6 Best Hard Money Lenders for 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Andrew has over a decade of experience in finance and mortgage lending. He shares his expertise in Fit Small Business’s financing content.
This article is part of a larger series on Business Financing.
The best hard money lenders should provide short-term loans for fix-and-flip and fix-and-hold investors for a variety of property types. They should also have the ability to fund in three weeks or less and provide competitive rates and fees compared to other hard money lenders. Although some require a minimum amount of investment experience, our list below does include some providers that can work with first-time investors.
Here are six of the best hard money lenders:
- Kiavi: Best overall for fast funding and low rates
- RCN Capital: Best for borrowers who want lower rates after gaining more experience
- AMZA Capital: Best for borrowers looking to flip multiple properties quickly
- CoreVest: Best for borrowers with low credit scores
- Baselane (Powered by Lendency): Best for funding smaller loans quickly
- Flip Funding: Best for funding large loans quickly
Best Hard Money Lenders At a Glance
Provider | Starting Interest Rate | Loan Amounts Offered | Flipping Experience Required | Minimum Credit Score | Speed of Funding |
|---|---|---|---|---|---|
 | 9% | $75,000 to $1.5 million | No | 660 | 10 days |
 | 10.24% | $50,000 to $10 million | No | 620 | 10 days |
 | 7% | $50,000 to $50 million | Preferred, but not required | 650 | 14 days |
 | 8% | $200,000 to $50 million | Yes | None | 21 days |
 | 9.99% | $50,000 to $2 million | No | 575* | 10 days |
 | 8.99% | $150,000 to $50 million | No | 650 | 10 days |
*Minimum credit score of 680 is required for first-time property flippers
Rates and fees for even the best hard money loans tend to be higher than traditional financing because they typically are issued to borrowers with bad credit or used to acquire properties in need of repair. Regardless of whether you’re a fix-and-flip or fix-and-hold investor, make sure you’re aware of the cost for the hard money loan and the property to ensure it’s a profitable investment for you.
Kiavi: Best Overall for Fast Funding & Low Rates
Why We Like Kiavi
Kiavi is our pick as the best overall hard money lender because it’s competitive in multiple areas. It places a large emphasis on being transparent with fees, can finance first-time investors, and provides competitive rates, large loan amounts, and quick funding.
It offers bridge loans for fix-and-flip investors, and loan amounts up to $1.5 million are available with interest rates that start at 9%. You can use its financing options to fund a new purchase, replenish cash reserves if you used your own money to repair a property, or get additional time to complete repairs on a property if it’s taking longer than expected. Funding is available for a variety of property types, including single-family homes, two- to four-unit properties, condominiums, and planned-unit developments (PUDs).
No income verification is required, so applying for a loan can be much easier since you won’t have to search for things like pay stubs, tax returns, or other tax documents. The lender also doesn’t require an appraisal for your property, which helps with speeding up the approval and funding process.
Regardless of whether you’re a new or experienced investor, Kiavi can work with you so that you’re satisfied with the result. It also rewards you the more experience you acquire. Experienced investors with at least five flips in the past 24 months will receive more competitive pricing and the ability to have contact with a dedicated account manager to oversee faster closings.
Kiavi provides a wealth of information on its website, but you can also contact one of its representatives if you have any additional questions. Visit the Kiavi website for more information.
RCN Capital: Best for Borrowers Who Want Lower Rates After Gaining More Experience
Why We Like RCN Capital
RCN Capital is our pick as the best lender for borrowers who want lower rates as they gain more investing experience. The more experience you have, the lower your starting rate could be.
Experience Level | Number of Flips of Rentals Owned | Starting Interest Rates |
|---|---|---|
New | Up to 2 flips or 2 rentals owned in the past 3 years | 10.99% |
Intermediate | 3 to 10 flips completed, or 3 to 10 rentals owned in the last 3 years | 10.49% |
Experienced | 10 or more flips completed, or 10 or more rentals owned in the last 3 years | 10.24% |
Financing options are available for single-family homes, townhomes, condominiums, and multifamily or mixed-use properties. Up to $10 million in financing is available for multifamily and mixed-use properties, while other properties are limited to $7.5 million. Loan terms are available for 12 to 18 months with a possible extension of six or more months in the event your property’s repairs take longer than expected.
To save you money on the loan, the lender only charges interest on the outstanding balance of an ARV loan. In other words, when funds are held back to pay incrementally for costs to rehab a property, you won’t be charged interest until the funds are drawn to make the repairs.
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, renovation estimates, and more.
You can visit the RCN Capital website to learn more or to submit an application.
AMZA Capital: Best for Borrowers Looking To Flip Multiple Properties Quickly
Why We Like AMZA Capital
AMZA Capital offers a fix-and-flip credit line of up to $50 million, This makes it our pick as the best hard money provider for flipping multiple properties quickly because experienced investors can draw from the line to fund several projects at once.
The fix-and-flip credit line is offered nationwide, and it can be used to fund single-family homes, condominiums, townhomes, and multifamily properties smaller than 20 units. The minimum credit line offered is $3 million with a maximum of $50 million, and interest rates are fixed for a period of up to 24 months.
AMZA Capital also offers fix-and-flip and buy-to-rent term loans of up to $2.5 million. Fix-and-flip loans will allow you to acquire a property, perform the necessary repairs and rehabilitation, and then sell the property for a profit. The lender does lend to first-time investors, although you’ll need to work with a mentor and a licensed contractor.
Buy-to-rent loans are a good option for investors who intend on acquiring, repairing, and then keeping the property as an income-producing rental. These loans have a slightly higher credit score requirement of 660 and require a minimum as-is appraised value greater than $116,000. You can get a loan term of up to 24 months with a possibility of a 12-month extension if eligible.
Visit the AMZA Capital website to learn more about its financing options and to submit an application.
CoreVest: Best for Borrowers With Low Credit Scores
Why We Like CoreVest
We’ve rated CoreVest as the best hard money provider for borrowers with bad credit because it’s the only lender on our list with no minimum credit score requirement. Instead, it places a larger emphasis on your track record, liquidity, and overall credit profile.
CoreVest offers credit lines and term loans on single-family homes, condominiums, townhomes, and multifamily properties. Credit lines can be used in a fix-and-flip or buy-and-hold transaction and are available nationwide with financing of up to 80% of the cost. Loan amounts range from $1 million to $50 million with terms of up to 24 months, although extensions may be available.
You can also apply for the lender’s bridge loans to fix and flip individual properties. Loan amounts range from $75,000 to $2 million of up to 85% of the cost. Terms range from six to 12 months with the possibility for extensions.
CoreVest does require prior flipping experience. There is no set minimum since the lender reviews all aspects of your file to make a determination, but it recommends at least three prior completed flips or three managed rental properties to improve your chances of being approved for funding.
Head over to the CoreVest website to learn more and submit an application.
Baselane (Powered by Lendency): Best for Funding Small Loans Quickly
Why We Like Baselane
Out of all the providers on our list, Baselane’s loan amount range is on the smaller end. It offers loans between $50,000 and $2 million, which makes it a good provider for those who don’t need large loan amounts. This can be helpful if you’re in a low-cost-of-living area or want to flip homes with less costly repairs needed.
Funding can be done in as soon as 10 days. Eligible properties include single-family homes, planned unit developments, and multifamily properties.
You can qualify for financing as a first-time investor with a credit score of 680 or higher. If you’re an experienced investor with at least three flips in the prior 36 months, that requirement drops to 575. You can determine your eligibility by obtaining a quote, which can be done on the lender’s website in less than 1 minute.
In addition to having an easy process for getting a quote, Baselane also has a simple process to apply and have your loan funded. Many items are automated behind the scenes, and no income verification is required. You can view the terms of your loan within minutes of applying online, and if they’re acceptable, you can upload any required documents, answer questions, and have the loan funded as quickly as 10 days.
Visit the Baselane website to get a quote or to submit an application.
Flip Funding: Best for Funding Large Loans Quickly
Why We Like Flip Funding
In addition to being able to fund loans as fast as 10 days, Flip Funding also provides loans up to $50 million. This makes it a good choice if you need a significant amount of financing quickly.
It offers multiple types of programs, including fix-and-flip loans, bridge loans, and multifamily and mixed-use loans. Fix-and-flip and bridge loans are open to first-time investors with loan amounts that range between $150,000 and $50 million. Rates start as low as 9.99% with the option to be structured as a revolving credit line.
Loans for multifamily or mixed-use properties are also available. You can apply for loan amounts between $250,000 and $10 million on properties that have between five and 500 units. Rates as low as 8.99% are available with terms ranging from 12 to 36 months.
To be eligible for financing, Flip Funding requires that you have at least a 650 credit score and no bankruptcies or foreclosures in the past two years. You can get a loan in most states, with the exception of Arizona, Nevada, South Dakota, and North Dakota.
To learn more and to apply, you can check out the Flip Funding website.
How We Determined the Best Hard Money Lenders
In choosing the best hard money providers, we looked at the following criteria:
- Interest rates and fees
- Required investor experience
- Minimum credit score
- Range of loan amounts offered
- Types of loans offered
- Speed of funding
- Customer reviews and ratings
Alternatives To a Hard Money Loan
Hard money loans can be a good way to acquire properties that are ineligible for traditional methods of financing. These loans can also be used to get funding if you have bad credit. However, hard money loans do carry higher rates and fees, and you can get another type of business loan if you want to save some money:
- 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. Compared to a hard money loan, investment property financing can be more difficult to qualify for. However, rates can be very competitive, usually in the range of 5% and 8%. If you’re interested in this type of financing, LendingTree is an online lending marketplace that allows you to choose from multiple loan offers.
- Commercial real estate (CRE) loan: 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. We recommend U.S. Bank as the best overall provider of commercial loans because of its low rates and range of commercial loans that includes Small Business Administration (SBA) loans.
- Business lines of credit: Many line of credit providers can offer up to $250,000 or more on a revolving line of credit, and interest is charged only on the amount you draw. We recommend Bluevine as it provides credit lines up to $250,000 with rates as low as 6.2%.
Frequently Asked Questions (FAQs)
How do hard money loans work for beginners?
Some hard money lenders will require you to have flipping experience or rental property ownership to obtain a hard money loan. However, lenders such as Kiavi and Baselane don’t require flipping experience, so choose one of those if you’re a beginner just getting into flipping.
How do you qualify for a hard money loan?
Qualifications for hard money loans tend to be less stringent than other CRE loans. They often require you to qualify as an incorporated business rather than an individual. While they may consider a minimum credit score (usually around 650), they often rely on your investing experience and the potential property earning capacity to determine whether you qualify for the loan.
Is hard money lending a good idea?
If you don’t need funding quickly, hard money loans aren’t a good idea. They have high interest rates, high fees, and short repayment terms. The advantage of a hard money loan is you can be funded in as little as 10 days. If you don’t need the money right away, if you have a strong credit profile, and if the property isn’t in disrepair, you should consider other types of CRE loans, such as SBA loans.
Bottom Line
Hard money loans provide a source of short-term financing if you aren’t eligible for traditional financing methods. These types of loans typically are used by borrowers with bad credit or investors looking to acquire properties in need of repairs for a fix-and-flip or fix-to-rent. Rates and fees tend to be higher than other types of financing, but the lenders on our list offer competitive rates when compared to other hard money lenders.
