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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CRE Bridge vs CRE Permanent Loan

One finances the plan. The other finances the result.

The choice isn't cheap versus expensive, it's whether the property's current income can pass a permanent lender's tests today. Permanent lenders underwrite in-place NOI against LTV, DSCR, and debt yield, and agency programs want the asset already stabilized, so a property mid-lease-up or mid-renovation can't be sized yet. A CRE bridge loan funds that gap: short, interest-only, priced for risk, and built to be paid off. Once the asset performs, the permanent loan is what you live with, which is why its exit terms matter as much as its rate.

CRE Bridge

Value-add, pre-stabilization

CRE Permanent

Stabilized, long-term hold

Property condition

Value-add, pre-stabilization

Stabilized commercial

Loan amount

Up to $10M

Sized by program, not preset

Term

Up to 24 to 36 months

Long-term permanent

Payments

Interest-only

Amortizing

Max leverage

Up to 75% LTV

Program-specific, by LTV, DSCR, debt yield

Exit

Paid off at refinance or sale

Yield maintenance, defeasance, or declining premium

Bottom line

A CRE bridge loan finances the business plan; a CRE permanent loan finances the result. Take the bridge when the asset can't yet clear a permanent lender's occupancy and coverage tests, then term out once it can, which is the path USAM runs, bridging the deal and placing the permanent debt in house through agency multifamily, insurance, and wholesale channels. Read the permanent loan's exit terms before you sign a decade of them.

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

Common questions

What does "stabilized" mean to a commercial permanent lender?

How is a CRE bridge loan sized differently than a permanent loan?

Why does a permanent loan's exit cost more than a bridge's?

Related comparisons

Bridge Loan vs DSCR LoanShort-term capital to reposition, then long-term money to hold.DSCR Loan vs Hard Money LoanLong-term rental financing versus short-term project capital.

Still not sure which fits?

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