Best Hard Money Lenders 2019

Hard money lenders offer short-term loans to purchase and renovate properties. Hard money lenders charge higher rates but offer faster funding turnaround and, sometimes, no credit criteria. We researched over 20 hard money lenders comparing rates, terms, qualifications, application processes, funding turnaround, and reviews to compile a list of our top eight below.

8 Top Hard Money Lenders 2019

How We Determined the Best Hard Money Lenders

Fix-and-flip investors need residential and commercial short-term loans that fund quickly and can be prepaid without hefty penalties. Long-term investors can also benefit from hard money loans by using them to renovate or season a property or finance rental portfolios.

We determined the top hard money lenders by looking at the following criteria:

• Rates: Hard money lenders charge premium interest rates for short-term loans; hard money loan rates tend to be lower.
• Fees: Hard money lenders charge average origination and lender fees up to 3%.
• Loan terms: Hard money loan terms are usually 12 to 24 months; many lenders don’t have prepayment penalties for early repayment.
• Qualifications: Most hard money lenders require a minimum credit score of around 620, and place most of the qualifications on the property itself as well as the investor’s background and experience.
• Funding time: The best hard money lenders can fund in roughly 10 to 15 days, allowing both short- and long-term investors to compete with all-cash buyers, closing deals quickly.
• Customer service: The best hard money lenders are typically online lenders who offer a higher level of customer service than traditional hard money lenders.
• Borrower reviews: How customers rated their experience with the best hard money lenders we reviewed.

Choosing the best hard money lender means knowing how quickly they can fund, borrower qualification requirements, terms, and rates. Don’t assume all hard money lenders offer loans in your state, as some are geared toward local transactions. Investors looking for hard money loans in their area should check out our hard money lender directory.

LendingHome: Best Overall Hard Money Lender for Residential Real Estate

Our top hard money lender for residential real estate is LendingHome. They offer competitive leverage at 90% loan-to-cost (LTC) and 100% of rehab, short-term rates starting at 7.5%, flexible terms, and a minimum credit score of 620. You can get a rate via their easy online application in three minutes.

LendingHome Rates, Terms & Qualifications

LendingHome offers short-term interest rates starting at 7.5%, which is competitive with industry averages. However, the typical rate is between 9% and 12%. They charge lender fees between 1.5% and 2.5%, and have a required minimum credit score of 620.

LendingHome Rates

LendingHome issues hard money loans with interest rates that range from 7.50% to 12%. This means that LendingHome has one of the lowest rates on our list of top hard money lenders, competitive with the rates offered by RCN Capital. However, LendingHome says that it’s common to receive an interest rate between 9% and 12%.

LendingHome rates and fees are:

• Rates: 7.5% to 12%
• Application fee: None
• Lender fees (points): 1.5% to 2.5%
• Closing costs: As low as $499; no hidden or junk fees

LendingHome Terms

LendingHome’s hard money loans have a typical loan term of 12 months and require the loan balance to be paid in full at the end of the term. However, LendingHome doesn’t have any penalties for early repayment. This makes LendingHome the shortest lender when it comes to the life of its hard money loans.

LendingHome terms include:

• Maximum loan amount: $1 million per deal, $5 million across multiple deals
• LTC and ARV: 90% LTC, 75% ARV
• Average loan term: 12 months
• Prepayment penalty: None
• Time to approval and funding: Can be as few as five days

LendingHome Qualifications

Hard money lenders, including LendingHome, focus on the property more than the borrower. They look at property condition, expected rehab costs, expected ARV, and the neighborhood. They have a minimum FICO score and finance investors of every level, from first-time flippers to the most experienced professionals.

Their qualifications include:

• Credit score: Credit score of 620 or greater (check yours free here)
• Bank statements: Zero to three months
• Real estate experience: None, all levels accepted
• Down payment: 10% or higher

LendingHome analyzes each market on its own for hard money loans. This means your pricing and terms are influenced by your asset and your local market. In addition, your rate will be based on your experience as an investor. The more experience you have, the better chance of a lower rate.

LendingHome Application Process

LendingHome has a three-minute hard money loan application process. At the end of the application, you will know your rate. This helps you, as an investor, quickly know if you prequalify, what documents you will need, and how much to budget for closing costs and monthly payments.

LendingHome’s application process includes:

• Find your rate and prequalify in three minutes
• Complete an easy online application with no fees
• Upload required documents

LendingHome Customer Service

LendingHome offers a dedicated customer service team and a representative assigned to your loan. Through phone, text, and email, this person will guide you through LendingHome’s loan application process, help you prepare the necessary documents, and receive the funds once you’re approved. You will have a customized dashboard that updates you on your loan every step of the way.

What LendingHome Is Missing

LendingHome offers competitive rates and flexible products for residential investors wanting to secure short-term funds within a few days. However, they do not finance commercial property or offer long-term financing like some of the others on our list. If you’re looking for permanent loans or commercial financing, try one of the other hard money loan providers on our list.

LendingHome Reviews

LendingHome is known for fair rates and quick processes compared to other hard money lenders. Borrowers say they like LendingHome’s easy-to-use online portal, which lets you know exactly what needs to be submitted, and where questions are answered promptly. If you want more details about LendingHome, check out our review page.

How to Apply With LendingHome

Applying for a loan with LendingHome is easy. Visit their website and fill out their three-minute prequalification application; you will know your rate and approval conditions in minutes, and you will get your money in days—not months—so you can compete with cash buyers.

Visit LendingHome

Visio Lending: Best Hard Money Lender for Refinancing or Seasoning Investment Properties

Visio Lending offers bridge loans for rent-ready properties and permanent investment property loans for long-term buy-and-hold investors. They offer a wide range of loans with a minimum loan of $45,000 and a maximum loan of $2 million. They’re best for landlords looking to grow their rental portfolio with long-term rates starting at 5.2%.

Visio Lending Rates, Terms & Qualifications

Visio Lending offers short-term, permanent, and transitional hard money loans for experienced investors with the lowest interest rates compared to the other lenders. Visio Lending’s focus is providing long-term loans for rent-ready properties. They also offer bridge loans and cash-out refinance options, giving investors a fast way to tap into equity to renovate or purchase new investments.

Visio Lending Rates

Visio Lending offers the lowest rates in our research with their short-term bridge loans and permanent hard money loans. Interest rates start at 5.2% for long-term loans (buy-downs available to 4.3%), and 5.55% for short-term loans. Rates are calculated based on your middle credit score, LTV, and debt service coverage ratio (DSCR).

Visio Lending rates and fees are:

• Rates: Starting at 5.2% for long-term loans and 5.55% for their bridge loan
• Lender fees (points): 0% to 5% (standard is 2%)
• Closing costs: $1,645 plus $750 per property
• Appraisal fee: $300 to $500 and higher

Visio Lending Terms

Visio Lending offers three types of loans, including single-rental loans, blanket loans for multiple properties, and bridge loans. Their long-term products are perfect for investors wanting to build wealth, and their bridge loans are good for investors needing to use equity to purchase or renovate properties quickly. They also offer portfolio lending for vacation and short-term rental properties.

Visio Lending terms include:

• Maximum loan size: $2 million, 80% LTV
• Minimum property value: $75,000 for single, $80,000 for rental portfolio
• Average loan term: Five years
• Prepayment penalty: Yes, on long-term loans

Visio Lending can help you refinance a short-term hard money loan into a stable long-term investment loan, stabilizing your rate and payments. This is great for both long-term investors and fix and flippers who want the flexibility to change their strategy, if necessary.

Visio Lending Qualifications

Visio Lending, like the other hard money lenders, has two general stages: the prequalification stage and the funding stage. Funding is generally within 21 business days. Since Visio Lending lends on LTV and not after-repair value (ARV), they will verify your prior real estate experience, but they focus more on your FICO score and the property.

Their qualifications include:

• Credit score: 660 or greater (check yours free here)
• Bank statements: Two months
• Real estate experience: List of past projects
• Down payment: 20% or higher

Visio Lending Application Process

The application process at Visio Lending begins with filling out a simple online contact form. A representative will contact you promptly to discuss your transaction. They don’t require personal tax returns but will require your property to be rent stable with executed leases and no deferred maintenance. They will want a copy of your executed leases.

Visio Lending Customer Service

Visio Lending is a national hard money lender with a dedicated customer support system like the other best hard money lenders on our list. In terms of reputability, they have funded thousands of loans and they have purchased, sold, or financed over $275 million in residential real estate. They were founded in 2011 and have an A+ rating with the Better Business Bureau.

What Visio Lending Is Missing

Visio Lending is best for landlords wanting to refinance or grow their rental portfolio. They do not finance properties with more than four units, commercial properties, or fix-and-flip loans. It is best to look at our other best hard money lenders for those types of investment properties.

Visio Lending Reviews

Visio Lending is a great lender for buy-and-hold investors, offering flexible, long-term loans. Customers especially liked the personal attention and detail their loan officer gave to them. They also reported that projects funded quickly and the process went smoothly even when funding multiple loans simultaneously. Check out our review page for more about Visio Lending.

How to Apply With Visio Lending

You can apply for a hard money loan with Visio Lending by visiting their website and filling out a quick online form. Once submitted, a representative will contact you for more information.

Visit Visio Lending

RCN Capital: Best Hard Money Lender for Customer Service

RCN Capital prides itself on their top-notch customer service. They offer short-term bridge loans, after-repair value (ARV) loans, a buy-to-rent program, and long-term rental loans. They match LendingHome with a competitive leverage at 90% loan-to-cost (LTC) and 100% of rehab. Short-term rates start at 7.99%, flexible terms, and a minimum credit score of 600. They offer an easy online application with a commitment letter within 24 to 48 hours.

RCN Capital Rates, Terms & Qualifications

RCN Capital offers short-term loans starting at 7.99%. Their short-term loans range from 12 to 24 months with an optional six-month extension on their Buy-to-Rent program. They charge between 3% and 5% and have a minimum required credit score of 600, one of the lowest on our list.

RCN Capital Rates

RCN Capital issues hard money loans with interest rates that range from 5.5% to 7.99% and up. This means that RCN Capital competes with the other hard money lenders on our list, like the rates offered by Visio Lending.

RCN Capital’s rates and fees are:

• Rates: 5.5% to 7.99% and higher
• Lender fees (points): 3% to 5%
• Closing costs: 2% to 5%

RCN Capital Terms

RCN Capital hard money loans have a typical loan term of 12 to 18 months and require the loan balance to be paid in full at the end of the term. Their Buy-to-Rent program has a two-year term and allows a six-month extension. There are no prepayment penalties on their fix-and-flip loan program.

RCN Capital terms include:

• Maximum loan amount: $2.5 million, 90% LTC, 100% of rehab costs
• Long-term rental program: Up to $5 million
• Average loan term: 12 to 18 months; 30 years on long-term program
• Prepayment penalty: None on their ARV loan program (termination fee of 1% after 9 months)
• Time to approval and funding: Commitment letter in 24 to 48 hours; closing can be as little as 10 days

RCN Capital Qualifications

With all loans at RCN Capital, the borrower’s credit score is taken into consideration. RCN Capital’s bridge loans and After-Repair Value loan program have a minimum credit requirement of 600. Their Buy-to-Rent loan program has a minimum credit score of 660. The Long-term Rental loan program has a minimum score of 620.

RCN Capital’s qualifications include:

• Credit score: Minimum credit score 600 (check yours free here)
• Documentation required: Copies of bank statements and proof of funds
• Experience: Prior experience preferred
• Down payment: 10% or higher

RCN Capital Application Process

RCN Capital has a streamlined approval process allowing the company to issue commitment letters in as little as 48 hours. This process requires borrowers to provide a signed application and a form giving RCN the authority to run a credit report and a background check. A loan officer reviews the documents, discusses the scenario with the borrower, and issues a commitment letter the same day.

RCN Capital’s application process includes:

• Signed application
• Credit report and background check
• Discussion with loan officer

RCN Capital Customer Service

RCN Capital is dedicated to providing quick responses to time-sensitive loans, with the ability to close in as few as 10 business days. Borrowers work with the same loan officer from application through closing. Underwriting and all approvals are done in-house, giving RCN Capital a local bank flavor though they lend in 44 states.

What RCN Capital Is Missing

RCN Capital offers short- and long-term hard money loans for residential one-to-four units, condos, townhomes, apartments with five or more units, and mixed-use properties. They have competitive rates starting at 7.99% and borrowers can get a commitment letter in as few as 48 hours. What RCN doesn’t offer is commercial loans. If you’re looking for a commercial loan, consider one of the other lenders.

RCN Capital Reviews

With RCN’s commitment to outstanding customer service, we were able to find many great reviews. Clients are saying they loved the fast turnaround time to closing and raved about their experiences in working with the same loan officer from the application process through closing the loan. If you want to learn more about RCN Capital, check out our review.

How to Apply With RCN Capital

You can apply for a hard money loan with RCN Capital by filling out a quick form on their website. RCN requires basic documentation for underwriting, and they approve both the borrower and the property. This includes filling out an application, giving authorization to run a credit report and background check, proof of funds, an appraisal, copies of existing leases, renovation estimates, and documentation of the business entity.

Visit RCN Capital

Patch of Land: Good Option for Both Residential & Commercial Hard Money Loans

Patch of Land is an alternative to LendingHome’s residential hard money loans, offering commercial hard money loans as well. They could be a perfect fit if you want to buy one commercial property and one residential property, since you can use the same lender for both. However, their fees are slightly higher than LendingHome and Visio Lending.

Patch of Land Rates, Terms & Qualifications

Patch of Land offers short-term hard money loans with interest rates starting at 5.99%. Their loan duration ranges from 12 to 24 months for short-term financing with an optional one-year extension, to 30 years on their 5/1 ARM and 10/1 ARM interest-only loans. Like LendingHome, Patch of Land offers interest-only monthly payments, paying in full at the end of the term.

Patch of Land Rates

Patch of Land offers residential and commercial hard money loans with rates starting at 5.99%. Points are determined by the loan parameters, the size of the loan, investor experience, LTV, and ARV.

Patch of Land rates and fees are:

• Rates: 5.99% to 9.25%
• Lender fees (points): 3% to 5%
• Closing costs: 2% to 5%
• Appraisal fee: $300 to $500

Patch of Land Terms

Patch of Land offers hard money loans with loan terms from one to two years, with an optional one-year extension, and no prepayment penalty on short-term loans. This gives residential investors, as well as commercial investors, the opportunity to spend up to three years purchasing and renovating a property before finding tenants and refinancing with a conventional mortgage.

Patch of Land’s terms include:

• Maximum borrowing amount: $5 million or greater, 85% LTV
• Average loan term: 12 to 24 months, with optional one-year extension
• Prepayment penalty: None on fix and flip
• Time to approval and funding: As little as seven days

Patch of Land Qualifications

Patch of Land performs its loan approval process into two stages. However, unlike LendingHome, Patch of Land requires all borrower documents to be submitted during prequalification. This hard money lender conducts an independent background check of the borrower, reviews all documents, and contacts the borrower regarding final appraisal, loan terms, and funding.

Their qualifications include:

• Credit score: 600 (check yours free here)
• Bank statements: Two to three months
• Real estate experience: List of past projects or scope of work and contractor bid
• Down payment: Typically 20%

Patch of Land Application Process

Patch of Land requires all the borrower’s documents to be submitted upfront during the prequalification process. The hard money lender then conducts an independent background check of the borrower, reviews all documents, and calls the borrower regarding loan terms, appraisal, and funding.

Documents you will need for Patch of Land:

• Proof of funds (down payment and closing costs)
• Inspection report, if available
• Property comparisons
• Purchase contract
• Experience list
• Construction estimates, time frame, and contractor information
• Lender-ordered appraisal

Patch of Land Customer Service

Patch of Land has a dedicated team of customer service associates. These associates help you through the loan application process. Once you apply for prequalification, the lender assesses your qualifications, which is then followed by a call from an associate to guide you through the rest of the loan process.

What Patch of Land Is Missing

From our review, Patch of Land provides the fastest funding time of all our lenders and offers both commercial and residential loans. However, they do require more upfront documentation compared to the other lenders. They also have higher down payment requirements compared to LendingHome, as well as higher fees.

Patch of Land Reviews

Patch of Land prides itself on being simple, fast, and easy. Reviews of Patch of Land varied, with an uptick in more recent negative reviews. Overall, reviews showed that experienced investors rated Patch of Land higher than novice investors. If you want more details on Patch of Land, check out our review page.

How to Apply With Patch of Land

You can apply for a loan with Patch of Land on their site by filling out a quick online application. After you apply online, a loan representative will call you after reviewing your initial prequalification application.

Visit Patch of Land

CoreVest: Best Hard Money Lender for Larger Projects

CoreVest Finance offers a variety of short-term fix-and-flip loans and long-term rental property loans. They’re a great alternative to LendingHome; like other lenders, they have multiple loan products, including bridge loans, fix-and-flip credit lines, and 30-year permanent mortgages. They can lend up to $100 million for large projects and fund projects for foreign nationals.

CoreVest Rates, Terms & Qualifications

CoreVest offers hard money fix-and-flip loans with terms from one to two years, with no prepayment penalty. Fix-and-flip loans come in the form of a credit line or a bridge loan. They also offer a permanent rental mortgage with a term of 30 years, as well as portfolio loans with five-, seven- and 10-year terms.

CoreVest Rates

CoreVest offers competitive rates on their short-term and long-term loan products. Their starting rates are lower than those offered by LendingHome, but their lender fees are higher. However, unlike LendingHome, their appraisal fees are not included and need to be paid out of pocket by the borrower.

CoreVest rates and fees are:

• Interest rate: 6% to 9.95% fixed and floating available, depending on the product
• Lender fees (points): 2% or greater
• Closing costs: 2% to 5%
• Appraisal fee: $300 to $500

CoreVest Terms

CoreVest offers several loans, including credit lines, bridge loans, portfolio loans, and single-asset permanent loans, and they all have different terms. The terms offered for their credit lines and bridge loans are 18 to 24 months. The portfolio loans have five-, seven-, and 10-year terms, and the single-rental loans have 30-year terms.

CoreVest terms include:

• Maximum borrowing amount: $100 million, 75% to 80% LTV or LTC (loan-to-cost)
• Average loan term: One to 30 years
• Prepayment penalty: None
• Time to approval and funding: Can be as little as 15 days

CoreVest Qualifications

CoreVest, like the other hard money lenders, has a two-step approval process for borrowers. They want to see your previous real estate experience and prefer borrowers with fix-and-flip experience for their short-term loans. They do have a minimum FICO score, which is equal to LendingHome’s, but they underwrite based on the deal overall.

Their qualifications include:

• Credit score: 620 or greater (check yours free here)
• Bank statements: Two months
• Real estate experience: List of two or more past projects or scope of work with contractor bid
• Down payment: 20% or higher

CoreVest offers hard money fix-and-flip loans with terms from one to two years. These fix-and-flip loans come in the form of a credit line or a bridge loan. They also have permanent rental mortgages with 30-year terms, as well as portfolio loans with five- or 10-year terms. The maximum borrowing amount is up to $100 million.

CoreVest Application Process

CoreVest starts the application process with an online form; a relationship manager will respond within two to seven business days with a term sheet. Depending on the hard money loan product you choose, they can typically close in three to six weeks. Have your experience list and property information, including funding needs and terms, ready for your call.

CoreVest Customer Service

CoreVest is a national hard money lender that has closed over $4 billion in loans in 40 states. CoreVest was founded in 2014 and has since closed over 29,000 loans. Their goal is to bring affordable, useful products and services to real estate investors. They have a team of dedicated relationship managers who can help you with most of your needs.

What CoreVest Is Missing

CoreVest is a great hard money lender for large deals, offering many options. They offer commercial and owner-occupied loans. If you want to buy an office building or another type of commercial property, it’s best to go with Patch of Land or Finance of America Commercial; if you are an owner occupant, go with Delancey Street.

CoreVest Reviews

CoreVest provides prides itself in providing experienced professionals, competitive rates, and loans up to $250 million with no hassle and no hidden fees. If you want details about CoreVest, check out our review page.

How to Apply With CoreVest

If you are looking for a hard money lender for large projects, CoreVest is a good option. It’s easy to apply for a loan; visit CoreVest, fill out the online form, and they will call you back within 24 hours to personally discuss your goals.

Visit CoreVest

Lima One Capital: Another Good Residential Fix-&-Flip Loan Option

Lima One Capital finances both short-term and permanent residential real estate. They offer short-term fix-and-flip loans for single-family homes, multi-unit properties, and condos. They offer 30-year mortgage terms for rentals, like what Visio Lending and Finance of America Commercial offer. Lima One Capital is a great alternative to permanent loans offered by Visio Lending.

Lima One Capital Rates, Terms & Qualifications

Lima One Capital offers hard money fix-and-flip loans with a 13-month term and no prepayment penalty on short-term loans. They offer fix-and-flip loans for rehabs, cash-out refinances, construction loans, and more. The hard money lender also has permanent rental mortgages with terms of 30 years. Interest rates can be fixed or variable.

Lima One Capital Rates

Lima One Capital offers residential fix-and-flip and permanent loans with comparative fees to LendingHome (1% to 3%). Lima One Capital charges points based on the size of the loan and overall deal. The hard money lender has a minimum floor of $50,000 for its loans.

Lima One Capital rates and fees are:

• Rates: As low as 5.5% for long-term rental mortgages to 11.5% for short-term loans
• Lender fees (points): 1% to 3%
• Closing costs: 2% to 5%
• Appraisal fee: $300 to $500 and higher

Lima One Capital Terms

Lima One Capital offers a variety of loan options for experienced investors. In addition to hard money loans, they offer rental loans, portfolio loans, multifamily loans, and refinancing. Since they offer so many different loans, their terms vary from one year all the way up to 30 years.

Lima One Capital terms include:

• Maximum borrowing amount: No maximum dollar specified for fix-and-flip loans; 90% LTV, 70% ARV
• Average loan term: 13 months to 30 years
• Prepayment penalty: None on short-term loans
• Time to approval and funding: As little as 15 days

Lima One Capital Qualifications

Like the other lenders on our list, Lima One Capital breaks its hard money and permanent loan approval process into two steps: prequalification and funding. With prequalification, the same or similar preliminary documents are required as with the other lenders. This helps the lender give a borrower a loan estimate based on qualifications, deal structure, and exit strategy.

Their qualifications include:

• Bank statements: Two months
• Real estate experience: List of past projects or scope of work with contractor bid
• Down payment: 10% or higher
• Credit score: 600 for fix and flip, 660 for long-term rental loans (check yours free here)

Lima One Capital Application Process

To apply with Lima One Capital, fill out their online application. You will be guided through a step-by-step process. As with many hard money lenders, you will be required to fill out a contact sheet with your information. A Lima One Capital representative will reach out to discuss your transaction, and you will be given a list of required documents to pull together your loan estimate.

Lima One Capital Customer Service

Lima One Capital is a national hard money lender. They have more than 60 employees who offer dedicated customer service and support for all their loans. Like the other lenders on our list, Lima One Capital is a full-service lender that helps borrowers throughout the lending process.

What Lima One Capital Is Missing

Like Lending Home and Visio Lending, Lima One Capital doesn’t fund hard money loans for commercial real estate investors. They’re not right for investors who want to purchase hotels, office buildings, or other commercial properties. They will lend on residential multifamily properties with five or more units.

Lima One Capital Reviews

Lima One Capital has mixed reviews online but overall, they have ranked 4.5 out of 5 stars on average. Customers reported Lima One as having outstanding loan service, low rates, great customer service, and fast closings. If you’d like to read more reviews about Lima One, check out our Lima One review page.

How to Apply With Lima One Capital

You can apply for a hard money loan on Lima One Capital’s website. Their online application is easy, and you can expect an immediate response.

Visit Lima One Capital

Finance of America Commercial: Great Commercial Hard Money Lender

Finance of America Commercial offers both short-term and permanent loans ranging from one to 30 years. They lend up to 75% LTV with a maximum loan exposure of $10 million, with rates from 5.5% to 9%. Their minimum and maximum loan amounts depend on the type of loan and the type of project, as well as the borrower’s qualifications.

Finance of America Commercial Rates, Terms & Qualifications

Finance of America Commercial offers both short-term and permanent loans ranging from one to 30 years. They lend up to 75% LTV with a maximum loan amount of $10 million. However, their minimum and maximum loan amounts depend on the type of loan and the type of project, as well as the borrower’s qualifications.

Finance of America Commercial Rates

Finance of America Commercial offers low starting rates at 5.5%, but their average rates are around 6.75% and up. They do offer conventional mortgages with lower rates, but these aren’t hard money loans and aren’t being considered. Finance of America Commercial rates depend on the type of project you’re financing, your commercial real estate experience, and in some cases, your FICO score.

Finance of America Commercial rates and fees are:

• Rates: 5.5% to 9% and higher
• Lender fees (points): 1% to 5%
• Closing costs: 2% to 5%

Finance of America Commercial Terms

Like Visio Lending, Finance of America Commercial offers different loans, including bridge loans, non-recourse commercial loans, and construction loans for commercial properties. These loans have varying terms from one to 30 years. Just like the other lenders on the list, Finance of America Commercial doesn’t generally charge a prepayment penalty.

Finance of America Commercial terms include:

• Maximum funding amount: $10 million and higher, 80% LTV, 75% ARV
• Average loan term: One to 30 years
• Prepayment penalty: None
• Time to approval and funding: Up to 30 days

Finance of America Commercial Qualifications

Finance of America Commercial also has two steps to its loan process. The first is the prequalification and the second is the funding process. However, since Finance of America Commercial is a commercial hard money lender, their loans are often larger and generally require more due diligence, increasing funding time to 30 days.

Qualifications include:

• Credit score: No minimum FICO score, but experience and property are examined
• Bank statements: Two months
• Real estate experience: No experience required for a single loan; at least two completed projects for a line of credit
• Down payment: 10% or higher

Because Finance of America Commercial is a commercial hard money lender and their loans are often larger and generally require more due diligence, expect an increase in time to get funded. It usually takes 30 days to close on a commercial loan with Finance of America Commercial.

Finance of America Commercial Application Process

Finance of America Commercial starts their application process with a phone conversation rather than an online application. Go to their website, fill out the contact form, and a representative will call you to discuss your goals. Once the representative understands your project goals and you decide on a product, they will walk you through the documentation process.

Finance of America Commercial Customer Service

Finance of America Commercial has a customer support team that is dedicated and knowledgeable. They are a national commercial hard money lender that was established in 2017. Since then, they’ve closed over 2,000 loans.

What Finance of America Commercial Is Missing

The company isn’t as well-known as LendingHome or Lima One Capital, and they don’t fund loans as fast as the other best hard money lenders we reviewed. Their focus is commercial loans, but they do have a separate residential division as well. If you’re looking for a quick residential fix-and-flip loan, then we recommend our best hard money lender, LendingHome.

Finance of America Commercial Reviews

Finance of America Commercial caters to real estate investors, offering fix-and-flip and rental property loans. Customer reviews show that Finance of America has knowledgeable and friendly staff who are willing to help customers through education. They value putting the power back into the customer’s hand, providing resources, services, and high-tech lending.

If you want more information on Finance of America, check out our review page.

How to Apply With Finance of America Commercial

If you are looking for a commercial hard money lender, you can easily apply for a loan with Finance of America Commercial by filling out their online form and then waiting for a customer service agent to call you back.

Visit Finance of America Commercial

Delancey Street: Best Hard Money Lender for Startup Developers

Delancey Street offers loans to real estate investors, entrepreneurs, and businesses of all sizes. Delancey Street offers a range of products, and you can borrow up to $8 million. They’re best if you are looking for fast cash for a complex deal, a quick decision turnaround, and terms from six to 48 months for residential or commercial real estate loans.

Delancey Street Rates, Terms & Qualifications

Delancey Street offers hard money fix-and-flip loans with terms from six to 48 months, with no prepayment penalties. These fix-and-flip loans can come in the form of a rehab loan, cash-out refinance, construction loan, and more.

Delancey Street Rates

Delancey Street offers fix-and-flip, residential, and commercial loans. They do not charge an application fee and have an online application to help determine rates fast.

Delancey Street rates and fees are:

• Rates: 7.99% to 12%
• Lender fees (points): 1.5% to 3.5%
• Closing costs: 2% to 5%
• Appraisal fee: $300 to $500

Delancey Street Terms

Delancey Street has multiple products to choose from, including hard money, startup money, and more. Their hard money loans offer high LTVs and no limits.

Delancey Street terms include:

• Maximum borrowing amount: No maximum dollar specified, 80% to 90% LTV
• Average loan term: One to 30 years
• Prepayment penalty: None
• Time to approval and funding: Up to 30 days

Delancey Street Qualifications

Like the other hard money lenders on our list, Delancey Street will look at the overall deal. They do not require a specific credit score but cater to experienced real estate investors.

Their qualifications include:

• Bank statements: Two months
• Real estate experience: List of past projects or scope of work with contractor bid
• Down payment: 20% to 30% or higher
• Credit score: No required minimum (check yours free here)

Delancey Street Application Process

Delancey Street starts with an online application. They will review collateral, your experience, and the viability of the project. If you’re a fit, they will request the supporting documentation and offer you a term sheet. There is no application fee.

Information you’ll need for the application:

• Your name, email, and phone number
• Property address
• Loan amount
• Loan duration needed
• Estimated property value and appraisal
• Existing liens
• Address and property type

Delancey Street Customer Service

Delancey Street is a nationwide lender that specializes in complex transactions. They offer online applications, email, and telephone customer service, and each loan has a dedicated representative.

What Delancey Street Is Missing

Delancey Street is one of the most diverse lenders on the list, offering hard money loans, small business loans, merchant cash advances, venture capital, and factoring loans. However, they do not offer long-term financing. Look at Visio Lending if you need a long-term loan.

Delancey Street Reviews

Delancey Street prides itself in helping business owners who have trouble with traditional lenders. Reviewers reported that they appreciated Delancey Street’s creative approach to financing and that the company didn’t use traditional metrics such as credit scores when determining loan eligibility, and instead looked at the creativity of the project.

How to Apply With Delancey Street

You can apply for a loan with Delancey Street by filling out their online form, after which a customer service agent will call you to discuss your project.

Visit Delancey Street

Local Hard Money Lenders

There are more than 600 hard money lenders. Not all hard money lenders are national institutions and even when they are, they generally have local branches that understand the local market. Use our hard money lender directory to find the right lender for your real estate investment lending needs.

Bottom Line

We compared the eight best hard money lenders based on their rates, terms, qualifications, customer service, and funding time. After comparing, we recommend LendingHome as our best hard money lender for fix and flippers. Each lender has their own best features and suitability for investors.

Our best hard money lender for residential real estate is LendingHome due to its comparative lower interest rates and fees and comparatively higher ARV and LTV ratios. Online prequalification takes just minutes.

Visit LendingHome