Hard money pricing is driven by risk, leverage, liquidity, and execution certainty.
The lender is pricing one thing: the probability of getting repaid on time, without a messy workout.
The strongest lever you control is the file quality: clean numbers, realistic rehab, and a credible exit.
Rates and points are not one number. They move with LTV (Loan-to-Value), LTC (Loan-to-Cost), and property risk.
Speed has a cost: the faster and more flexible the capital, the more it’s priced like insurance.
Use this guide to estimate pricing, avoid false assumptions, and submit the deal in a way that earns better terms.
At a glance
- Pricing is mostly about leverage and liquidity of the asset
- Better comps and a realistic ARV (After Repair Value) usually earn better terms
- Heavy rehab and complex assets usually price higher
- First-time investors can still win with conservative structure
- The “cheapest” deal is the one that exits cleanly
- Complete submissions get better pricing and faster closes
The 8 drivers of rates and points
Hard money is asset-backed and timeline-sensitive. Pricing tends to move with these variables:
- Leverage: LTV and LTC (more leverage, more risk)
- Asset liquidity: how fast the property can sell in that market, at that price point
- Condition and rehab complexity: light cosmetic vs heavy structural work
- Exit clarity: sale vs refinance, timeline realism, backup exit
- Borrower execution: track record, contractor plan, and decision speed
- Deal size: very small or very large loans can price differently
- Title and legal complexity: liens, probate, entity issues, unclear ownership
- Speed requirement: closing in days compresses diligence and increases risk
What you can control to earn better terms
You improve terms by reducing uncertainty. The best play is not negotiation. It’s preparation:
- Provide a line-item rehab budget with milestones and contingency
- Include 3 to 6 solid comps and explain your ARV logic
- Show your exit path and a plan to hit it (timeline + tasks)
- Keep leverage reasonable; add cash if the deal is thin
- Use experienced contractors and attach bids where possible
A practical way to estimate pricing before you apply
Start with the deal profile. The closer the asset is to “easy to sell or refinance,” the more competitive pricing tends to be. If the property is unique, rural, heavy-rehab, or has title complexity, expect pricing to reflect that risk.
Model your deal using conservative assumptions:
- conservative ARV range, not an optimistic single number
- conservative holding time (add 30–60 days)
- conservative rehab budget (include contingency)
Fees you should budget for
Beyond rate and points, investor loans typically include third-party costs. Budget for:
- Title and escrow
- Recording fees
- Insurance
- Valuation (appraisal or BPO when required)
- Standard closing costs
Ask for a fee worksheet early so there are no surprises.
Next step
If you want pricing and structure on a real deal, start here: https://ambitionlending.co/hard-money-loans/
Or send the address and numbers to get a fast answer: https://ambitionlending.co/
Frequently Asked Questions
Are points the same as interest?
No. Points are an origination fee, typically charged as a percentage of the loan amount and paid at closing. Interest is the ongoing cost of borrowing during the loan term.
Why do two lenders quote different pricing on the same deal?
They may be using different leverage assumptions, different valuation approaches, different risk appetite, or different views of the exit. File quality also changes pricing.
Does higher ARV always mean better terms?
Not automatically. The ARV must be supportable with comps and a realistic rehab plan. Inflated ARV increases perceived risk and can hurt terms.
Do first-time investors pay more?
Sometimes, but not always. A strong deal, conservative leverage, and a credible execution plan can offset limited experience.
Do faster closings cost more?
Often. When timelines compress, diligence compresses. That increases risk and pricing can reflect it.
What should I send to get accurate terms?
Property address, purchase contract or payoff, rehab budget and scope (if applicable), comps and ARV, and your exit plan and timeline.
