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, Jaken Finance Group

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.

Canonical 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

Milestone	Typical timing
Complete file submitted	Day 0
Term sheet	24–48 hours
Appraisal ordered / paid	Day 1–2
Close	7–14 business days
Draw 1 (post-inspection)	3–5 business days

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

Document	Purpose
Purchase contract / LOI	Timeline and price
Sold comps (3+)	ARV / value support
Scope + bids	LTC and draw schedule
Entity docs	LLC OA, EIN, good standing
Exit letter / pro forma	Sale or DSCR path
Insurance quote	Carry and refi PITIA

Gather one PDF folder before submission — incomplete packages delay term sheet past the 24–48 hour window on complete files.