Hard Money Loans

Hard Money loans are short-term, asset-based loans commonly used by real estate investors to purchase or refinance properties quickly. These loans focus more on the value of the property than on personal income or traditional loan documentation.

Hard Money loans are often used for fix-and-flip projects, cash-out refinances, bridge financing, and time-sensitive transactions.

How Hard Money Loans Work

Instead of qualifying based on tax returns or employment income, Hard Money loans are approved primarily based on:

  • The property’s current value or after-repair value (ARV)
  • The amount of equity or down payment
  • The borrower’s experience (in some cases)

Because underwriting is streamlined, Hard Money loans can close much faster than traditional financing.

Common Uses for Hard Money Loans

  • Purchasing investment properties
  • Refinancing existing hard money or private loans
  • Cash-out refinances on investment properties
  • Fix-and-flip projects
  • Short-term bridge financing

Key Features

  • Short-term loans (typically 6–24 months)
  • Faster approvals and closings
  • Interest-only payments in many cases
  • Designed for investment properties, not primary residences

Down Payment & Credit

Hard Money loans generally require:

  • Larger down payments or existing equity
  • Flexible credit review compared to conventional loans
  • A clear exit strategy (sale or refinance)

Loan terms often improve with stronger equity and experience.

Benefits of Hard Money Loans

  • Fast funding for purchases and refinances
  • Flexible qualification guidelines
  • Minimal income documentation
  • Ideal for short-term investment strategies

Important Considerations

  • Higher interest rates than traditional mortgages
  • Short repayment periods
  • Best used as temporary financing

Most borrowers plan to sell or refinance into a long-term loan once the property is stabilized.

Closing Timeline

Hard Money loans typically close within 10–25 days, depending on property review, valuation, and documentation.

Is a Hard Money Loan Right for You?

A Hard Money loan can be a powerful tool if you need quick access to capital for an investment property—whether purchasing, refinancing, or repositioning a property for a future exit.

At Coast Capital, we help investors structure the right hard money financing and guide them from application through payoff or refinance with clarity and confidence.