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Reviewed
If you’re considering flipping or rehabbing an investment property, or you’re between properties and need fast cash for a down payment, a hard money loan could be the way to go. All of the hard money lenders on this list offer up to 90% loan-to-cost (LTC) ratio and finance up to 100% of rehab costs.
However, each lender also excels in different areas. So, whether a quick closing timeline is a top priority or excellent customer service is a must, you’ll likely find a hard money lender here to fit your needs.
| Company | Forbes Advisor Rating | Best For | Closing timeline | Availability | Preapproval available online? | LEARN MORE | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| HouseMax Funding |  |
5.0 |  |
Best Hard Money Lender For Accessibility | 10 days | 50 states and Washington D.C. | Yes | View More | ||
| Easy Street Capital |  |
5.0 |  |
Best Hard Money Lender For Fast Closing | 30 days | 42 states | Yes | View More | ||
| Express Capital Financing |  |
4.5 |  |
Best Hard Money Lender For Loan Product Variety | 7 to 10 days | 47 states and Washington D.C. | Yes | View More | ||
| RCN Capital |  |
4.5 | |
Best Hard Money Lender For Lowest Rate | 10 days | 45 states and Washington D.C. | Yes | View More | ||
| Jet Lending |  |
4.5 | |
Best Hard Money Lender for Customer Service | 7 days | 50 states and Washington D.C. | Yes | View More | ||
| Park Place Finance |  |
4.5 | |
Best Hard Money Lender for First-Time Fix and Flippers | 5 to 7 days | 47 states and Washington D.C. | Yes | View More | ||
| Kiavi |  |
4.5 | |
Best for Enterprise Solutions | 10 days | 33 states and Washington D.C. | No | View More |
Though hard money loans work well for some borrowers, they’re also called “loans of last resort” for a reason—they tend to be risky.
Hard money loans are short-term secured loans where the lender is typically an individual investor, group investor or company, unlike a traditional financial institution or mortgage lender. Due to the high-risk nature of these loans, traditional lenders don’t usually offer them. Consequently, someone who wants to “fix and flip” an undervalued property quickly may need to opt for a hard money loan.
Lenders face significant risk with hard money loans because of the potential burden that can result if the borrower defaults, which is why these loans almost always come with high interest rates. Borrowers have a short repayment term and risk losing their property if they default.
Those who take out hard money loans typically need money quickly and most often use these loans to finance investment properties or commercial real estate. Additionally, homeowners or real estate investors who want to buy a property before selling their current property may also use bridge loans, repaying the lender with the equity from their existing property once it’s sold.
Since hard money loans use the property as collateral, hard money lenders tend to provide less financing than traditional loans. This way, if a borrower defaults, the lender can often recapture the loan investment—and perhaps more—by selling the property. Also, requiring a larger down payment from the borrower better protects the lender against market fluctuations.
Hard money loans begin with the borrower only paying the monthly interest on the loan. Once the loan term ends, the borrower repays the principal in one lump sum. If the borrower manages to sell the property before the loan term ends, that means they’ll pay less interest and consequently pocket more profit.
Though the process to get a hard money loan differs from a traditional mortgage based on approval speed, flexibility and required underwriting documentation, getting a hard money loan still requires that you take certain steps.
Additionally, hard money loans often don’t cover all the expenses associated with the purchase and rehabilitation of the property. Consequently, you should estimate in advance how much extra cash you’ll need up front for a down payment to cover the difference.
Here’s an overview of what to expect when applying for a hard money loan:
As with any home loan, hard money loans have upsides and downsides. Here are the most notable ones.
| Pros | Cons |
|---|---|
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Quick approval process. Borrowers typically receive funds within a few weeks or days.
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Interest rates can range between a minimum of 8% to as high as 18% of the loan’s value.
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More flexible terms and less rigorous underwriting process than traditional lenders.
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Potentially higher origination and loan-servicing fees and closing costs.
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Cash gives borrowers a competitive edge.
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Short-term repayment requirements can make it difficult for borrowers to pay back the loan on time.
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We graded these hard money lenders based on features that have a meaningful impact on borrowers seeking a hard money loan, including interest rates, loan options, accessibility, closing time and customer service.
We award bonus points if a hard money lender provides multi-family or build-to-rent loans, covers the full rehab cost, offers a maximum loan-to-cost (LTC) on any of its hard money loans and has a fully online loan process.
Our scoring method is broken down as follows:
We chose to focus on these core elements to bring forward hard money lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for hard money lenders.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
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