Hard Money Loan Calculator
Calculate hard money loan costs before you borrow — monthly interest payments, origination points, total carrying costs, and effective cost of capital. Free, updates in real time.
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What Is a Hard Money Loan?
A hard money loan is a short-term, asset-based loan used primarily by real estate investors for fix-and-flip deals, BRRRR purchases, and bridge financing. Unlike conventional mortgages, hard money loans are issued by private lenders and are based on the property's value (particularly the ARV) rather than the borrower's credit score or income.
They close fast — sometimes in 5–10 days vs. 30–45 days for conventional loans — which is critical when buying distressed properties that require quick closings.
How Hard Money Loans Are Priced
Hard money loans have two primary cost components:
- Interest rate: Typically 10–15% per year, charged on the outstanding loan balance. Most hard money loans are interest-only, meaning you pay only the interest each month and repay the full principal at payoff (when you sell or refinance).
- Origination points: An upfront fee expressed as a percentage of the loan amount. 1 point = 1% of the loan. Most hard money lenders charge 2–4 points. On a $150,000 loan, 2 points = $3,000 due at closing.
Typical Hard Money Loan Terms
- LTV: 65–80% of purchase price or ARV (varies by lender)
- LTC (loan to cost): Some lenders finance up to 90% of total project cost (purchase + rehab)
- Term: 6–18 months, with extensions available (usually for a fee)
- Rate: 10–15% annually
- Points: 2–4 at origination
- Prepayment penalty: Many hard money loans have a minimum interest period (e.g., 3 months) even if you pay off early
How to Compare Hard Money Lenders
Don't just compare rate — compare total cost. A lender charging 11% with 3 points on a 6-month loan may cost more than one charging 13% with 1 point. Use this calculator to compare total carrying costs between multiple lenders before choosing.
Frequently Asked Questions
Do hard money lenders check credit?
Most do a soft pull, but credit score is rarely the deciding factor. They care primarily about the deal — ARV, purchase price, rehab scope, and your experience. Bad credit won't necessarily disqualify you; a bad deal will.
Can I get 100% financing with hard money?
Some lenders offer 90% LTC (loan to cost) financing, meaning they cover 90% of purchase + rehab. You'd bring 10% plus points/closing costs. True 100% financing is rare and typically requires strong relationships or cross-collateralization.
What happens if I can't pay off the loan in time?
Most lenders offer extensions for a fee (typically 1–2 points or a rate bump). Communicate early — lenders generally prefer to extend than foreclose. If you're consistently over timeline, revisit your rehab scoping process.
How do I find hard money lenders?
BiggerPockets' lender directory, local REIA meetings, and referrals from other investors are the best sources. National lenders like Lima One, Kiavi, and RCN Capital are worth comparing for rates, but local portfolio lenders often have more flexibility on terms.