6 Best Hard Money Lenders

How you finance the purchase of your investment property is one of the most important factors for the success and profitability of your endeavor. Whether you invest in fix and flips, rental properties, or any other real estate strategy, you need a reliable lender who provides significant loan amounts and charges reasonable interest rates and other fees. While many investors resort to conventional mortgages, this is not always an option, for various reasons. Sometimes hard money lenders are the best source of financing for property investors.

In this article, we’ve ranked the 6 best hard money lenders in the US market. We’ve evaluated them based on a number of factors to ensure that these lenders are indeed the top option for investors, in their respective categories. Most importantly, we’ve focused on their interest rates, loan amounts and terms, and eligibility requirements.

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The 6 best hard money lenders are:

• Kiavi: Best Overall Hard Money Lender
• Flip Funding LLC: Best Hard Money Lender for Fix and Flip
• CoreVest: Best Hard Money Lender for Rental Properties
• Groundfloor: Best Hard Money Lender for Small Loan Amounts
• The Investor’s Edge: Best Hard Money Lender for No Minimum Credit Score
• Residential Capital Partners: Best Hard Money Lender for No Down Payment   

How We Selected the Best Hard Money Lenders

When selecting the best hard money lenders, we considered a few factors to make sure that our analysis is comprehensive and our results are trustworthy.

Here they are:

• Rates and costs: We looked at the interest rates, the application fees, the origination fees, and the closing costs that lenders charge when providing a hard money loan. We also checked if they impose any prepayment penalty. In this way, we aimed to find the most competitive rates for real estate investors.
• Terms and conditions: We considered the loan amounts which lenders cover, both in absolute terms and relative to the ARV, the LTV, and the LTV. We considered the duration of the loan terms.
• Qualifications and requirements: We looked at the required minimum credit score, DSCR, and previous investing experience. We aimed to select hard money lenders that work with both new and experienced investors and offer the best terms to each group.
• Application process and closing times: We highlighted lenders that have an easy, online pre-qualification and application process and that take no more than a few weeks to close. In this way, investors will not miss on good deals because of their lender taking too much time.
• Total funded amount: We searched for lenders that had originated loans worth multiple millions to ensure their stability and reliability.
• Market coverage: We focused on national lenders so that investors can benefit from their services no matter where they invest.

Kiavi: Best Overall Hard Money Lender

Kiavi (formerly LendingHome) was founded in 2013, with headquarters in San Francisco, CA. Over the past decade, the company has funded $12.3+ billion in property loans in 32 US states plus DC, making it one of the largest hard money lenders to real estate investors nationwide. 

Kiavi Money Lender Rates and Costs

Kiavi provides three different types of hard money loans, and each one of them comes with its own rates, terms, and costs:

Kiavi Fix and Flip/Bridge Loans

Kiavi fix and flip loans can be used for three types of transactions: new purchase, delayed purchase refinance (within 6 months of property purchase), and seasoned finance (after 6+ months of property purchase). Qualifying property types include single-family homes, 2-4 units, condos, and PUDs.

• Interest rate: Starting at 9.25%
• Applications fees: No
• Origination fees: Based on final loan amount
• Prepayment penalty: Varies by state

Kiavi DSCR Rental Loans

Kiavi debt service coverage ratio (DSCR) loans are long-term rental loans, also known as no-income mortgages. They are based on the property’s rental income cash flow and are especially good for the BRRRR strategy.

• Interest rate: Starting at 6.750%
• Applications fees: No
• Origination fees: Based on final loan amount
• Prepayment penalty: Varies by state for the first 3 years; none after year 3

Kiavi Rental Portfolio Loans

These loans apply to investors with portfolios with 5+ rental properties.

• Interest rate: Starting at 6.750%
• Applications fees: No
• Origination fees: Based on final loan amount
• Prepayment penalty: Varies by state

Kiavi Money Lender Terms

• Loan amount: $75,000-$1,500,000
• Maximum loan terms: 12,18, and 24 months with interest-only options
• ARV: Up to 75%
• LTC: Up to 90%
• Rehab costs: Up to 100%

Kiavi DSCR Rental Loans

• Maximum loan terms: 30-year, fully amortizing
• LTV: Up to 75%
• Loan options: 5/1 + 7/1 ARMs, fully amortizing and 30-year fixed rates
• Interest-only options

Kiavi Rental Portfolio Loans

• Loan amount: Starting at $500,000
• Maximum loan terms: 10 and 30 year options
• LTV: Up to 75%
• Loan options: Rate + term or cash-out
• Interest-only options

Kiavi Money Lender Qualifications

Kiavi Fix and Flip/Bridge Loans

• Minimum credit score: FICO 660
• Appraisal: Not required

Kiavi DSCR Rental Loans

• Minimum credit score: FICO 660
• Minimum property value: $75,000
• Minimum DSCR: 1.25
• Appraisal: Required

Kiavi Rental Portfolio Loans

• Minimum credit score: FICO 660
• Minimum investor experience: Real estate investing experience required
• Appraisal: Required

Apply for a Loan with Kiavi

Applying for a Kiavi fix and flip/bridge loan requires:

• Pre-qualification through the Kiavi online platform
• Application through the Kiavi online platform
• Processing: Around 4 days
• Feasibility: Around 1 hour
• Valuation: Around 5 days
• Underwriting: Around 1 day
• Closing

The entire process can take as little as 2 weeks.

Applying for a Kiavi rental loan requires:

• Pre-qualification through the Kiavi online platform
• Application through the Kiavi online platform
• Processing
• Appraisal
• Valuation
• Underwriting
• Closing

To start the pre-qualification process with the best overall hard money lender, real estate investors can visit the Kiavi website or call 844-415-4663.

Flip Funding LLC: Best Hard Money Lender for Fix and Flip

Flip Funding LLC was founded in 2013, with headquarters in Philadelphia, PA. During its history, the company has funded $500+ million in real estate deals, including several different types of loans. Flip Funding LLC provides particularly preferential terms for fix and flip loans, which makes it the best money lender for this specific type of loans. The lender funds investment properties in 46 states plus DC.

Flip Funding LLC Rates and Costs

Flip Funding LLC covers a few types of loans, each of which has its own requirements and terms:

Flip Funding LLC Fix and Flip Loans

The fix and flip loans provided by Flip Funding LLC are best for buying, rehabbing, selling or refinancing, and repeating.

• Interest rate: Starting at 9.99%

Flip Funding LLC Bridge Loans

Bridge loans can be used to buy new properties or refinance existing properties.

• Interest rate: Starting at 9.99%

Flip Funding LLC Rental/DSCR Loans

Through rental loans, this hard money lender gives access to long-term financing at a fixed rate. They can be used to unlock existing equity, consolidate other debt, or purchase a new investment.

• Interest rate: Starting at 7.50%

Flip Funding LLC New Construction Loans

The new construction loan program provides financing to experienced developers during the construction phase and in the long term after a project has been stabilized.

• Interest rate: Starting at 9.99%

Flip Funding LLC Multi-Family/Mixed-Use Loans

These loan types are ideal for investors working with short-term and long-term multi-family and mixed-use investments. Qualifying properties need to have between 5 and 500 units.

• Interest rate: Starting at 5.50%

Flip Funding LLC Commercial Loans

Commercial real estate investors can use these loans for all types of properties except owner-occupied residential.

• Interest rate: Starting at 8.99%

Flip Funding LLC Terms

Most Flip Funding LLC loans require a 10%-20% minimum down payment. 100% funding is available for fix and flip loans for qualifying borrowers.

Flip Funding LLC Fix and Flip Loans

• Loan amount: $150,000-$500,000,000
• Maximum loan terms: 12-24 months
• ARV: Up to 70%
• LTV: Up to 90%
• Rehab costs: Up to 100%

Flip Funding LLC Bridge Loans

• Loan amount: $150,000-$500,000,000
• Maximum loan terms: 24 months
• ARV: Up to 70%
• LTV: Up to 80%
• Up to 75% cash-out refinance

Flip Funding LLC Rental/DSCR Loans

• Loan amount: $150,000-$10,000,000
• Maximum loan terms: 5, 7, 10, and 30-year fixed
• ARV: Up to 80%
• Up to 75% cash-out refinance

Flip Funding LLC New Construction Loans

• Loan amount: $150,000-$50,000,000
• Maximum loan terms: 12-24 months
• ARV: Up to 70%
• LTC: Up to 85%

Flip Funding LLC Multi-Family/Mixed-Use Loans

• Loan amount: $250,000-$10,000,000
• Maximum loan terms: 12-36 months
• LTV: Up to 75%
• LTC: Up to 75%

Flip Funding LLC Commercial Loans

• Loan amount: $250,000-$500,000,000
• Maximum loan terms: 1-30 years
• LTV: Up to 85%

Flip Funding LLC Qualifications

Flip and Funding LLC Fix and Flip Loans

• Minimum credit score: FICO 660
• Minimum investor experience: Not required. Flip Funding LLC is willing to work with new investors. 
• Expected funding time: Closing in 10 business days

Flip Funding LLC Bridge Loans

• Minimum credit score: FICO 650
• Minimum investor experience: Not required. Flip Funding LLC is willing to work with new investors.
• Expected funding time: Closing in 10 days

Flip and Funding LLC Rental/DSCR Loans

• Minimum credit score: FICO 575
• Minimum DSCR: 1.1
• Minimum investor experience: Not required. Both single properties and portfolios qualify.
• Expected funding time: Closing in 3-4 weeks

Flip and Funding LLC New Construction Loans

• Minimum credit score: FICO 660+
• Minimum investor experience: 2+ years of experience required

Flip and Funding LLC Multi-Family/Mixed-Use Loans

• Minimum credit score: FICO 600
• Minimum investor experience: 5+ years of experience for multi-family and 2+ years of experience for mixed-use required

Flip and Funding LLC Commercial Loans

• Minimum credit score: FICO 600

Apply for a Loan with Flip Funding LLC

Similar to the other best hard money lenders, Flip Funding LLC has moved the entire application process online.

To start the application process with the best hard money lender for fix and flip, real estate investors can visit the Flip Funding LLC website or call 844-354-7386.

CoreVest: Best Hard Money Lender for Rental Properties

CoreVest (formerly Colony American Finance) was founded in 2014, with headquarters in Irvine, CA. In less than a decade, the company has closed $20+ billion in loans, funding 140,000+ units in 48 US states. These numbers make it a leader among residential investment lenders across the nation. CoreVest’s loan products rank it as the best hard money lender for short-term and long-term rentals.

CoreVest Hard Money Lender Rates and Costs

CoreVest offers a few types of loans customized for the needs of residential real estate investors. Each loan type has its own specifications:

CoreVest Rental Loans

Rental portfolio loans give access to long-term financing at a fixed rate by unlocking existing equity, consolidating other debt, or purchasing new rental properties. They can be applied to single-family homes, condos, townhomes, and multi-family properties as long as an investor has a minimum of 5 properties in their portfolio.

• Interest rate: Starting at 5.5%
• Origination fees: 1% of loan amount
• Prepayment penalty: Yield maintenance

CoreVest Bridge Loans

Bridge loans provided by CoreVest include fix and flip credit line, buy and hold credit line, portfolio acquisition credit line, and single asset bridge loan. They can be used for single and multiple properties of different residential types.

• Interest rate: Starting at 8%
• Prepayment penalty: No

CoreVest Build For Rent Loans

The build to rent loans serve the needs of experienced real estate developers building new rental properties. They work with single-family homes and townhomes.

• Interest rate: Starting at 8%

CoreVest Multifamily Loans

The CoreVest multifamily loan products can be used to acquire, build, renovate, and refinance multifamily homes , condos, and mixed-use properties with majority of residential units.

• Interest rate: Starting at 8%
• Prepayment penalty: Based on loan term
• Yield maintenance: Based on loan term

CoreVest Hard Money Lender Terms

CoreVest Rental Loans

• Loan amount: $500,000-$10,000,000
• Maximum loan terms: 3, 5, 7, and 10 years
• LTV: Up to 75%
• Non-resource options available

CoreVest Bridge Loans

• Loan amount: $75,000-$50,000,000
• Maximum loan terms: 6-24 months plus extension
• LTV: Up to 80%
• LTC: Up to 70%
• Fixed and floating rate options available
• Revolving credit options available
• Non-recourse options available

CoreVest Build For Rent Loans

• Loan amount: $3,000,000-$50,000,000
• Maximum loan terms: 24 months plus extension
• Up to 75% of cost on construction loans
• Up to 65% of value on stabilized assets
• Fixed and floating rates available

CoreVest Multifamily Loans

• Loan amount: $1,000,000-$50,000,000 for term and $3,000,000-$15,000,000 for bridge loan
• Maximum loan terms: 3, 5, 7, and 10 years for term and 18-24 months plus extension for bridge loan
• LTV: Up to 75%
• Interest-only and amortization options available
• Non-recourse options available

CoreVest Hard Money Lender Qualifications

CoreVest Rental Loans

• Stabilized rental portfolio with 90% leased
• Minimum DSCR: 1.20
• Expected funding time: Closing within 4-6 weeks

CoreVest Bridge Loans

• Minimum credit score: FICO 620+
• Appraisal: Not required
• Expected funding time: Closing within 10 days

CoreVest Build For Rent Loans

• Appraisal: Not required

CoreVest Multifamily Loans

• Appraisal: Not required

Apply for a Loan with CoreVest Hard Money Lender

Getting a hard money loan from CoreVest requires the following steps:

• Origination: Submit an online application or call CoreVest. Work with a CoreVest Relationship Manager to size and price the loan.
• Underwriting: Work with a dedicated in-house team for guidance through the process.
• Closing: Close in as little as 24 hours once the loan has been approved.

To start the application process with the best hard money lender for rental properties, real estate investors can visit the CoreVest website or call 844-223-7596.

Groundfloor: Best Hard Money Lender for Small Loan Amounts

Groundfloor was founded in 2013, with headquarters in Atlanta, Georgia. The company was established as the first and only private real estate lending marketplace for non-accredited investors. This hard money lender is a particularly good option for investors looking for small loan amounts in 32 US states. According to the Groundfloor websites, thousands of investors who’ve used their loans are already earning an average return of 12%.

Groundfloor Rates and Costs

Groundfloor offers a few different types of hard money loans that cover the needs of relatively new investors who require only a small amount:

• Fix and flip loans: With these loans, investors can purchase properties that need cosmetic renovations or complete reconstruction.
• Fix to rent loans: Investors can find rental properties, fix them, and finance them with long-term leverage.
• Rehab investor loans: With these hard money loans, investors can invest in properties that require substantial renovations.
• New construction loans: These loans allow home builders to finance the new home construction projects.

All Groundfloor loans have the same terms and requirements:

• Interest rate: Starting at 7.5%
• Applications fees: $495
• Origination fees: Between 2.75% and 4% of the principal amount of the loan
• Closing costs: $1,250
• Prepayment penalty: Three-month minimum interest within the first 3 months; none after the first 3 months

Groundfloor Terms

• Loan amount: $75,000-$750,000
• Maximum loan terms: 12 and 18 months
• ARV: Up to 70%
• LTC: Up to 90%

Groundfloor Qualifications

• Minimum credit score: 640
• Minimum investor experience: No minimum transactions experience required; 5 year lookback for experience
• Expected funding time: Within 10-14 business days
• Minimum property value: $50,000

Apply for a Loan with Groundfloor

Applying for a Groundfloor loan requires going through the following steps:

• Submit an online loan application
• Discuss the project and the loan details with a Groundfloor representative
• Submit all required documentation during loan processing
• Go through the underwriting stage
• Move to closing

To start the loan application process with the best hard money lender for small loan amounts, real estate investors can visit the Groundfloor website or call 404-850-9224.

The Investor’s Edge: Best Hard Money Lender for No Minimum Credit Score

The Investor’s Edge (formerly Do Hard Money) was founded in 2009, with headquarters in West Jordan, UT. Unlike most other best hard money lenders, The Investor’s Edge provides 100% financing options on most deals. Services are available in 45 US states. Because properties are used as collateral, this lender does not check the credit score of borrowers.

The Investor’s Edge Rates and Costs

The hard money loans offered by The Investor’s Edge are mostly used to fund fix and flip deals, but they can also pay for the BRRRR strategy and wholesaling.

• Interest rate: Starting at 12%
• Origination fees: Starting at 3.5%
• Prepayment penalty: No

The Investor’s Edge Terms

• Maximum loan terms: 5 months (with no payments throughout)
• ARV: Up to 75%
• Up to 100% financing

The Investor’s Edge Qualifications

• Minimum credit score: Not required
• Minimum investor experience: No experience required
• Expected funding time: An average of 12 days

Apply for a Loan with The Investor’s Edge

The Investor’s Edge does not check and verify as much financial information as other hard money lenders, so the application and approval process takes an average of 12 days. The steps can be completed online. Moreover, the platform provides access to off market properties.

To start the loan application process with the best hard money lender for no minimum credit score, real etate investors can visit The Investor’s Edge website or call 801-691-7678.

Residential Capital Partners: Best Hard Money Lender for No Down Payment

Residential Capital Partners was founded in 2009, with headquarters in Dallas, TX. The company has established its position as one of the top private lenders in the single-family rehab and rental industry, with nationwide coverage. The main advantage of hard money loans provided by Residential Capital Partners is the option for 100% funding, making them the best choice for no down payment.

Residential Capital Partners Rates and Costs

This hard money lender provides two types of loans with different terms and requirements:

Residential Capital Partners Fix and Flip Loans

These no-money down loans can be used to buy, improve, and sell homes. Qualifying property types include single-family homes, townhomes, condos, and 2-4 unit family residentials.

• Interest rate: 10% on average
• Origination fees: 3 points
• Prepayment penalty: No

Residential Capital Partners Bridge and Long-Term Rental Loans

These loans provide financing for acquiring buy-to-rent properties. They can be used to purchase single-family homes, townhomes, condos, and 2-4 unit family residential properties.

• Interest rate: 9.9% for bridge loans and starting at 6.625% for long-term rental loans
• Origination fees: 3 points
• Closing costs: $700 appraisal and processing fee and $1,000-$1,495 documentation preparation fee
• Prepayment penalty: May apply

Residential Capital Partners Terms

Residential Capital Partners Fix and Flip Loans

• Down payment: 0%
• Loan amount: $75,000-$1,250,000
• Maximum loan terms: 9 months
• ARV: 100% financing up to 70% of ARV

Residential Capital Partners Bridge and Long-Term Rental Loans

• Down payment: 0%
• Loan amount: $50,000-$5,000,000
• Maximum loan terms: 6 months for bridge loans and 5/1 ARM, 7/1 ARM, and 30-year fixed rate for long-term rental loans
• LTV: 100% financing up to 70% of LTV for bridge loans and up to 80% for long-term rental loans

Residential Capital Partners Qualifications

Residential Capital Partners Fix and Flip Loans

• Minimum investor experience: No experience required
• Expected funding time: Closing in 14 days

Residential Capital Partners Bridge and Long-Term Rental Loans

• Minimum investor experience: Only businesses entities are eligible; individual investors are not eligible.
• Expected funding time: Closing in 14 days

Apply for a Loan with Residential Capital Partners

Applying for a hard money loan from Residential Capital Partners entails the following steps:

• Apply for credit on the website
• Receive ResCap Proof of Funds Letter
• Submit property loan application
• Receive approval
• Close property loan
• Receive post-closing services including repair draws, payments, and payoffs

To start the pre-qualification process with the best hard money lender for no down payment, real estate investors can visit the Residential Capital Partners website or call 866-441-0223.

Takeaway

There are dozens of hard money lenders available to both house flippers and rental property investors across the US market. While they seem to offer similar conditions, there are important differences between them, and you should conduct careful research before applying for a loan. Our review shows that Kiavi is the best overall hard money lender. Investors who want to flip homes can check out Flip Funding LLC, while rental property owners should consider CoreVest. Groundfloor can serve the needs of investors who need a small amount of money, whereas Residential Capital Partners can help investors with no initial capital for a down payment. Last but not least, The Investor’s Edge is the ideal option for those with poor credit history.