Private Money Loans
Asset based financing built for speed and for deals that do not fit a conventional box.
Private money, sometimes called hard money, is underwritten primarily on the property rather than on tax returns and pay stubs. That shift is what makes it fast.
Investors use it for fix and flip projects, quick closings, properties in need of repair, and situations where conventional timelines simply will not work.
How private money is underwritten
The core questions are what the property is worth today, what it will be worth after repairs, and how much skin you have in the deal. Experience with similar projects strengthens the file and improves pricing.
- Loan sized against purchase price and after repair value
- Rehab budget can often be financed in draws
- Exit strategy is reviewed up front
Exit strategy matters
Every private money loan needs a clear exit: sell the property, refinance into a rental loan, or pay off from another source. We map that exit at the start so the short term is not a surprise.
Costs to plan for
Rates and points are higher than conventional financing. The tradeoff is speed and flexibility, so the numbers need to work inside your project budget and timeline.
Documents to gather
The document list is short compared with an agency loan.
- Purchase contract and property details
- Scope of work and rehab budget
- Proof of funds for the down payment and reserves
- Track record of prior projects if available
Advantages
- Fast closings
- Property condition is not a dealbreaker
- Minimal income documentation
- Rehab funds available in draws
Things to consider
- Higher rates and points
- Short repayment window
- Business purpose and investment properties only
- Requires a credible exit plan
Common questions
How fast can this close?
Many private money deals fund within one to two weeks, and faster when title and the appraisal or valuation are ready.
Can I use this for my primary home?
No. Private money is for business purpose and investment properties.
What down payment is required?
It varies by deal, generally driven by the purchase price, the after repair value, and your experience.
Program disclaimers
- * Higher interest rates apply
- ** For a 30-year, fixed-rate loan
- Program details are informational only and are not an offer for extension of credit or a commitment to lend. Terms are subject to change without notice.
Ready to explore Private Money Loans financing?
Start a conversation with a licensed loan officer, or begin your application whenever you're ready.