Hard Money Loan Requirements
AAPL Member · Direct Lender Since 2016 · NMLS #1979189
People come to a hard money loan expecting the same wall of paperwork a bank throws up — two years of tax returns, W-2s, a debt-to-income ratio that has to land in a narrow band. So the first thing worth saying is what a hard money loan does not require: it doesn’t hinge on your personal income, and there’s no minimum credit score to clear. A hard money loan is short-term, asset-based financing secured by the property, and the requirements follow from that one fact — we’re underwriting the deal, not your paycheck. Below is what actually matters when you apply, written from the perspective of a direct lender that’s funded these loans since 2016.
The short version: bring a deal that makes sense, enough cash or equity to share the risk, and a clear plan to pay the loan back. Everything else is detail. Here’s how those pieces break down.
The Property Comes First
The single most important “requirement” is the property itself, because it’s the collateral. We look at two values: what the property is worth today, and — for a rehab or flip — its after-repair value (ARV), what it’ll be worth once your renovation is done. On a fix and flip we size the loan so that your total purchase-plus-rehab stays within roughly 70% of that ARV, which protects your margin and our position. A deal with real spread between your cost and the finished value is the strongest application you can bring; a thin deal with little room is the hardest, regardless of how good your credit is.
The property must also be an investment property — we lend on non-owner-occupied 1–4 unit residential, multifamily, and commercial assets, never on a primary residence.
Your Down Payment or Equity
Hard money is high-leverage, but it isn’t no-skin-in-the-game. For experienced borrowers we can fund up to 90% of the purchase price and 100% of the rehab cost, but you’ll still bring points, closing costs, and reserves to the table, and on many deals a real down payment. The amount you bring scales with the deal and your track record: the stronger the spread and the more projects you’ve completed, the closer you get to the maximum leverage. A first-time borrower on a tighter deal should expect to bring more.
If you already own the property, your equity can stand in for a cash down payment — which is exactly how a cash-out or bridge loan against an owned asset works.
A Clear Exit Plan
Hard money is short-term — typically a few months to a couple of years — so we underwrite to how the loan gets paid off. There are really only two exits: you sell the property (a flip), or you refinance into longer-term financing such as a DSCR loan once it’s stabilized and leased (a BRRRR hold). A credible, specific exit is a genuine requirement, not a formality. “I’ll sell it” backed by realistic comps and a rehab scope is fundable; a vague plan is not.
Credit: Reviewed, Not a Gatekeeper
We pull a hard credit report — any legitimate lender does, and a true “no credit check” loan isn’t a real product. But there is no minimum credit score. A lower score doesn’t disqualify your deal the way it would at a bank; it adjusts your terms. Stronger credit earns better rates and higher leverage, while a weaker score is offset with a higher rate, lower LTV, or additional reserves. We’re looking for red flags like a recent foreclosure or unresolved judgments more than a specific number.
Entity, Experience, and Reserves
Most investors close in an LLC, which is fully supported and often recommended for liability protection — you’ll provide basic entity documents. Experience isn’t strictly required, and we work with first-time investors, but it influences leverage: a proven track record unlocks the highest-leverage, lowest-out-of-pocket structures. And we want to see reserves — enough liquidity to carry the interest payments and cover surprises during the project, since rehabs rarely run exactly to plan.
Hard Money Loan Requirements at a Glance
Hard Money Loan Requirements at a Glance
What You'll Need to Provide
The document load is far lighter than a bank’s. Expect to provide the purchase contract (or proof of ownership on a refinance), your rehab budget and scope for a renovation deal, comps or an appraisal supporting the ARV, your entity documents, and proof of funds for your down payment and reserves. Notably absent: tax returns, W-2s, and pay stubs. Our loan document checklist walks through the full list, and our hard money loan estimator helps you size a deal before you apply. When you’re ready, compare where pricing sits on our hard money loan rates today page.
Frequently Asked Questions
There’s no minimum credit score. We pull a hard credit report, but a low score doesn’t disqualify your deal — it adjusts your terms, with a higher rate, lower leverage, or more reserves offsetting weaker credit. The property and your exit plan carry far more weight than your score.
It varies with the deal and your experience. For experienced borrowers we can fund up to 90% of the purchase and 100% of the rehab, so the cash you bring may be limited to points, closing costs, and reserves. Tighter deals and first-time borrowers generally require a larger down payment.
No. Hard money is underwritten on the property and your exit plan, not your personal income, so there are no tax returns, W-2s, or pay stubs required. This is the core reason hard money closes far faster than a bank loan.
No, we work with first-time investors. Experience isn’t a hard requirement, but it influences your leverage and pricing — a proven track record unlocks the highest-leverage structures, while a first-timer should bring a well-analyzed deal and may put more down.
Yes, and most investors do. Hard money loans are business-purpose loans secured by the property, so closing in an LLC is fully supported and usually recommended for liability protection. You’ll provide basic entity documents during underwriting.
Wondering if your deal qualifies?
Tell us the property, the numbers, and your exit. We underwrite the deal, not your paycheck — and we’ll tell you fast.