How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

Direct private lending, nationwide in most states

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Assignment vs Double Close

The real question is whether assignment is even open to you.

This isn't a preference between two fee structures, it's a check on whether one of the two routes is closed before you price anything. An assignment moves your contract rights and never puts you on title, so it costs you no purchase capital, but it only works if your A-side contract allows it and your end buyer's loan does too. A double close is the answer once assignment is closed: you actually buy and resell, which is the leg USA Mortgage's transactional funding pays for. Both structures are regulated wholesaling under a growing set of state statutes, so confirm your structure with a local attorney before you sign the A-side contract.

Assignment

Transfer contract rights

Double Close

Buy, then resell

What transfers

Contract rights, not title

Two deeds, same day

Who takes title

End buyer only

You, then the end buyer

Purchase capital

None from you

A-to-B funding

Term

No holding period

Days, not weeks

If contract bars assignment

Needs seller's written consent

No assignment involved

End buyer on FHA

Not eligible, any timing

Not eligible inside 90 days

Bottom line

Check the assignment route first, because it costs you no purchase capital and skips a second closing when it's open. It closes the moment your A-side contract bars assignment without the seller's written consent, or your end buyer is using FHA financing, which cannot involve a sale or assignment of the sales contract at any interval. When it's closed and you still want the deal, the double close is the structure that survives it, and USA Mortgage's transactional funding funds the A-to-B leg so you can close the B-to-C.

Rates and terms shown are typical figures, subject to underwriting and market conditions. Not a commitment to lend.

Common questions

Can I assign my contract if my end buyer is getting an FHA loan?

Why would a seller refuse to let me assign the contract?

Do I need a license to assign a contract in my state?

Does USA Mortgage fund my contract assignment?

Related comparisons

Transactional Funding vs Hard MoneyThe buyer on your C side decides which one you need.Hard Money vs Private MoneySame asset-based idea, different source and flexibility.

Still not sure which fits?

Tell us about your deal and we'll point you to the right structure. No obligation.

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