What are typical hard money rates for investment property?

Jaken Finance Group qualified non-owner-occupied files run 8.99%–13.5% interest-only on bridge acquisition and rehab — rate varies by LTV, market, sponsor, and exit.

How fast can a hard money loan close?

Term sheet in 24–48 hours on a complete file; close in 7–14 business days after appraisal payment and satisfied conditions.

What collateral do hard money lenders use?

The subject investment property — sized on ARV, LTC, and scope — with business-purpose entity docs; not owner-occupied primary homes.

Blog

Basic Facts You Should Know about Hard Money Loan

Published June 12, 2026 · Updated July 18, 2026

By Jason Taken · Principal

Hard money facts for investors — 8.99%–13.5% IO rates, 7–14 day close, ARV/LTC sizing, entity requirements, and DSCR exit at 5.75%–10.5%.

These are the hard money facts Jaken Finance Group underwriters apply on non-owner-occupied investment property nationwide — rates, timelines, sizing, and exit paths. Use this as a pre-LOI checklist; pair with Hard Money Loan Statistics 2026 for sourced benchmarks.

Key facts — 2026

Fact	Value
Bridge / fix-and-flip rates	8.99%–13.5% IO
DSCR permanent band	5.75%–10.5%
Coverage	50 states
Collateral	Non-owner-occupied investment property
Term sheet (complete file)	24–48 hours
Close	7–14 business days
Rehab draw release	3–5 business days after inspection

What is hard money · Loan process · Glossary.

Hard money vs bank — side-by-side facts

Factor	Hard money (Jaken Finance Group bridge)	Bank / agency
Rate band	8.99%–13.5% IO	Lower fixed, amortizing
Sizing	ARV, LTC, collateral	Stabilized value, DTI
Close	7–14 business days	30–45+ days typical
Rehab draws	Milestone inspection releases	Rare on distressed stock
Credit	Business-purpose, deal-driven	Personal guarantee common
Property scope	Non-owner-occupied only	Owner-occ and investment

Hard money vs conventional · Benefits for flipping.

What hard money is — and is not

Hard money is short-term, asset-based bridge debt for investors — not a 30-year owner-occupied mortgage. Lenders size on sold comps, ARV, LTC, and documented exit (sale or DSCR refi), not W-2 DTI alone.

Hard money is	Hard money is not
Business-purpose bridge	Primary home FHA/VA
Collateral-driven	Credit-score-only approval
IO during hold	Fully amortizing 30-year
7–14 day close path	45-day bank timeline

Sizing facts — LTV, LTC, ARV

LTC (loan-to-cost) — often 70%–90% of purchase + rehab on qualified files
ARV cap — total debt typically 65%–75% of after-repair value depending on market
Contingency — underwriters expect 10%–15% on rehab scope
Cross-collateral — available on select programs; confirm release on exit

Run fix and flip calculator with ARV − ~8% sale costs before you bind.

Worked sizing example: $180,000 purchase + $40,000 rehab = $220,000 all-in. ARV $285,000. At 75% ARV cap, max loan $213,750 — above 90% LTC on basis. Underwriter sizes to the lower of LTC, ARV cap, and program max — not whichever is highest on your spreadsheet.

Constraint	Calculation	Cap
90% LTC	90% × $220,000	$198,000
75% ARV	75% × $285,000	$213,750
Binding limit	Lower practical leverage	$198,000 typical

Credit and appraisal — qualified facts

Jaken Finance Group uses collateral-first underwriting on business-purpose investment files:

Policy area	Fact
Credit	Credit-flexible — no minimum FICO on select programs
Appraisal	Collateral-first — ARV/LTC with sold comps; no appraisal on select programs for experienced sponsors with documented comps
Entity	LLC vesting standard on investment files
Occupancy	Non-owner-occupied investment property only

“No credit check” and “no appraisal” are never universal — they apply to qualified borrowers on select programs with documented exit and comps. See checklist for evaluating proposals.

Entity and insurance facts

Most files close in LLC with:

Operating agreement matching vesting
EIN and good-standing certificate
Landlord/investor insurance — not owner-occupied HO-3
Business-purpose representations

Mismatch between personal name and LLC at refi can reset seasoning on some DSCR programs.

Timeline facts — term sheet to draw five

The closing clock depends on what remains unresolved, not just the date you submit a form. Ask the lender to name the remaining conditions and identify who owns each task. A term sheet can arrive before title, access, or the repair budget is ready for closing.

Keep the rehab draw calendar separate. Learn whether the contractor must finish work before reimbursement, which invoices the lender needs, and when an inspection can occur. Plan enough working cash to bridge that interval. Confirm dates with the lender and contractor rather than treating an estimated draw time as a funded commitment.

Delays usually trace to incomplete entity docs, scope without bids, or appraiser access — not “hard money is slow.”

Exit facts — sale vs DSCR

Bridge must end:

Exit	When	Permanent band
Sale	Flip — 4–9 months	N/A
DSCR refi	Executed lease + seasoning	5.75%–10.5%
Cash-out BRRRR	DSCR ≥1.0, LTV caps	Same

Confirm seasoning clock (note vs purchase vs CO) before bridge close — cash-out requirements.

Cost facts — beyond rate

Model points, origination, per-draw fees, appraisal, and IO carry:

Example: $198,000 at 10.5% IO ≈ $1,733/mo — five months ≈ $8,665 carry before sale or refi. Add 8% sale costs on flip exit or vacancy during lease-up on hold path.

When hard money fits — quick matrix

Scenario	Fit
Auction / REO speed	Strong
Value-add vacant SFR	Strong
Stabilized leased rental	Use DSCR instead
Owner-occupied buy	Out of scope for Jaken Finance Group
No exit plan	Do not close

When hard money is the wrong tool

Stabilized turnkey with executed lease — start with DSCR at 5.75%–10.5%, not bridge IO
Owner-occupied purchase — outside Jaken Finance Group scope
No sold comps supporting ARV — collateral underwriting has nothing to anchor
Spread under 10% gross after 8% sale costs and modeled carry — pass or renegotiate basis
Scope undefined — draws cannot release without milestones

Hard money loan mistakes to avoid · Using hard money to invest.

Pre-LOI file checklist

Question to settle before the offer	Evidence to bring
What must close by the contract deadline?	Signed contract, access terms, and deposit dates
Which repairs change the property’s use or unit count?	Scope, permit plan, and current photos
What supports the proposed exit value?	Recent sold homes with notes on size and condition
How much cash remains after closing?	Funds statement plus a separate draw and carry budget
Who can sign for the borrowing entity?	Formation records and the authority to borrow
What happens if the refinance falls short?	Payoff estimate and a priced sale alternative

Index the documents in one folder and identify each open question. A concise list of missing items lets the lender distinguish a pricing discussion from a file ready for closing review.