6 Best Hard Money Lenders

The best hard money lender will have varying characteristics depending on your specific needs. However, top lenders should have a combination of competitive rates, a wide range of loan terms, fast funding speeds, and flexibility in eligibility criteria.

Hard money loans are generally used for real estate transactions, with the value of the collateral being a primary factor in qualification rather than things like credit scores, revenue, or prior experience as an investor. With that said, these are items that can vary by lender.

Since there’s no one-size-fits-all solution for lending, I’ve selected lenders with varying features and characteristics to cater to multiple types of loan applicants. Here are my picks for the six best hard money lenders:

• Kiavi: Best overall for rates and easy approval process
• RCN Capital: Best for experienced investors & personal service
• Flip Funding: Best for low credit scores
• Easy Street Capital: Best for quick access to funds
• Center Street Lending: Best for seasoned investors
• AMZA Capital: Best for large loans and flipping multiple properties

Best hard money lenders at a glance

Kiavi: Best overall for rates & easy approval process

Why we like Kiavi

Although there’s no lender that can be the absolute best in every category, Kiavi is one that comes close. In addition to highly competitive rates, it offers an easy and quick approval process that requires no appraisal and no income verification.

With Kiavi, you can apply for its fix-and-flip loan program which allows you to acquire or refinance investment real estate. Eligible properties must be non-owner occupied and be classified as a single-family residence, manufactured home, 2-4 unit dwelling, condominium, or Planned Unit Development (PUD).

Depending on how long you’ve held the investment property, you can get financing with Kiavi under one of the following scenarios:

• New purchase: Funds can be used to purchase the property and pay for renovation costs.
• Delayed purchase refinance: If you used your own money to initially purchase a property, this loan restores your original cash position within six months of the property purchase.
• Seasoned finance: If you’ve owned the property for more than six months, this loan can give you additional funds to complete your fix and flip.

An added benefit of working with Kiavi is that you’ll be able to qualify for better rates and terms as you gain experience as an investor. You’ll generally see benefits starting from the point you can document five closed deals in the last two years, with perks including a dedicated account manager to oversee and provide guidance on subsequent loan closings. This can ultimately help you fund more quickly, and you’ll also qualify for discounted closing costs.

To learn more or to apply, visit the Kiavi website. You can get prequalified online with a soft credit pull that has no negative impact on your credit score. There are also no application fees, upfront costs, or obligations to accept any loan offers.

RCN Capital: Best for experienced investors & personal service

Why we like RCN Capital

RCN Capital was my pick for experienced investors because of the fact that its rates are tied to the number of property flips you’ve completed in the last three years. The table below shows the corresponding interest rates based on your experience level:

With RCN Capital, interest is only charged on the outstanding balance of your loan rather than the rehab holdback portion. This can be a way for you to save some money as you won’t be paying for funds you aren’t using. The lender also charges no prepayment penalties, so you can pay off the loan more quickly to further reduce your interest expenses.

In addition to the qualification requirements listed above, RCN Capital requires a minimum after-repair property value, which varies depending on the type of property being acquired. These minimums are listed below:

• $100,000 for single-family homes
• $100,000 for 2-4 family properties
• $350,000 for multifamily and mixed-use properties

As part of the application process, RCN Capital typically requires a set of standardized documentation. This can include a property appraisal, bank statements as proof of funds for a down payment, and renovation estimates. However, the application process is simple and can be completed online. You can visit the RCN Capital website to learn more.

Flip Funding: Best for low credit scores

Why we like Flip Funding

Note: It offers funding in nearly every state, with the exception of AZ, NV, SD, and ND.

Flip Funding makes this list as the best option for borrowers with lower credit scores who have large financing needs and need flexible qualification requirements. Although Easy Street Capital has one of the lowest minimum credit score requirements in this guide, we chose Flip Funding for its overall flexibility and variety of loan offerings. Also, compared with the other lenders in this guide, Flip Funding can offer the largest amount of financing in the shortest amount of time with the longest repayment period.

It offers various loan programs such as fix-and-flip loans, bridge loans, as well as multifamily/mixed-use loans. It can also provide financing to foreign nationals and first-time investors. Details on loan terms, rates, and other eligibility requirements are listed on the lender’s website.

The application process is simple and is usually reviewed within the same day. You can visit the Flip Funding website to learn more about loan offerings or submit an application.

Easy Street Capital: Best for quick access to funds

Why we like Easy Street Capital

Easy Street Capital offers a variety of financing options, including fix-and-flip loans, rental loans, and construction loans. Its fix-and-flip loan program, known as “EasyFix,” offers competitive starting rates and has a quick disbursement and approval timeline, making it a viable option for investors who are looking to close quickly and may be competing with other offers for a property. In fact, I chose it as one of our top picks because it has the quickest funding speed within this guide.

It’s also worth noting that this provider offers the lowest minimum credit score requirement on our list, making it accessible to a wide variety of borrowers. Financing opportunities are available nationwide, with a few exceptions. You can visit Easy Street Capital’s website to ensure financing is offered within your state.

Notably, there are no appraisal requirements or prepayment penalties necessary to facilitate the loan, saving you more money in applicable fees. Eligible property types include residential properties with 2-10 units.

The application process is simple and requires little documentation. Upon review and approval of your application, you’ll be provided with a term sheet within 24 hours. To learn more, visit the Easy Street Capital website and submit an application, or speak to a representative.

Center Street Lending: Best for seasoned investors

Why we like Center Street Lending

A major benefit of working with Center Street Lending is that it offers in-house servicing and in-house fund control, features that allow it to provide a seamless personalized experience and a higher level of customer service. To be eligible for its lending programs, however, you’ll typically need to have a strong track record of success as an investor and good credit and finances. These reasons are what made it my choice for the best personalized service for seasoned investors.

Similar to RCN Capital, Center Street Lending offers different types of loan programs depending on your needs and goals. You can choose its fix-and-flip loans, rental property loans, bridge loans, or ground-up construction loans. Each may have varying rates, terms, and qualifications depending on your intended use of funds. Notably, when compared with the other lenders in this guide, it’s the only one with required flipping experience to be considered eligible.

To learn more or to begin the process, visit the Center Street Lending website. Once you complete the online process, you’ll be contacted by a loan origination manager within 24 hours to further discuss your needs.

AMZA Capital: Best for large loans & flipping multiple properties

Why we like AMZA Capital

AMZA Capital is a hard money lender that provides funding for fix-and-flip investors looking to conduct rehabs on properties. Depending on your qualifications, needs, and goals, you can apply for its term loan or line of credit program.

Like Flip Funding, it offers higher loan amounts compared with other lenders listed here—and it’s set apart by its various loan programs. Allowable transaction types include refinances, cash-out transactions, straight acquisitions, and acquisition and rehabs; however, the minimum purchase price must be $75,000.

It made my list for investors looking to flip multiple properties in a short period or wanting access to larger funding amounts, as those needs can be fulfilled by AMZA Capital’s fix-and-flip credit line. You can get funding for single-family homes, condos, townhomes, and multifamily properties with fewer than 20 units. Keep in mind that approval and disbursement can take a few weeks, so it may not be the best option if you need funds immediately.

This lender has the flexibility to work with brand-new flippers—as long as they have a mentor and licensed contractor on the team. Visit the AMZA Capital website to learn more or to submit a loan application.

How I chose the best hard money loans

I used the following criteria in selecting the best hard money lenders:

• Interest rates and fees
• Required investor experience
• Minimum credit score and other qualification requirements
• Ease of application
• Eligible industries and nationwide availability
• Amount of financing offered
• Application, approval, and funding speeds
• Customer reviews and ratings

How to choose a loan provider

When shopping around for an applicable hard money loan provider, there are a few factors you should consider before entering into a loan agreement. Consider the following:

• Determine your financing needs: Before choosing a lender, you should determine exactly how much funding you will need, how you plan to repay loan funds, and what you can afford as a monthly payment.
• Review qualification requirements set by the lender: Qualification criteria will vary from lender to lender. That said, it’s best to review their minimum requirements before submitting an application. In addition to the value and condition of the property, criteria such as credit score, time in business, and annual revenue are sometimes also considered. By meeting these criteria, you can increase your odds of approval.
• Compare loan rates and terms: To ensure you get the best deal and get loan terms that fit your budget, you should compare loan details, such as rates and fees, among the lenders you’re considering.

Alternatives to hard money loans

Hard money loans won’t be the best financing option for everyone. In the event that you don’t qualify for a hard money loan or are simply exploring all of your financing options, you can consider the following alternatives:

• Investment property financing: You can use these types of loans to resell a property for a profit or to keep it for income-producing purposes as a rental. However, compared with a hard money loan, investment property financing can be more difficult to qualify for. Check out our top-recommended investment property loans.
• Commercial real estate (CRE) loan: There are a variety of CRE loans available for investment properties. If you don’t need funds quickly, a CRE loan can offer more competitive rates and fees while still allowing you to get cash to purchase, refinance, or renovate a property. You can learn more about how you can get the best pricing in our guide on CRE loan rates.
• Business line of credit: This can offer flexible financing options since you can borrow on an as-needed basis with interest charged only on the balance. As a revolving credit facility, you can request a draw and repay the balance over time, and many of the best business credit line providers offer fast funding speeds and flexible qualification requirements.
• Fast business loan: Although you may not be able to get as much funding compared to a hard money loan, the best fast business loans can supplement other sources of funding you have available if you need to cover construction costs on an existing investment property.
• Other self-employed loans: Our list of the best self-employed business loans can provide funding for nearly any business-related purpose, including covering repair or construction costs for existing real estate. Loan types vary and include equipment financing, personal loans for business use, business credit cards, and more.

Frequently asked questions (FAQs)

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Bottom line

The best hard money loans should offer flexible qualification requirements, quick access to funds, and competitive rates and terms. They’re typically used by fix-and-flip investors who can take advantage of the quick financing and short repayment terms. They can also be an option for other investors who don’t qualify for other forms of CRE financing, although they often come with higher rates and fees. Before proceeding with this route, make sure it meets your business needs and budget.