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.

Getting Funded · 4 min read

How Fast Can a Hard Money Loan Close?

The short answer

Hard money can close far faster than a bank, often in 5 to 7 days. Learn what drives the timeline and how to close as fast as possible.

A hard money loan can close in as few as 5 to 7 days, versus the 30 to 60+ days a bank typically takes. Because a private lender uses its own capital and decides in house, the timeline depends mostly on how fast the file comes together, not on a committee.

Why is hard money faster than a bank?

The lender decides in house, with no outside underwriting committee.
Approval is asset-based, so there is no lengthy income and tax-return review.
Capital is the lender's own, so funding is not waiting on a secondary market.

What actually drives the timeline?

The biggest variables are outside the loan itself: title, insurance, and your documents. A clean title, a ready entity, a clear scope of work, and a responsive borrower are what turn a two-week close into a one-week close.

How to close as fast as possible

Order title early and clear any issues up front.
Have your LLC and operating agreement ready.
Bring the purchase contract, scope of work, and budget on day one.
Respond to document requests the same day.

Note that loan types differ: bridge and fix and flip close fastest, DSCR rental loans take a bit longer for the appraisal and rent verification, and SBA runs much longer because it is fully documented.

Frequently asked

How long does a hard money loan take to close?

Often 5 to 7 days for bridge and fix and flip loans, compared with 30 to 60+ days for a bank. DSCR rental loans take a little longer, and SBA loans much longer.

What slows down a hard money closing?

Usually title issues, insurance, or slow document turnaround from the borrower, not the lender's underwriting. A clean file closes fast.

Can a hard money loan close in 48 hours?

A term sheet can come the same day on a complete file, and we typically fund within 48 hours of clear title, subject to underwriting. The main variable is how fast title and insurance come together, which is why a full close typically takes 5 to 7 days.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Fix and Flip CRE Bridge Transactional Funding

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Hard Money vs Private Money Hard Money vs Conventional Loan

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