Blog
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 — roughly 3 to 6 percentage points above the 30-year fixed mortgage rate. 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): 6.49% — Freddie Mac PMMS, week ending June 25, 2026
- Flips purchased with financing: 38.9% of Q1 2026 flips — ATTOM Q1 2026 Home Flipping Report
- 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 6.49% for the week ending June 25, 2026 — meaning hard money carries a 3 to 6+ percentage point premium over conventional financing. 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. Total carry cost over a 6-month hold: roughly $30,000 in interest plus points and 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) | 6.49% | 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.
Sources
- ATTOM Q1 2026 U.S. Home Flipping Report — financing share data (June 18, 2026)
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate 6.49%, week ending June 25, 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.
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.