The practical path to getting funded — what a direct lender actually looks at, what you’ll need, and how a hard money loan closes in days instead of weeks.
If you’ve found an investment property that needs to close fast — or one a bank won’t touch because it’s distressed — a hard money loan is usually the answer. The good news is that getting one is far simpler than a conventional mortgage, because the property carries the underwriting, not your tax returns. This guide walks through exactly how to get a hard money loan, what a direct lender actually looks at, and how to put yourself in the strongest position to close.
A hard money loan is short-term, asset-based financing secured by the property itself. For the full breakdown of how the product works, see our hard money loan hub; below is the practical path to getting funded.
Step 1: Find a Deal That Pencils Out
Everything starts with the deal. A hard money lender underwrites the property’s value and, on a rehab, its after-repair value (ARV) — so the first thing to nail down is whether the numbers work. Pull real comparable sales, estimate your rehab budget honestly, and confirm there’s enough spread between your total cost and the ARV. A useful rule of thumb is the 70% rule: your purchase plus rehab should stay within about 70% of the after-repair value. Run the math before you call any lender — our deal estimator does it in a minute.
Step 2: Choose a Direct Lender, Not a Broker
Where you borrow matters as much as how. A direct lender funds its own loans and makes its own decisions, which means faster answers and no middleman adding cost or delay. A broker passes your file down a chain, and on a time-sensitive deal that lag can cost you the property. Ask any lender point-blank whether they lend their own capital and underwrite in-house.
Step 3: Submit the Property and the Plan
Because the loan rides on the asset, the application is light. You’ll provide the basics on the property — purchase price or current value, the after-repair value with comps, the scope and budget of any renovation, and your exit plan (sell or refinance). You won’t need two years of tax returns, W-2s, or a debt-to-income calculation. A legitimate lender will pull a credit report, but there’s no minimum credit score with us — a lower score adjusts your terms, not your eligibility.
Step 4: Get Your Terms and Lock the Leverage
Once the lender reviews the deal, you’ll get a term sheet with the loan amount, rate, points, and how much you’ll bring to closing. On a fix-and-flip, leverage can run up to 90% of the purchase and 100% of the rehab for qualified borrowers, with the rehab released through draws as the work is completed. The stronger your deal and track record, the better your terms.
Step 5: Close — Often in Days
With the asset underwritten instead of your income, closings move fast — often within a week or two on a clean file. The main timing variables are the appraisal and clear title, not a bank’s committee schedule. You can typically close in the name of an LLC, keeping the loan off your personal credit.
What You'll Need to Get Approved
What You'll Need to Get Approved
After You Close
A hard money loan is short-term by design — six to twenty-four months — so the exit is everything. If you’re flipping, you repay from the sale. If you’re holding, you refinance into long-term financing such as a DSCR loan once the property is stabilized, which is the core of the BRRRR strategy. If you need to bridge a timing gap, a bridge loan keeps the deal alive. And if your project is a rehab-to-sell, our fix and flip financing is built for exactly that.
Frequently Asked Questions
There’s no minimum credit score with us. We pull a hard credit report, and a stronger score improves your rate and leverage, but a blemish that would stop a bank loan usually won’t stop a hard money deal. The property and your plan carry the underwriting.
Often within a week or two on a clean file. Because the property is underwritten instead of your income, there’s far less paperwork — no tax returns, no employment verification, no slow committee. The appraisal and title work are usually the gating items.
It depends on the deal. On a strong fix-and-flip we can fund up to 90% of the purchase and 100% of the rehab, so your cash at closing may be limited to points, closing costs, and reserves. On a straight purchase without renovation, expect to bring more equity.
No. First-time investors are fundable — the deal and the exit matter more than your track record. Experience mainly helps you qualify for the highest-leverage, lowest-out-of-pocket structures.
Yes, and most investors do. Hard money loans are business-purpose loans, so closing in an LLC is fully supported and keeps the financing off your personal credit report.