What types of hard money loans does Jaken Finance Group offer?

Business-purpose bridge on non-owner-occupied property — fix-and-flip acquisition + rehab, light bridge, heavy value-add rehab, and transitional carry before DSCR refi at 5.75%–10.5%. All qualified bridge files price at 8.99%–13.5% IO.

Can hard money fund ground-up construction?

Select programs fund major rehab and ground-up on investment property when feasibility, budget, and exit are documented. Draws release on milestone inspection — same mechanics as fix-and-flip holdbacks.

When should an investor exit bridge to DSCR?

When the property is lease-ready, DSCR ≥1.0 on market rent, and seasoning requirements are met — typically 6–12 months from bridge note date. DSCR permanent runs 5.75%–10.5% on qualified non-owner-occupied files.

Blog

Innovative Hard Money Loan Options

Published June 12, 2026 · Updated July 18, 2026

By Jason Taken · Principal, Jaken Finance Group

Fix-and-flip, bridge, rehab, and DSCR exit paths — how investors match 8.99%–13.5% IO bridge products to non-owner-occupied acquisition and hold strategies.

Hard money is not one loan shape — it is a family of business-purpose bridge products on non-owner-occupied collateral, each sized for a different investor path: flip, BRRRR, heavy rehab hold, or transactional gap. Jaken Finance Group prices qualified bridge files at 8.99%–13.5% interest-only; permanent hold exits move to DSCR at 5.75%–10.5% when the asset stabilizes. This guide maps the main product options, when each fits, and what underwriters expect in the file.

Product map — bridge to permanent

Product	Hold period	Primary exit	Rate band
Fix-and-flip	4–9 months	Resale	8.99%–13.5% IO
Light bridge	3–6 months	Sale or refi	8.99%–13.5% IO
Heavy rehab / construction	6–18 months	Sale or DSCR	8.99%–13.5% IO
Transitional carry	6–12 months	DSCR refi	8.99%–13.5% IO → 5.75%–10.5%

What is hard money · Fix and flip requirements · DSCR hub · Bridge loans for investors.

Fix-and-flip acquisition + rehab

The most common hard money structure: fund purchase and rehab holdback on a distressed non-owner-occupied SFR or small multifamily, exit on resale within the bridge term.

Sizing anchors:

Parameter	Typical qualified range
LTC	Up to ~90% of all-in basis
ARV cap	~70%–75% of ARV
Term	6–18 months
Draws	Milestone inspection releases

Fix and flip calculator · 100% LTC program details · Benefits of hard money for flipping.

Underwriting requires three sold comps, line-item scope with 10%–15% contingency, LLC docs, and a resale pro forma showing spread after ~8% sale costs and IO carry.

Light bridge — cosmetic or turn-key-adjacent

Not every bridge file needs a $50K rehab budget. Light bridge fits:

Cosmetic refresh — paint, flooring, fixtures under $25K
Quick close on off-market deal before competition arrives
Short hold — list within 30–60 days of acquisition

Leverage may sit at lower LTC when ARV premium is thin. IO at 8.99%–13.5% still accrues from day one — a 3-month hold at $180K note and 10% IO costs roughly $4,500 in carry alone. Light bridge only works when spread after costs clears that burn quickly.

Transactional bridge — buy before sell

When liquidity is trapped in a departing asset, bridge debt funds the next acquisition until the first property closes:

Example structure: Property A under contract to sell; Property B requires immediate close. Bridge on B (or cross-collateral where permitted) with payoff from A’s proceeds.

Document	Purpose
Property B purchase contract	Acquisition terms
Property A sale contract	Paydown source
Comps on B	ARV if flip; as-is if wholesale
Net proceeds estimate on A	Payoff capacity

Hard money and bridge loans for flips · Using hard money to invest.

Confirm release terms on cross-collateral before close — delayed sale on Property A extends IO on the entire note.

Heavy rehab and construction-adjacent programs

Investors pursuing gut rehabs, additions, or ground-up SFR on infill lots need longer draw schedules and higher holdbacks. These files look like fix-and-flip structurally but carry:

Longer bridge term — 12–18 months
Feasibility review — budget, timeline, GC contract
Interest reserve — some programs hold 3–6 months IO in the loan
Higher contingency — 15%+ on complex scope

Rehab loans for investment property · Hard money for code violations.

Exit must be documented at LOI — resale ARV or DSCR refi at 5.75%–10.5% with lease plan if hold is the path.

Value-add hold — bridge before DSCR

BRRRR and value-add hold operators use the same 8.99%–13.5% IO bridge to acquire and rehab, then refinance to DSCR permanent when:

Rehab complete — CO or final inspection
Lease executed — tenant in place or lease ready for DSCR desk
DSCR ≥1.0 on market or actual rent
Seasoning met — often 6–12 months from bridge note date

Hard money buy-and-hold strategy · Scale portfolio with DSCR · DSCR for investment property.

Bridge without a confirmed DSCR path is indefinite high-IO carry — pre-qualify the refi lender before you close acquisition bridge.

Worked example — flip product

Assumptions: $160,000 purchase + $35,000 rehab = $195,000 all-in. ARV $255,000. 88% LTC → $171,600 at 10.75% IO ≈ $1,537/mo over 5 months ≈ $7,685 carry.

Line	Amount
ARV	$255,000
Sale costs (~8%)	−$20,400
Net sale	$234,600
All-in basis	−$195,000
Carry + closing (approx.)	−$10,500
Spread (pre-tax)	~$29,100

Worked example — BRRRR product with DSCR exit

Assumptions: Same $195,000 all-in. Bridge $171,600 at 10.75% IO for 8 months during rehab + lease-up ≈ $12,296 carry. Post-rehab DSCR refi at $204,000 (80% of $255K ARV) and 7.25% PITIA ≈ $1,390/mo vs $1,650/mo market rent → DSCR ~1.19.

Phase	Product	Monthly debt service
Months 1–8	Bridge IO 10.75%	~$1,537 IO only
Month 9+	DSCR 7.25% amortizing	~$1,390 PITIA

Cash flow positive after refi — but only if lease, appraisal, and seasoning align on the DSCR desk timeline you confirmed at bridge origination.

Cross-collateral and portfolio bridge

Experienced sponsors with multiple non-owner-occupied assets may access cross-collateral programs — one note secured by two or more properties. Use cases:

Acquire Property C while A sells and B rehab completes
Lower blended LTV across a portfolio for higher advance on the new acquisition

Trade-offs: release provisions must be explicit — paying off one asset should trigger partial release on others. Checklist for evaluating hard money proposals covers cross-collateral questions to ask at term sheet.

Condo, townhome, and HOA considerations

Not all hard money products fit condo or townhome collateral — HOA rental caps, litigation, and owner-occupancy ratios affect exit. See hard money for condos and townhomes before you assume flip leverage on association-governed stock.

Hard money vs DSCR — when to use which

Situation	Start with
Distressed, not lease-ready	Hard money 8.99%–13.5% IO
Stabilized with executed lease	DSCR 5.75%–10.5%
Auction / 14-day close	Hard money bridge
Cash-out on leased SFR	DSCR (not bridge)

DSCR vs hard money vs conventional · Hard money vs conventional.

File package by product type

Product	Required docs
Fix-and-flip	Contract, comps, scope, entity, insurance, exit pro forma
Transactional bridge	Above + departing asset sale contract
BRRRR / value-add hold	Above + lease plan or draft lease for DSCR path
Heavy rehab	Feasibility, GC contract, extended scope, timeline

Hard money application process · Hard money loan mistakes.

Gather one PDF package before submission — incomplete files queue behind complete ones and miss 7–14 day close windows.

Risks across product types

IO carry — each product accrues 8.99%–13.5% until exit; longer rehab = more burn
Product mismatch — using flip bridge on a 12-month gut rehab without extension terms
DSCR exit slip — seasoning, appraisal, or lease delay extends bridge indefinitely
Scope creep — change orders without lender approval stall draw releases
ARV optimism — size all products on sold comps, not active list prices

When hard money options are the wrong tool

Owner-occupied purchase — Jaken Finance Group finances non-owner-occupied investment property only
Stabilized turnkey with lease — skip bridge, start at DSCR
No documented exit — any bridge product without sale or refi path
Spread under 10% gross on flip after 8% costs — renegotiate basis or pass