If you’re looking to fund a fast-paced fix-and-flip in the U.S., hard money loans are often the go-to option. These short-term, asset-based loans can help you move quickly on distressed properties—when time is money, speed matters. In this guide, we’ll walk through everything you need to know about hard money loan guide US essentials and fix and flip funding, all explained in clear, everyday language.
What Is a Hard Money Loan?
A hard money loan—also known as a bridge or private money loan—is a short-term loan secured against real estate, not your credit score. These loans are the backbone of fix and flip funding, helping investors buy, renovate, and resell homes quickly .
One of the best things about hard money loans is how fast they close—often within days—not weeks like traditional mortgages.
Key Features of Hard Money Loans
| Feature | What You Need to Know |
| Term Length | 6–24 months, occasionally up to 36 months |
| Interest Rates | Between 8%–15%; sometimes higher with private money |
| LTV / LTC | Typically 60–80% of purchase or ARV |
| Repayment | Monthly interest-only payments and a balloon payment at maturity |
| Approval | Based more on the property’s After Repair Value (ARV) than on credit score |
Why Investors Use Hard Money for Fix-and-Flips
- Speed & flexibility: You can close deals fast—skin in the game matters more than credit history.
- Access to non-traditional deals: Works well for unconventional properties or auctions that banks avoid.
- Portfolio leverage: Allows you to take on bigger projects without depleting personal funds.
How to Qualify for Hard Money Loans
Hard money lenders focus less on credit and more on:
- Property metrics: Purchase price, ARV, and rehab budget.
- Down payment / skin in the game: Typically 10–30% upfront.
- Experience & plan clarity: A solid exit plan and rehab strategy help secure better terms.
First-time fix-and-flippers can still qualify if they present a clear plan and work with trusted contractors.
Smart Steps for Fix-and-Flip Funding
1. Shop Lenders Carefully
Look for:
- Cloud-based speed and transparency
- Experience in your local market
- Competitive rates and fees �citeturn0search9turn0search12turn0search7
Top-rated lenders in 2025 include Kiavi, Easy Street Capital, Constitution Lending, and New Silver.
2. Calculate the Numbers
- ARV: What the home will be worth post-renovation?
- Financing gap: Difference between ARV and what lender will fund.
- Holding costs: Mortgage interest, insurance, taxes—budget carefully .
3. Understand Loan Terms
- Interest rate, fees, and loan duration
- Points charged upfront (often 2–6%)
- Prepayment penalties or balloon maturity terms
4. Prepare a Solid Rehab & Exit Plan
- Provide bids from contractors and realistic repair budgets
- Define your exit approach—sell, 1031 exchange, or refinance
5. Close Fast
With ARV, clear plan, and equity established, lenders can fund in as little as 7–15 days .
Pros & Cons of Hard Money Loans
Pros
- Fast access to capital
- Flexibility—even with imperfect credit
- Useful for auctions and competitive buys
Cons
- Higher interest rates and additional loan points
- Short payoff timeline can pressure you if delays occur
- Collateral risk if project stalls or market dives
Real-World Investor Insight
Recent activity shows investors paying 11–13% interest for speed—especially in competitive markets. One investor closed a deal in Louisville in just eight days using private funds, illustrating why quick closing beats cheaper traditional loans in fast markets.
Fix-and-Flip Funding Checklist
- Estimate ARV and compare with lender’s LTV
- Gather contractor bids and plan exit strategy
- Shop multiple lenders (Kiavi, Easy Street, Constitution)
- Review terms: interest, points, penalties
- Secure financing documents for fast underwriting
- Close swiftly, rehab efficiently, and sell as planned
Final Takeaway
A hard money loan guide US tells you that success in fix and flip funding comes from fast access to capital, a clear rehab plan, and strategic lender selection. You’re trading higher costs for speed and flexibility—but if managed well, the returns can greatly outweigh those costs. Just be sure you have the numbers in order, a strong timeline, and backup plans if delays occur.
