Hard money loans are for investors who need a lender that underwrites the deal: the property's value, the purchase price, the rehab and the exit. Ambition Lending funds purchases, renovations, refinances and bridge loans on residential and commercial real estate, and returns a term sheet within 24 hours on most requests. Business-purpose loans only.
Hard money loan terms at a glance
| Loan size | From $100,000, no fixed maximum |
|---|---|
| Typical pricing | 8–12% interest and 2–4 points, deal-dependent |
| Fix and flip leverage | Up to 90% of purchase and 100% of rehab, max 75% of ARV |
| Bridge leverage | Up to 75% of value, 6–24 months |
| Payments | Interest-only |
| Underwriting focus | Equity, as-is value, after-repair value, rehab scope, exit |
| Rehab funds | Released in draws after inspection |
| Markets | Nationwide, including metropolitan, suburban and rural markets |
| Borrower | Business-purpose only; LLC or individual investor |
Pricing and leverage depend on the property, location, scope and exit. See hard money rates explained for how points and rate are set, and estimate your loan, monthly interest and cash to close in the hard money loan calculator.
What is a hard money loan?
A hard money loan is short-term financing secured by real estate, typically from a private lender rather than a bank. Approval rests on the collateral and the plan instead of tax returns and debt-to-income ratios, which is why investors use it for properties that need work, purchases on tight timelines and transitions to long-term debt. For the full picture, read what a hard money lender is in real estate, and compare it with bank financing in hard money vs. conventional loans.
When hard money makes sense
- You need to close a purchase quickly and with certainty.
- The property needs work and won't qualify for conventional financing as it stands.
- You plan to renovate and resell — a fix and flip loan.
- You plan to renovate, rent and refinance into a DSCR loan after stabilization.
- You need a bridge while you reposition a property or line up permanent debt.
What property types do you lend on?
- 1–4 unit residential — single-family homes, duplexes, triplexes and fourplexes, plus condos and townhomes.
- Rental property — buy and renovate with hard money, then refinance into a DSCR loan qualified on the rent; see when to refinance from hard money into DSCR and rehab-to-rent loans.
- Small and large multifamily — 2–4 units and 5+ unit apartments; see small vs. larger multifamily and multifamily bridge loans.
- Mixed-use — see mixed-use property financing.
- Commercial property — retail, office, industrial, hotels, mobile home parks and RV parks through our commercial bridge loan program.
- New construction — ground-up builds with staged draws; see new construction loans.
Land and lot loans are reviewed case by case; contact us with the deal.
How we underwrite a hard money loan
- Value and equity: as-is value, purchase price and, for renovations, after-repair value supported by comps. See how LTV works in hard money lending.
- The plan: a line-item rehab scope and budget, or a business plan for commercial property.
- The exit: sale, refinance or both, with realistic timing.
- The borrower: experience, liquidity for closing and reserves, and credit as one input. Some larger or more complex deals need more financial information.
The full checklist is in hard money loan requirements.
What a hard money loan really costs
Add up interest for the months you expect to hold the loan, the points paid at closing, and third-party costs such as title, escrow, insurance and valuation. On a $300,000 loan, 10% interest is $2,500 a month and 2 points is $6,000 at closing. A lower rate with more points can cost more on a short hold, so compare offers on total cost over your realistic timeline, not the headline rate. Check how much cash to close you need before you sign a contract.
How the process works
- Submit the deal: address, purchase contract if applicable, rehab summary and exit plan.
- Get a term sheet: within 24 hours on most requests, with any missing items listed.
- Close: we order valuation and coordinate title and escrow. Timing depends on how complete the file is and on valuation, which is usually the pacing item — see what delays a hard money closing.
- Build and draw: rehab funds are released after inspections; see how draw schedules work.
- Exit: sell, or refinance into long-term debt.
What to send
- Property address and purchase contract or current payoff.
- Rehab budget and scope, or business plan.
- Your value estimate and comps.
- Exit plan.
- Experience summary and entity documents.
More: the hard money application process, hard money closing costs and bridge loans vs. hard money. Send the deal to get terms.
Frequently asked questions
What is a hard money loan?
A short-term loan secured by real estate, underwritten mainly on the property's value, the business plan and the exit rather than personal income. Investors use it to buy quickly, renovate, or bridge to long-term financing.
What are hard money loan rates?
Ambition Lending's hard money loans are typically priced at 8–12% interest and 2–4 points, interest-only. Leverage, experience, the property and the exit set the final pricing.
Do you check credit?
Credit is considered, but it is one factor. Equity, deal fundamentals and a clear exit can matter more than a single score, and we do not publish a minimum score.
Can I use a hard money loan for a rental property?
Yes. Investors use hard money to buy and renovate a rental, then refinance into a long-term DSCR loan qualified on the rent once the property is stabilized.
Can first-time investors get a hard money loan?
Yes, depending on deal strength, leverage and the support team — for example an experienced contractor and a realistic rehab plan.
What fees come with a hard money loan?
Lender points plus third-party closing costs such as title, escrow, insurance and valuation. Your term sheet lists them.
Updated by the Ambition Lending credit team.
