What is HARD MONEY? Who are Hard Money lenders?

Asked by Kyle, Dallas, TX Wed Jun 13, 2012

Let's say there are credit issues. Issues dealing with CC debt but no pay history issues, liens, or defaults. Just high debt that has always been serviced. Scores probably 700 .

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Pportoff, Other Pro, Morgan Hill, CA
Wed Jun 11, 2014
Hard money lenders are useful in many ways. They are more flexible in terms of credit, they close faster than traditional lenders. They offer short-term 6-12 month loans usually, with 10%-16% interest. My new lender - Lending Home Funding Corp, depending on LTV can offer lower rates than that, and they go up to 80% LTV.

1-855 408-7694
2 votes
One strong hard money source which offers Up To 90% ARV Hard Money Upfront! 100% Rehab Costs Rolled Into Loan plus Stated Income-Stated Assets, No Upfront fee, No hidden fees is EZhardMoney.resqfirmllc.com
Flag Tue Apr 21, 2015
Normalina Ma…, Agent, Winter Park, FL
Thu Jun 14, 2012
Hi Kyle,

Due to the economy Hard Money funding has become most sot after. Hard Money is a complete turnkey financing solution for the acquisition, improvement and flipping of single family & commercial income properties, and non-performing notes! While banks have modified their lending criteria on non-owner occupied residential properties many investors are looking for other sources to fund their investment properties and choose Hard Money aka Private Money Loans.

We are a different type of funder because our private money loans are asset based, we will look at the whole deal and the borrower to determine if your deal should be funded. We specialize in being able to look at your scenario and let you know if there is a shot at funding, or what needs to be done so it can be funded. If there is a way to fund your deal we will. We take the common sense method and require most investors to have "skin in the game" when looking at all of our funding requests.

One of the biggest misconceptions today in the market is that companies like ours will "purchase" the property for you if there is a lot of equity in the property. This is totally false. We need to make sure that you have money in the deal. You are probably asking why. This is simple, if you look back to the crash of 2008, one of the main factors in defaults was that the property owner did not have much financial incentive to keep paying his loan. We need to make sure that does not happen so we would be able to fund your future deals as well. Because each state has its own real estate climate, we make sure that we are knowledgeable about what is going on with the real estate market in your state, so we can provide the best lending programs for you, our client. We are currently looking to fund loans of 100k or greater and up to a 65% loan to value max.

Feel free to take a look at what we offer: http://privatemoneyman.webs.com/lendingbasics.htm

I hope I answered your questions thoroughly. Feel free to contact my partner Al Mills, CFO of High Rises, LLC at 347-450-5769 or myself.

Normalina Martin, Private Lender
1 vote
Normalina, Thanks for the info!!!
Flag Mon Jun 18, 2012
Bruce Lynn, Agent, Coppell, TX
Wed Jun 13, 2012
Hard Money lenders are somewhat like pawn shops (no offense to pawn shops or hard money lenders either one) They lend on the asset, not the person necessarily. The rates are therefore much higher and typically have higher closing costs. Short term loans designed to allow you to purchase, rehab, and flip the property. You want to get in and out. While rates on a normal mortgage might be 3-4% right now...hard money might be 8-10% with 2% closing costs.

We have a list of hard money lenders if you decide to go this route.
1 vote
Bruce I am interested in finding a hard money private lender to purchase my home in Texas within 2-3 months. Can you please email me list to
laurasoltero@yahoo.com..Thank you.
Flag Sun Mar 29, 2015
So Bruce, are they still making low down, interest only loans to creditworthy with a good LTV on the property?
Flag Wed Jun 13, 2012
Michael Brow…, Agent, Allen, TX
Thu Jun 12, 2014
Hard Money Lenders are harder to find than mainstream lenders and they don't come cheap. But they can help hard-luck borrowers make bad situations better -- and sometimes, they're a consumer's only choice.
0 votes
John Broussa…, , Houston, TX
Sat Nov 2, 2013
Hardmoney is a loan based more on the asset and equity in the property and credit is not a issue. We offer hardmoney and a Subprime Product which is less expensive than hard money with lower rates.

Subprime Lending is Back!

With all the guideline changes in the in the lending industry that has locked out self employed borrowers, borrowers who had to short sell there properties due to being upside down and other senarios. By now we had hoped that the powers that be would have put a program in for self employed borrowers and not disqualify them because of there write offs. California is the only state currently able to still offer stated loans, why just California I don;t know. The Subptime program is not a stated program, income doc are required, W2's, tax returns or bank statements to verify income. The loans require 20 to 35% down. Debt to Income ratio varies depending on borrowers income, fico scores accepted down to 500. If you have been denied or turned down for any reason give me a call to discuss your loan request.

John Broussard
Newbridge Home Loans
713-777-9996 Ext 103
Direct: 832-429-4389
0 votes
elijahali21, Home Buyer, Philadelphia, PA
Fri Oct 25, 2013
Sometimes you can find money lenders in pawn shops. They will sometimes hold your things as collateral and give you a loan.
0 votes
Jan Fender, Home Buyer, New York, NY
Tue May 14, 2013

You can find the answers to what had money is or who hard money lenders are by looking at this site....

Its a faq sheet that tells you more about hard money, lending, and who you should choose for the type of investment you want. I really recommend reading it and then looking for more answers on the internet.

Hope I helped.
0 votes
Kurt Carlton, , Dallas, TX
Wed Jul 11, 2012
You can explore http://www.ShermanBridge.com but it is for investment properties only
0 votes
Kenneth "Ken…, Agent, Dallas, TX
Wed Jun 13, 2012
Talk with any lender of your choice and they can explain all your mortgage questions. Most hard money lenders want a very high interest return and would probably make it almost impossible for you to own or pay the loan. It would not be worth it. My opinion.

Again, I am not a lender, you need to talk with them.


0 votes
Kevin D. Bro…, , Dallas, TX
Wed Jun 13, 2012
Hard money can be tricky. Most of the investors I work with use cash. That doesnt mean a good deal cant be had using hard money, you just need to make sure you do it right. Even if you dont want use me for the project rehab/ listing, just call me and I can point you in the right direction.

Kevin D. Brown
KDB Properties
0 votes
Kevin .........What do you mean in saying " Even if you don't want to use me for the project rehab/listing". Could you elaborate. Thanks
Flag Wed Jun 13, 2012
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Jun 13, 2012
Underwriting guidelines are there to protect you. If you try to circumvent them and get hurt in the process there is no one to blame but yourself. Protect yourself, make a loan officer show you why you can afford the loan, a little different approach.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
John Greer, Agent, Dallas, TX
Wed Jun 13, 2012
I work with lenders that can usually get loans approved sometimes down to 580 and usually always at 620. Contact me and I can either get you pre approved to buy or work with credit repair to fix your credit and get you to a buy able position as quick as possible. I look forward to working with you.

Best Regards

John Greer
United Real Estate Dallas
214-460-8381 Cell/Text
0 votes
John Greer, Agent, Dallas, TX
Wed Jun 13, 2012
Hard money lenders are usefull for investors. They are generally 6 month to 12 month loans usually 12-16% with 1-4points origination. Flips are what we investors use these for and that is all they are good for as the money is given as the job is completed in stages generally with inspections of the work. Let me know if this is something that interests you and I can help you find a reputable hard money lender as I am a long time investor and know some of the best. I look forward to assisting you in any way I can

Best Regards,

John Greer
United Real Estate Dallas
214-460-8381 Cell/Text
jgreer@unitedrealestatedallas.com http://www.johngreerhomes.com
0 votes
Marco Bolado, , San Antonio, TX
Wed Jun 13, 2012
Most look past credit and underwrite the deal with more emphasis on the collateral. Granted you need to be able to carry the proposed payment. Not all hard money is short term and that expensive. I can do deals starting at 12% from 12 month to 5yrs. If you get into a 6 mo deal you better know what your doing and things have to really fall in place to be in and out of a rehab in 6 mo's in our current market. Contact me for more details.

0 votes
Dixon Wong, Agent, Dallas, TX
Wed Jun 13, 2012
Hi Kyle,

Hard money lenders are usually private investor. Their loan term is usually from 6 months to up to a year at a 15% APR. They are generally used by house flipper and not recommended for your home steam property.

If your credit score is at 700. My lender can definitely help you with your financing. You can email me at dixondfw@gmail.com and I can connect you with them. We can generally help anyone who has a credit score with 630 so you are way better than our average clients.

JP and Associates Realtors
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Wed Jun 13, 2012
Hard money lenders charge exorbitant interest rates and a lot of fees. The loan is usually only for a short term. And there is usually a pretty high debt to income ratio, so that the borrower has a high stake in paying back the loan as well. These loans are used mostly by investors who are 'flipping' a home, renovating it quickly and reselilng at a profit. Investors consider the high interest rates and fees to be just a cost of doing business and, since it's a very short term loan, worth the cost in order to gain the profit at the end of the day. These lenders are not easy to find and rarely used by home owners.

If your credit score is 700, I would recommend you talk to a local mortgage banker, someone who specializes in writing mortgages, and find out if there isn't something you can do in the short term to either qualify to buy right now or in the near future. It sounds like that would be a much better option for you.
0 votes
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