Hard money is real estate’s short-term, asset-based credit market: loans of 6 to 24 months secured by property, priced on the collateral and the exit rather than on the borrower’s tax returns, funded in days at rates that would be unthinkable on a 30-year mortgage. It exists because banks cannot close in ten days on a house with no kitchen, and because investors who can turn that house into a finished product in four months will pay for the speed.
The guides here are the playbook: what a hard money loan is, what it costs, how fix-and-flip loans and bridge loans are structured, how to refinance into a conventional or DSCR loan, how lenders evaluate after-repair value, and how to find and vet a lender without paying an advance fee to a website.
The state pages are the rulebook. Usury caps (Arkansas’s 17% constitutional ceiling, New York’s 16%/25% thresholds, no cap at all in a dozen states), lender licensing, how fast a lender can foreclose if a deal fails (two months in Texas, years in New Jersey), whether a deficiency can follow, and transfer taxes on the way in and out — none of it is uniform, and all of it is priced into your loan.
Start here
- Read the state page for the property’s location: usury, licensing, foreclosure speed and transfer taxes.
- Build the deal budget with a 15% rehab contingency and carrying costs for two months beyond your plan.
- Estimate ARV from sold comps yourself before any lender does; discount optimism.
- Collect two written term sheets and compare total cost of capital and cash left in the deal — not just the rate.
- Write down your plan B exit (refinance lender identified, price-cut schedule) before you sign the note.
Guides
- What is a hard money loan? Asset-based lending explained
- Hard money vs conventional loan: speed, cost, and which deal needs which
- Hard money rates, points and LTV: typical ranges and what moves them
- Fix-and-flip financing: structuring the loan around the project
- Bridge loans: buying before you sell, and other short gaps
- BRRRR: refinancing a hard money rehab into a conventional or DSCR loan
- Hard money for beginners: your first loan, step by step
- How hard money lenders evaluate ARV — and how to estimate it yourself
- Hard money exit strategies: sell, refinance, or hold — and the plan B
- Hard money default: what happens, how fast, and how to avoid it
- Private money vs hard money: individuals, funds and what each expects
- Hard money for land and commercial property: lower leverage, longer exits
- How to find and vet hard money lenders: sources, questions, red flags
Editorial reviews
- DSCR loans — editorial rating 3.4 / 5
- Hard money lenders — editorial rating 3.4 / 5
Hard money rules by state
Usury, licensing, foreclosure speed and transfer taxes for every state — full index.
- Alabama non-judicial, 1 to 3 months
- Alaska judicial or non-judicial, 3 to 5 months
- Arizona non-judicial, 3 to 5 months
- Arkansas judicial or non-judicial, 3 to 5 months
- California non-judicial, 4 to 8 months
- Colorado non-judicial, 4 to 6 months
- Connecticut judicial, 8 to 16 months
- Delaware judicial, 6 to 12 months
- Florida judicial, 6 to 14 months
- Georgia non-judicial, 1 to 2 months
- Hawaii judicial, 10 to 24 months
- Idaho non-judicial, 5 to 7 months
- Illinois judicial, 9 to 18 months
- Indiana judicial, 5 to 12 months
- Iowa judicial, 6 to 12 months
- Kansas judicial, 4 to 8 months
- Kentucky judicial, 6 to 12 months
- Louisiana judicial, 2 to 6 months
- Maine judicial, 10 to 20 months
- Maryland non-judicial, 4 to 9 months
- Massachusetts non-judicial, 6 to 12 months
- Michigan non-judicial, 2 to 3 months
- Minnesota non-judicial, 2 to 4 months
- Mississippi non-judicial, 1 to 3 months
- Missouri non-judicial, 1 to 2 months
- Montana non-judicial, 4 to 6 months
- Nebraska judicial or non-judicial, 3 to 5 months
- Nevada non-judicial, 4 to 7 months
- New Hampshire non-judicial, 2 to 4 months
- New Jersey judicial, 12 to 36 months
- New Mexico judicial, 6 to 12 months
- New York judicial, 18 to 48 months
- North Carolina non-judicial, 3 to 6 months
- North Dakota judicial, 4 to 8 months
- Ohio judicial, 6 to 12 months
- Oklahoma judicial or non-judicial, 4 to 8 months
- Oregon non-judicial, 5 to 9 months
- Pennsylvania judicial, 6 to 14 months
- Rhode Island non-judicial, 3 to 6 months
- South Carolina judicial, 6 to 10 months
- South Dakota judicial or non-judicial, 3 to 7 months
- Tennessee non-judicial, 1 to 2 months
- Texas non-judicial, 2 to 3 months
- Utah non-judicial, 4 to 6 months
- Vermont judicial, 10 to 18 months
- Virginia non-judicial, 2 to 4 months
- Washington non-judicial, 5 to 9 months
- West Virginia non-judicial, 1 to 3 months
- Wisconsin judicial, 8 to 14 months
- Wyoming non-judicial, 2 to 3 months
Frequently asked questions
What do hard money loans typically cost?
In recent markets, roughly 9% to 14% interest plus 1 to 4 origination points and fees, on terms of 6 to 18 months. Leverage runs 80% to 90% of purchase price and up to 100% of rehab, capped at 65% to 75% of after-repair value. Experienced borrowers with a track record get the better tiers.
Can I use hard money to buy a home to live in?
Consumer-purpose hard money on an owner-occupied home falls under full federal mortgage regulation and is rarely offered. The market is built for business-purpose loans to investors on non-owner-occupied property.
How do I know a hard money lender is legitimate?
A verifiable entity, recorded loans in county records, licensing where the state requires it, a written term sheet listing every fee, and no large upfront fees before commitment. See our vetting guide and the state pages for licensing rules.