Choosing the right hard money lender for your investment project can be challenging. With nearly three decades of experience in real estate and investing, I’ve worked with hard money lenders to secure financing for everything from simple fix-and-flip projects to multi-million-dollar apartment building rehabs.
There’s no one-size-fits-all hard money lender—each borrower, project and situation is unique. The best hard money loans for real estate depend on your investment strategy, whether you’re financing a short-term flip, a rental property or a large-scale development.
I’ll walk you through my top picks for the best hard money lenders in 2025 and explain how to choose the right lender for your specific needs. You’ll also learn how hard money loans work, what it takes to get approved and key factors to consider before applying.
Kiavi: Best for fix and flips
If you’re looking for a one-stop shop when it comes to hard money lenders, your best bet is Kiavi. Kiavi is known for its convenient combination of reasonable rates, an easy-to-use digital platform and knowledgeable customer service representatives. For fix and flips, there’s only a seven-day cash-to-close turnaround, so you can jump right into investing.
The proof is in the pudding. Kiavi recently announced an expansion to 13 more states, increasing their loan volume by 46%, in turn creating more reliable capital for realtors. According to Kiavi, this success is due in part to a “consistent track record of performance and risk-adjusted terms.”
Klavi rates and terms |
|
|---|---|
| Interest rate | Fix and Flip (short term): 7.45%+ APR |
| Loan-to-value | Up to 80% APV (after repair value), 95% of purchase price, 100% rehab cost |
| Upfront fees | 2%-3% origination fee |
| Credit requirement | 640 |
| Investing experience | Qualifications based on the ARV and potential profit of the property itself. |
| Maximum loan amount | $3 million |
| Prepayment penalty | YES |
| Property types | Fix and flips, 2-4 unit rentals, detached and attached planned unit developments (PUD’s) |
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Easy Street Capital: Best for investment properties
Investment properties have been crucial to expanding my portfolio. But when it comes to hard money loans in this department, it can be hard to find a process that’s flexible, fast and most importantly — reliable.
Easy Street Capital is a trusted company that stands out in 2025 due to its quick approval process. A loan can be approved in as little as 24 hours and can close in as little as 48 hours. Time really is money when it comes to these things.
Easy Street Capital rates and terms |
|
|---|---|
| Interest rate | 7.45%+ APR |
| Loan-to-value | 90% of the purchase price and up to 100% of for renovation costs |
| Upfront fees | Vary – contact an Easy Street representative |
| Credit requirement | 600 Minimum Credit Score |
| Investing experience | None required |
| Maximum loan amount | $2 Million |
| Prepayment penalty | NO |
| Property types | Commercial, single-family, multifamily, land, mixed-use; no owner occupied. |
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Constitution Lending: Best for new investors
If you’re a new investor, finding the best hard money lenders for beginners can make or break your chance at success. You want someone who’s experienced with emerging investors and with terms that are fair and comprehensible. Constitution Lending prides itself on helping investors kick off their projects. They’re well-versed in the challenges of navigating hard money loans for the first time.
Although they’re great with new lenders, they will have some base-level requirements. As usual, a good credit score can’t hurt, but it isn’t all or nothing. Prepare a solid business plan and make sure you are well-versed on your property before applying.
Constitution Lending rates and terms |
|
|---|---|
| Interest rate | 9.5 – 12% |
| Loan-to-value | Up to 75% for purchase loans, up to 90% for renovation financing |
| Upfront fees | 2-4% of loan amount |
| Credit requirement | 600 Minimum Credit Score |
| Investing experience | None required, but a strong business plan can help odds of approval. |
| Maximum loan amount | $2 Million |
| Prepayment penalty | NO |
| Property types | Commercial, single-family, multifamily, fix and flips |
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New Silver: Best for low interest rates
If you’re looking to lower the amount of financial risk on a loan, New Silver is a great option. Not only do they work with investors of various experience levels, but they offer highly competitive rates and flexible terms.
When it comes to rentals, New Silver has some of the lowest interest rates in the biz. If you have a decent credit score and over a year of experience in investing, I would definitely recommend contacting them.
New Silver rates and terms |
|
|---|---|
| Interest rate | 6.125% + APR for rentals, 9.5%+ for fix-and-flips |
| Loan-to-value | 90% for fix-and-flips, 80% for rental properties |
| Upfront fees | 2-5% of loan amount |
| Credit requirement | 650 Minimum Credit Score |
| Investing experience | 1 year of experience |
| Maximum loan amount | $5 million |
| Prepayment penalty | NO |
| Interest rate | Single-family, multifamily, mixed-use, short-term |
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Residential Captial Partners: Best for no down payment
Resident Capital Partners is another company that works well with any experience level and offers a fairly quick and flexible process. But what really makes them stand out is the option to finance up to 85% of the property value with no down payment. This makes it easier for you to preserve your cash flow for other expenses. Interest rates are adjustable based on a combination of the borrower’s profile and the property’s potential.
Residential Captial Partners rates and terms |
|
|---|---|
| Interest rate | 8.5% + APR |
| Loan-to-value | Up to 85% |
| Upfront fees | 2-4% of loan amount |
| Credit requirement | 620 Minimum FICO |
| Investing experience | 1+ years |
| Maximum loan amount | $5 Million |
| Prepayment penalty | NO |
| Property types | Mixed-use, single-family, multifamily |
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What is a hard money loan?
A hard money loan is a type of short-term property financing provided by hard money lenders—typically private investors or companies. Unlike traditional mortgage loans, which have repayment periods of 15 to 30 years, hard money loans typically range from one to three years.
While hard money loans tend to have higher interest rates and fees than conventional mortgages, they offer significant advantages, including faster approval times and more flexible qualification criteria. Hard money lenders take on more risk, but they benefit from higher returns.
How do hard money loans work?
Hard money loans are asset-based, meaning hard money lenders primarily consider the value of the property being purchased rather than the borrower’s credit score. While a borrower’s financial history and experience still matter, the collateral (the property) plays the most significant role in securing the loan.
Since hard money lenders focus on tangible assets, they are not bound by the same strict regulations as banks and traditional lenders, allowing for faster and more flexible loan approvals
Common uses for hard money loans
Hard money lenders provide short-term hard money loans for various real estate investment strategies, including:
- Fix-and-flip projects: Investors use hard money loans to purchase, renovate, and quickly sell properties for a profit.
- Buy-Rehab-Rent-Refinance (BRRR) method: Investors use hard money loans to acquire and renovate rental properties before refinancing with a long-term mortgage.
- Foreclosure prevention: Homeowners facing foreclosure may use hard money loans to quickly secure funds and avoid losing their property.
- Bridge financing: Investors and businesses use hard money loans to bridge the gap between selling an old property and purchasing a new one.
Since hard money lenders are not bound by conventional mortgage rules, they can offer unique loan structures like no-income verification loans and interest-only payment options.
How to choose the right hard money lender
Selecting the right hard money lender is crucial for securing favorable loan terms. Here are five key factors to consider:
- Type of real estate project: Not all hard money lenders finance the same types of properties. Some specialize in fix and flip deals, while others focus on rental or commercial properties. Ensure the lender supports your investment strategy.
- Interest rates: Unlike traditional banks, hard money lenders set their own interest rates. Rates vary depending on the lender, property type and borrower’s risk profile. Comparing multiple lenders can help you secure the best deal.
- Loan-to-value (LTV) ratio: LTV ratios determine how much of a property’s value a lender is willing to finance. Most hard money lenders offer LTVs between 65% and 75% of the property’s value.
- Upfront fees: Hard money lenders charge fees ranging from 1% to 5% of the loan amount, often labeled as origination fees or points. Make sure to review all fees before committing to a lender.
- Borrower requirements: Some hard money lenders require a strong credit history and previous investment experience, while others are more flexible. Check the lender’s borrower qualifications to ensure you meet their requirements.
Best hard money lenders FAQs
How do you get approved for a hard money loan?
To secure a hard money loan for real estate, borrowers should be prepared to meet these key criteria:
- Down payment: Most hard money lenders require 20-30% down, though some may offer low down payment options.
- Collateral: The property itself serves as collateral, though some lenders accept additional assets as security.
- Credit score: While not the primary factor, borrowers with lower credit scores may need to provide a larger down payment or additional collateral.
- Income verification: Some hard money lenders require proof of income, while others offer no-income verification loans.
- Rental income consideration: If the property is an investment rental, some lenders may factor in its rental income when approving the loan.
What costs are associated with hard money loans?
Borrowers should expect to pay various fees, including:
- Origination fees (1%-5%)
- Underwriting and closing fees
- Extension fees (if additional time is needed to repay the loan)
- Prepayment penalties (in some cases)
Do hard money lenders cover renovation costs?
Yes, many hard money lenders provide funding for both property acquisition and renovation costs. Lenders typically finance up to 75% of the property’s After Repair Value (ARV).
How fast can you get a hard money loan?
Hard money loans are known for their quick approval process. While some lenders claim they can close in as little as five days, most transactions take about two weeks due to necessary title searches and documentation.
Do hard money lenders require appraisals?
While not all hard money lenders require traditional appraisals, they will assess the property’s value through their own evaluation methods.
Do hard money lenders check credit?
Not all hard money lenders require a hard credit inquiry. Some only perform a soft credit check, which does not impact your credit score. If credit is a concern, providing additional collateral or a larger down payment can improve your chances of loan approval.
The full picture: What to do next
Hard money lenders play a crucial role in real estate investing by offering quick and flexible financing options. While hard money loans come with higher costs than traditional mortgages, they provide significant advantages for investors needing fast capital.
To ensure success, do your research, compare multiple hard money lenders, and understand the terms of the hard money loan before committing. Whether you’re a seasoned investor or just starting, partnering with the best hard money lender for you can make all the difference in achieving your real estate investment goals.
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First Time Home Buyer FAQs - Via HousingWire.com
