Hard Money Loans
Speed and Flexibility for Time-Sensitive Deals
Some real estate deals can’t wait for traditional lending. A property hits the market. You have 48 hours to make an offer. Your traditional lender needs 20-30 days for closing. By then, the deal is gone. Or a distressed property emerges – someone else’s problem, your opportunity, but it needs cash quickly, and traditional lenders won’t touch it.
That’s where hard money loans come in.
Hard money loans provide fast, short-term financing secured by real estate. No income verification. No tax returns. No complicated underwriting. Just the property’s value, your down payment, and your experience. Funding in 7-14 days. Sometimes faster.
At Dream House Mortgage, we provide hard money financing for real estate investors. In real estate, timing is everything. Opportunities move fast. Traditional lenders don’t.
A hard money loan isn’t complicated. It’s capital when you need it, structured around the property’s value and your investment strategy.
Asset-Based Lending for Real Estate Investors
A hard money loan is a short-term, asset-based loan secured by real estate. Unlike traditional mortgages (which are income-based), hard money loans are property-based. The lender evaluates the property’s value and your down payment. If the property is worth enough and your down payment is substantial, you’re approved.
Here’s how it works: You identify a real estate opportunity. You contact a hard money lender (Dream House Mortgage). You provide the property details and your experience. The lender orders a quick appraisal. If the property’s value and your down payment meet the lender’s criteria, you get a pre-approval. You close in 7-14 days. You have capital for your deal.
Hard money lenders don’t care about your W-2s or tax returns. They don’t verify your income or analyze your credit deeply. They care about the property’s value. They care about your down payment (your skin in the game). They care about your experience and exit strategy.
The lender evaluates the property’s current condition and value, your equity position, and your exit strategy (sell, refinance, or hold). If the numbers work, you get approved quickly.
The result? Capital when you need it, with minimal delay and maximum flexibility.
The Real Advantages of Hard Money Financing
Everything You Need to Know About Hard Money Financing
Loan Amount Range
Loan-to-Value (LTV)
- Conservative: 60% LTV (based on property's current value)
- Standard: 65-70% LTV
- Aggressive: 75% LTV (requires strong experience/exit strategy)
LTV is the loan amount divided by the property's value. Example: $300,000 loan on a $500,000 property = 60% LTV.
Down Payment / Equity Required
- Minimum: 25-30% of purchase price
- Standard: 30-35%
- Optimal: 35-40%
Your down payment is your commitment. The larger your equity position, the more favorable your terms.
After-Repair Value (ARV) Consideration
For fix and flip deals, some hard money lenders will finance based on after-repair value (ARV), not the current property value. This allows higher LTV with the understanding that you're repairing the property.
- Conservative: 60-65% of ARV
- Standard: 65-75% of ARV
- Aggressive: 75-80% of ARV (strong experience required)
Interest Rates
- Typical range: 8-12% annually
- Can be higher (12-15%) for riskier deals or less experience
- Influenced by: deal type, property condition, LTV, your experience, and loan amount
Interest rates are higher than traditional mortgages because hard money is short-term, higher-risk lending.
Points (Origination Fees)
- Typical: 2-4 points (2-4% of loan amount)
- Example: $300,000 loan at 3 points = $9,000 upfront fee
Points are charged upfront or rolled into the loan.
Loan Terms
- Short-term: 6-12 months (fix and flip, bridge loans)
- Medium-term: 12-24 months (construction, development)
- Extended: 24-36 months (buy and hold, long-term projects)
- Extension options often available
Interest-Only vs Principal and Interest
- Most common: Interest-only during hold period (no principal payments)
- Alternative: Principal and interest payments (reduces total interest)
- Prepayment: No penalty (you can pay off early without a fee)
Property Requirements
- Single-family homes
- Multi-unit properties (2-4 units)
- Apartment buildings
- Commercial real estate
- Land
- Distressed properties
- Properties under construction
- Off-market or wholesale deals
Property Condition
Exit Strategy
Hard money lenders care about your exit plan. How will you repay the loan?
- Sell the property (fix and flip, wholesale)
- Refinance to traditional financing (after repair, after business stabilization)
- Hold and cash flow (rental property)
- Develop and sell
A clear exit strategy is essential.
Experience Requirements
- First-time investors: Possible, but terms may be stricter
- Experienced investors: Better terms, higher LTV, faster approval
- Track record: Previous successful deals matter
- References: Other investors or lenders can strengthen your application
Strategic Process Designed for Investor Success
We review the property, your experience, and your exit strategy. We do a quick evaluation of the property’s value and loan potential. We give you honest feedback on the likelihood of approval.
We order a quick appraisal (48-72 hours). We establish the property’s current value and potential value (if repair/development). We determine the loan amount based on LTV.
We structure the loan: loan amount, interest rate, points, term, and payment structure. We provide pre-approval (typically within 24-48 hours). You know your exact financing before commitment.
Underwriting is streamlined. We verify your property, experience, and exit strategy. No income verification. No tax returns. Just focused analysis of deal viability.
We close quickly (7-14 days). You get funded. You acquire the property. You execute your strategy.
We stay in touch as your project progresses. We’re available for questions or adjustments to the loan terms if circumstances change.
When you’re ready to execute your exit (sell, refinance, hold), we support you. Once the loan is repaid, we’re ready for your next deal.
Why Experienced and New Investors Choose Hard Money Financing
Benefit 1: Speed (7-14 Day Closing)
Benefit 2: Asset-Based Approval
Benefit 3: No Income Verification
Benefit 4: Works on Difficult Properties
Benefit 5: Flexible Terms to Match Your Deal
How Hard Money Loans Stack Up
Feature | Hard Money | Bank Statement | DSCR | Fix & Flip |
Approval Basis | Property value | Business deposits | Property income | After-repair value |
Income Verification | Not required | Partial (bank statements) | Not required | Not required |
Credit Score | 650+ | 640+ | 640+ | 660+ |
Interest Rates | 8-12% | 5-8% | 6-8% | 8-12% |
Points/Fees | 2-4% | None | None | None |
Down Payment | 25-40% | 10-20% | 20-30% | 20-30% |
Closing Speed | 7-14 days | 7-14 days | 7-14 days | 7-14 days |
Loan Term | 6-36 months | 15-30 years | 30 years | 6-12 months |
Best For | Quick acquisitions | Self-employed | Long-term rentals | Fix and flip |
