience or rental property ownership to obtain a hard money loan. However, lenders such as Kiavi can work with individuals who have no flipping experience.
Qualifications for hard money loans tend to be less stringent than other CRE loans. They often require you to qualify as an incorporated business rather than an individual. While they may consider a minimum credit score (usually around 650), they often rely on your investing experience and the potential property earning capacity to determine whether you qualify for the loan.
If you don’t need funding quickly, hard money loans aren’t a good idea. They have high interest rates, high fees, and short repayment terms. The advantage of a hard money loan is you can be funded in as little as 10 days. If you don’t need the money right away, if you have a strong credit profile, and if the property isn’t in disrepair, you should consider other types of CRE loans, such as Small Business Administration (SBA) loans.
Bottom Line
Hard money loans tend to have more flexible qualification requirements. They’re often used by fix-and-flip investors to acquire properties that otherwise would be ineligible for traditional financing due to needed repairs. They can also be a good option for borrowers who have been unable to get approved for a loan elsewhere due to bad credit or other factors. In exchange for the added flexibility in eligibility criteria, however, you’ll generally pay higher interest rates compared to other financing options.
