Jaken Finance Group · Updated
Jaken Finance Group provides Chicago hard money loans for non-owner-occupied investment properties, including bungalow renovations, two-flat rehabs and three-flat rental conversions. We work from 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196, in Cook County, serving the city and surrounding metro.
Start with the acquisition price, itemized rehab budget, supported after-repair value (ARV) and your intended sale or refinance. Those figures determine the available loan and the cash you will need. A neighborhood name or a low advertised rate cannot establish either one.
Submit a Chicago fix-and-flip scenario or compare the broader investment property financing programs.
Chicago hard money terms and program differences
These are Jaken Finance Group’s published program ranges as of August 2026, checked for this page on September 6, 2026. They are conditional ranges, not a personalized offer. The Illinois hard money and DSCR rate report and interest-rate page provide the broader rate context.
| Feature | Fix and flip / rehab hard money | Acquisition bridge |
|---|---|---|
| Interest rate | 8.99%–13.5%, interest-only | 8.99%–13.5%, interest-only |
| Leverage | Up to 100% LTC on qualified files | Up to 90% purchase price |
| Value limit | Up to 75% ARV; fund the lower of the LTC and ARV limits | Varies by exit |
| Term | 6–12 months | 12–24 months |
| Closing | 7–10 business days after borrower conditions are satisfied | 7–10 business days after borrower conditions are satisfied |
| Best starting point | Acquisition plus a documented renovation | Acquisition or a financing gap with a defined exit |
Loan-to-cost (LTC) measures the total loan against approved purchase-plus-rehab cost. Funding 90% of the purchase and 100% of rehab produces a different LTC; it is not a 90% LTC loan. The value limit can reduce either structure. Qualified luxury flip files have a separate program: Up to 100% LTC on qualified files up to $2.5M, with 12–18 months terms. Review the leverage requirements and confirm the amount and term for your project.
Credit-flexible underwriting with no minimum FICO on select programs. Approval is collateral-first — driven by ARV, LTC, scope, liquidity, and exit strategy. We may pull credit to review trends, but FICO is not the primary approval driver. No appraisal required on select bridge and fix-and-flip programs for experienced sponsors with documented ARV comps. Standard programs use third-party valuation.How much cash do I need for a Chicago hard money loan?
Separate the acquisition equity from the cash required to operate the project. Even a qualified 100% LTC loan does not automatically pay every expense or place the rehab budget in your account at closing.
| Cash category | What to include |
|---|---|
| Purchase equity | Purchase price less the initial acquisition advance; account for earnest money already paid |
| Loan and closing fees | Quoted points, underwriting or processing, valuation, title, escrow, recording and applicable transfer charges |
| Rehab float | Contractor deposits and completed work you must pay for before a draw is reimbursed |
| Carry and reserves | Interest, taxes, insurance, utilities, maintenance and any required liquidity reserve |
| Contingency | Cash for scope changes, slower completion or a lower sale price |
One origination point equals 1% of the loan amount. Our points and fees guide explains the published typical 0–3 point range and how to compare it with interest. Inspection fees, minimum interest and extension charges must come from your actual term sheet; there is no universal fee schedule on this page.
Before accepting terms, confirm whether interest accrues on the full commitment or only disbursed funds, who handles draw requests, what a failed inspection costs, and how early payoff is calculated. These details can change the cost more than a small difference in the headline rate.
Worked example: illustrative Logan Square three-flat
This is an educational financing scenario, not a funded transaction, appraisal or current neighborhood price estimate. Assume a $385,000 purchase, $165,000 approved rehab and a hypothetical $725,000 ARV.
| Calculation | Amount |
|---|---|
| Purchase plus rehab | $550,000 |
| Illustrative acquisition advance: 90% × $385,000 | $346,500 |
| Rehab holdback | $165,000 |
| Total loan commitment | $511,500 |
| Actual LTC: $511,500 ÷ $550,000 | 93% |
| 75% ARV limit: 75% × $725,000 | $543,750 |
| Purchase equity before fees and reserves | $38,500 |
The $511,500 commitment fits below the assumed ARV cap. It funds 93% of project cost because the full rehab holdback is added to a 90% purchase advance. If the file instead qualified for the illustrated maximum LTC, the assumed ARV limit would still cap the loan at $543,750, leaving at least $6,250 of project cost unfunded before fees and reserves.
For a cost illustration, assume 11% interest on the full $511,500 commitment for six months and two points paid in cash. Monthly interest is $4,688.75; six months is $28,132.50; points are $10,230. Purchase equity, points and six months of budgeted interest total $76,862.50. This is not an all-in cash-to-close quote: add third-party costs, property expenses, contingency and rehab float, and avoid counting an interest reserve twice if it is collected at closing.
A hypothetical refinance at 75% of the same $725,000 value produces $543,750 before costs. After paying the fully drawn $511,500 principal, only $32,250 remains before refinance charges, accrued interest and other payoffs. That is not recovery of all invested cash. The actual DSCR exit must also qualify on rent, expenses, valuation and the refinance program’s requirements.
First-time investors and experienced sponsors
First-time investors can be considered. Bring an itemized contractor bid, a realistic schedule, comparable sales and bank statements supporting your contribution and carry. A first project with manageable work is easier to evaluate than a building with an unresolved structural scope. Our beginner guide explains the application process.
Experienced sponsors should include prior settlement statements and completed-project details. That documentation helps support execution ability and may support higher leverage or a valuation exception on a qualified file. It does not remove the ARV cap or make approval automatic. If you have concurrent projects, show the remaining costs and commitments on each so the same cash is not counted twice.
What makes a Chicago two-flat or three-flat different?
In Bridgeport, Avondale and Albany Park, evaluate the whole building, including shared heat, electric service, masonry, roof, porches and access to each unit. An occupied unit changes the contractor’s sequence and available access; a vacant building needs an insurance and utility plan during construction.
In Pilsen or Logan Square, a storefront with apartments above needs a mixed-use financing review. Do not describe it as a residential three-flat simply because the upper floors are apartments. Legal use, commercial tenancy and the proposed exit determine the financing path.
For every address, check these items before finalizing the scope:
- Search the City’s building permit and inspection records and reconcile the results with the property’s current condition.
- Track pending work through the City’s permit application status service. A lender inspection does not replace municipal approval.
- Review the Cook County Property Tax Portal and confirm the tax assumptions for your ownership and intended use. Do not simply carry forward a seller’s exemption-adjusted bill.
- Obtain a title and settlement estimate specific to the purchase, municipality and exit. Keep taxes, transfer charges, commissions and lender fees as separate lines.
The two-flat and three-flat guide, permit guide and RLTO guide provide additional questions to work through with your project team. Confirm the rules for the actual municipality and occupancy; a suburban address is not a substitute for that review.
Rehab draws and the first payment cycle
Rehab funds are held back and released against approved work. Before closing, match the contractor’s payment schedule to the lender’s draw milestones. You may need cash to complete the first milestone before reimbursement, even when the loan covers the full approved rehab budget.
Submit the requested photos, invoices, line-item amounts and lien documentation. Arrange inspection access and obtain written approval for scope changes. Confirm the inspection fee, expected turnaround after a complete request and draw contact in writing. The draw-process guide explains the sequence; your loan agreement controls your file.
Chicago metro coverage and next steps
We serve Chicago and suburban Cook County plus DuPage, Lake, Will, Kane and McHenry. Compare each property’s sold and rental evidence on its own merits instead of carrying a Chicago neighborhood assumption into a suburban acquisition.
Choose fix-and-flip financing for rehab and resale, bridge financing for an acquisition gap, DSCR financing for a qualifying rental exit, or new construction for ground-up work. Room-rental projects have a separate Chicago PadSplit guide.
Our Chicago lender comparison helps you compare provider terms. For an initial review, send the address, contract or proposed price, property photos, scope, comparable sales, intended exit and available liquidity.
Price screening and a delayed exit
The common “70% rule” estimates a purchase ceiling using 70% of ARV minus rehab. It is a screening shortcut, not our underwriting formula, and it does not replace a full budget. Compare actual loan limits, financing costs, selling costs and your target profit in the fix-and-flip calculator.
Model a delayed completion and sale before closing. An extension requires review, and fees, minimum interest and conditions depend on your loan documents. Contact the loan team before maturity with an updated scope, schedule, liquidity and exit.
Ready to review a Chicago property? Submit your scenario or call (833) 264-7776. Rates, terms and conditions are subject to qualification and change; closing timing begins after borrower conditions are satisfied.