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Hard Money Loan Statistics 2026
By Jaken Finance Group · Principal, Jaken Finance Group
Hard money loan rates, points, LTV, and closing timelines in 2026 — sourced from ATTOM, Freddie Mac, and industry data. Key stats for real estate investors.
Hard money loan rates in 2026 typically run 9.5% to 13% with 1.5 to 3 origination points, on terms of 6 to 24 months at 60% to 75% LTV. That is roughly 2 to 6 percentage points above the 30-year fixed mortgage rate, which hit 7.28% on October 1, 2026. These are asset-based, short-term loans used by real estate investors for fix-and-flip, bridge, and construction projects.
Key stats at a glance
- Average hard money rate (first-position): 9.5%–13% — industry rate surveys, 2026
- Origination points: 1.5–3 points (1 point = 1% of loan amount) — industry standard, 2026
- Typical LTV cap: 60%–75% ARV; up to 80% for experienced borrowers — LendingTree, AmeriSave, 2026
- Typical loan term: 6–24 months; some lenders extend to 36 months — AmeriSave, 2026
- 30-year fixed mortgage (comparison): 7.28% — Freddie Mac PMMS, October 1, 2026 (6.49% on June 25, 2026)
- Prime rate: 7.00% since September 17, 2026, up from 6.75% — FRED
- Flips purchased with financing: 38.9% of Q1 2026 flips — ATTOM Q1 2026 Home Flipping Report
- Homes flipped in Q2 2026: 77,991, or 6.2% of all home sales — ATTOM Q2 2026 Home Flipping Report
- Typical gross flip return: 21.5% in Q2 2026, down from 25.7% in Q1 — ATTOM
- Typical days from purchase to resale: 161 in Q2 2026 — ATTOM
- Typical close timeline: 7–21 business days with complete file — industry norm
Hard money loan rates by loan type (2026)
| Loan type | Typical rate range | Origination points | Best for |
|---|---|---|---|
| Fix-and-flip (first position) | 9.5%–12.5% | 1.5–3 | Acquisition + rehab draws |
| Bridge (stabilized property) | 8.5%–11.5% | 1–2.5 | Short hold before refi or sale |
| New construction | 10%–13% | 2–3 | Ground-up or major rebuild |
| Commercial hard money | 9%–12% | 1.5–3 | Non-owner-occupied CRE |
| Second-position hard money | 12%–16% | 2–4 | Gap or subordinate financing |
Sources: HardMoneyHome.com 2026 rate survey; Gauntlet Funding 2026 market analysis; LendingTree hard money guide.
According to Freddie Mac’s Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage was 7.28% as of October 1, 2026, up from 6.49% in late June. Hard money now carries roughly a 2 to 6 percentage point premium over conventional financing. Much of that narrowing comes from the jump in mortgage rates. The hard money ranges above come from surveys published earlier in 2026, so compare them against current quotes. That spread reflects the short term, asset-based underwriting, and speed hard money lenders provide.
Points, fees, and total cost
| Fee type | Typical range | Notes |
|---|---|---|
| Origination points | 1.5–3 points | Paid at closing; negotiable for repeat borrowers |
| Processing / underwriting | $500–$2,500 | Varies by lender |
| Appraisal | $400–$750 | Required on most deals |
| Draw inspection fees | $100–$250 per draw | Charged per rehab draw release |
| Prepayment penalty | 3–6 months minimum interest | Common; verify before signing |
On a $400,000 hard money loan at 11% with 2 points, origination alone is $8,000. Monthly interest-only payment is approximately $3,667. Over a 6-month hold, that is about $22,000 of interest plus $8,000 of points — roughly $30,000 before processing, appraisal, and draw fees.
LTV and LTC benchmarks
Hard money lenders underwrite to the lower of purchase price or ARV, capped by leverage limits:
| Metric | Typical range | What it means |
|---|---|---|
| LTV (loan-to-value) | 60%–75% of ARV | Max loan as % of after-repair value |
| LTC (loan-to-cost) | 85%–100% of total project cost | Covers purchase + rehab on strong deals |
| Down payment | 25%–40% of purchase price | Cash equity required at closing |
| Rehab holdback | 100% of approved scope | Funded via draw schedule |
See understanding loan-to-cost ratios and demystifying loan-to-value ratio for deeper breakdowns.
Loan structure and terms
Most 2026 hard money loans share these structural features:
- Interest-only payments during the hold period
- Balloon payoff at maturity (sale, refi, or extension)
- 6–24 month terms standard; 36 months available from select lenders
- Asset-based approval — property value and exit strategy matter more than W-2 income
- Credit minimums — many lenders accept 620+ FICO; best pricing at 700+
According to ATTOM’s Q1 2026 Home Flipping Report, 38.9% of flipped homes were purchased with financing — up from 38.6% in the prior quarter. Hard money and private lending fill a significant share of that investor financing demand.
What drives hard money pricing
Seven factors move your rate and points up or down:
- Leverage (LTV/LTC) — Lower leverage = lower rate. A 60% LTV deal may price 0.5%–1.5% below an 80% LTV deal.
- Borrower experience — Investors with 3+ completed flips qualify for best-tier pricing.
- Credit score — 700+ FICO typically saves 0.5%–1% vs. sub-660 borrowers.
- Property type — SFR is cheapest; mixed-use, rural, and condo carry premiums.
- Loan position — Second-position loans price 2%–4% higher than first-position.
- Term length — Shorter terms (6 months) may price 0.5% higher than 12-month terms.
- Market and capital costs — Rates track the broader interest rate environment set by the Federal Reserve.
Hard money vs. conventional: rate spread (2026)
| Financing type | Typical rate | Term | Close speed |
|---|---|---|---|
| 30-year fixed (owner-occupied) | 7.28% (Oct 1, 2026) | 30 years | 30–45 days |
| Conventional investment property | 6.9%–7.5% | 30 years | 30–45 days |
| Hard money (fix-and-flip) | 9.5%–12.5% | 6–24 months | 7–21 days |
| DSCR (rental, no income docs) | 6.1%–8.5% | 30 years | 21–30 days |
Conventional investment rate range: HonestCasa May 2026 analysis. DSCR range: DSCR Finder June 2026 lender comparison.
Hard money is not a substitute for long-term rental financing — it is a speed and flexibility tool for time-sensitive acquisitions and rehabs. See hard money loans vs. conventional financing for a full comparison.
Benchmark rates behind hard money pricing (October 2026)
Many private lenders fund loans with bank credit lines and investor capital, which tend to price off short-term benchmarks. Long-term rates drive your exit, whether that is a retail buyer’s mortgage or a DSCR refinance.
| Benchmark | Latest | A year earlier | Source |
|---|---|---|---|
| Fed funds target range | 3.75%–4.00% (Oct 2, 2026) | — | FRED upper / lower |
| Prime rate | 7.00% (since Sept 17, 2026) | 7.25% (Oct 1, 2025) | FRED DPRIME |
| 10-year Treasury yield | 5.24% (Oct 1, 2026) | 4.12% (Oct 1, 2025) | FRED DGS10 |
| 30-year fixed mortgage | 7.28% (Oct 1, 2026) | 6.34% | Freddie Mac PMMS |
| 15-year fixed mortgage | 6.60% (Oct 1, 2026) | — | Freddie Mac PMMS |
Two trends stand out. Prime is a quarter point lower than a year ago, so short-term funding has not become much more expensive. The 10-year yield is more than a point higher, which raises the rate on the loan that pays off your bridge. In 2026, exit risk has grown faster than carry cost.
Home flipping statistics — Q2 2026
ATTOM’s Q2 2026 U.S. Home Flipping Report, released October 1, 2026, is the most current national read on the investors who use hard money.
| Metric | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Homes flipped | 77,991 | 64,760 | 80,477 |
| Share of all home sales | 6.2% | 8.0% | 7.3% |
| Typical gross return | 21.5% | 25.7% | 27.6% |
| Typical gross profit | $60,526 | $66,932 | $71,000 |
| Days from purchase to resale | 161 | 165 | 166 |
| Share sold to FHA buyers | 10.7% | 10.1% | 12.3% |
More findings from the same report:
- Price band: homes bought for $100,000–$200,000 earned the best typical margin, 28%. Homes bought for $50,000 or less lost a typical $15,000.
- Big-metro winners: Pittsburgh (81.5%), Buffalo (76.6%), New Orleans (75%), Virginia Beach (63.4%), and Philadelphia (62.8%) had the highest typical margins among metros over 1 million people.
- Big-metro laggards: San Antonio posted a typical loss of 0.3%. Dallas (1.8%), Austin (2.8%), and Houston (3.7%) were barely positive.
- Data note: ATTOM expanded its property record coverage in 2026, so count-based figures partly reflect broader coverage.
State results vary even more. The ATTOM Q2 2026 state breakdown shows Ohio leading flip activity at a 9.6% flipping rate. Indiana posted a 43.4% typical gross return, while Texas managed 2.8%.
What these numbers mean for hard money borrowers
ATTOM’s gross profit excludes rehab and holding costs. Its methodology notes those costs typically run 20% to 33% of ARV.
Rough illustration: a 21.5% return and a $60,526 gross profit imply a purchase near $281,500 and a resale near $342,000. Twenty percent of that resale price is about $68,400, which is more than the gross profit. In other words, the typical national flip in Q2 2026 left little or nothing after costs. Profitable flippers bought well below the median spread.
Financing is a meaningful slice of the remaining margin. Example: a $250,000 hard money loan at 11% interest-only, held for ATTOM’s typical 161 days, costs about $12,130 in interest. Add 2 points ($5,000) and financing runs about $17,100, or roughly 28% of the typical gross profit. Shaving a month off the hold, or a point off origination, moves real dollars.
For comparison, Jaken Finance Group prices qualified fix-and-flip loans at 8.99%–13.5% interest-only. Leverage reaches up to 100% LTC on qualified files, capped at 75% of ARV, with 6–12 month terms and 7–10 business day closings. Qualified DSCR rental loans run 5.75%–10.5%. Model your own deal with the fix-and-flip calculator, and track monthly pricing in the hard money and DSCR rate index.
Sources
- ATTOM Q2 2026 U.S. Home Flipping Report — national flip volume, returns, price bands, metros (October 1, 2026)
- ATTOM U.S. Home Flipping Trends by State – Q2 2026 — state flip rates and returns (October 2, 2026)
- FRED: prime rate, Fed funds target, 10-year Treasury — benchmark rates through October 2, 2026
- ATTOM Q1 2026 U.S. Home Flipping Report — financing share data (June 18, 2026)
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate 7.28% and 15-year 6.60%, October 1, 2026
- LendingTree: What Is a Hard Money Loan? — rate ranges and LTV benchmarks
- HardMoneyHome.com: Hard Money Loan Interest Rates in 2026 — rate-by-loan-type table
- Gauntlet Funding: Hard Money Loan Rates 2026 — market context and points
Jaken Finance Group provides hard money and private lending for non-owner-occupied investment properties. Learn about fix-and-flip financing or review hard money loan basics.
How to use these statistics on a real deal
- Start from your local spread, not the national median. State and metro returns in the ATTOM data range from losses to more than 80%.
- Subtract rehab and carry from any gross profit figure before comparing it with your deal.
- Price the exit at today’s mortgage rate. A one-point jump in the 30-year rate changes what your buyer, or your DSCR lender, will pay.
- Compare quotes on total cost — rate, points, fees, and expected months held — not on rate alone.
- Recheck these figures each quarter. ATTOM, Freddie Mac, and FRED update on fixed schedules, and 2026 has moved quickly.
Hard Money Loan Statistics 2026 — next step (2026)
Submit scenario · Pre-qualify · (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.