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Hard Money Loan Rates (2026) — Current Ranges & Repayment

How interest rates affect real estate investing and loan costs — and strategies investors use to win in any rate environment. Read the JFG guide.

Hard money loan rates in 2026 typically run 8.99%–13.5% interest-only on fix-and-flip and bridge products — higher than conventional investment mortgages, but priced for speed, distressed collateral, and asset-based underwriting. Jaken Finance Group quotes rates on your specific file; this page is the single source of truth for published rate bands and repayment structure.

For program parameters, see Lending programs overview. For hard money vs. bank financing tradeoffs, see Hard money vs. traditional loans.

Current hard money rate ranges by product

ProductRate rangeStructureTypical term
Fix and flip / hard money8.99%–13.5%Interest-only6–12 months
Bridge loans8.99%–13.5%Interest-only12–24 months
DSCR rental5.75%–10.5%Fixed or ARM30-year
New construction8.99%–13.5%Interest-only12–18 months
Equipment loans6%–14%Amortizing2–7 years

Equipment financing is a distinct business-lending product — not real estate hard money. Do not compare equipment APRs to fix-and-flip bridge rates.

Hard money rates vs. traditional investment loans

FactorHard money (fix/flip)Traditional investment mortgage
Typical rate8.99%–13.5%6.75%–7.5% (30-year fixed)
PaymentInterest-onlyAmortizing P&I
Points0–30–1
Close speed7–14 business days30–45 days
QualificationARV, LTC, exitW-2, DTI, credit, property condition
Property conditionDistressed OKMust meet livability standards
Best useFlip, bridge, value-addLong-term stabilized hold

Hard money costs more per month — but funds deals banks decline or cannot close in time. See the full hard money vs. traditional loans guide for qualification, risks, and when each product wins.

Hard money loan repayment schedule

Most fix-and-flip and bridge hard money follows this structure:

PhaseWhat you payWhen
ClosingOrigination points (0–3) + down payment + prepaid interestAt funding
MonthlyInterest-only on outstanding balanceEach month during term
Rehab drawsInterest accrues on funded balance onlyAs draws release
PayoffRemaining principal + accrued interestAt sale, DSCR refi, or term end
ExtensionExtension fee + continued IO if past initial termIf rehab or sale delays

Monthly carry examples (interest-only)

Loan amountRateMonthly IO payment
$200,00010%~$1,667
$300,00011%~$2,750
$300,00013%~$3,250
$450,00012%~$4,500

Model carry in your scope of work before you sign a term sheet. A $300,000 loan at 13% costs $500/month more than the same loan at 11% — that adds up over a 6-month rehab.

What drives your quoted hard money rate

Private lending rates reflect deal risk and sponsor profile, not W-2 income:

  • Leverage (LTC / LTV) — higher leverage typically means a rate premium
  • ARV margin — thin spreads increase pricing
  • Sponsor experience — repeat borrowers with documented exits often qualify for lower tiers
  • Property type and market — coastal insurance, multifamily, and rural comps affect pricing
  • Hold period and exit — flip vs BRRRR vs DSCR refi paths differ

We pull credit on most files to review trends, but approval is collateral-first — ARV, LTC, scope, liquidity, and exit drive the decision, not a minimum FICO gate.

LTV and hard money pricing

Hard money LTV caps interact directly with rate:

Leverage bandTypical rate impactWho qualifies
65%–70% LTV / LTARVLower tier (9%–10.5%)Conservative ARV, strong reserves
75%–80% LTARVMid tier (10.5%–12%)Standard experienced sponsor
85%–90% LTCUpper tier (12%–13.5%)Repeat sponsor, documented exits

See loan-to-value ratio in hard money lending for how LTV caps affect pricing on your file.

Leverage bands (paired with rates)

ProductTypical leverage
Fix and flipUp to 90% LTC; select repeat sponsors up to 100%
BridgeUp to 90% purchase
DSCR purchaseUp to 85% (select markets, qualified borrowers)
DSCR rate-and-termUp to 85% (select markets, qualified borrowers)
DSCR cash-outUp to 80% (select markets, qualified borrowers)
ConstructionUp to 90% of documented construction cost

How Fed policy affects your carry cost

Federal Reserve rate moves change the cost of capital in the broader lending market. For fix-and-flip investors, the practical impact is interest-only carry during rehab. When benchmark rates are elevated, speed to exit matters more than squeezing the last 25 basis points off rate.

Points and fees

Hard money and bridge loans typically include origination points (0–3 points depending on file). Points, extension fees, and minimum interest are disclosed on your term sheet before processing — not hidden at closing.

Get a hard money rate quote on your deal

Rates change with market conditions and file specifics. To get a quote on your property:

  1. Pre-qualify online — submit address, numbers, and timeline
  2. Call (833) 264-7776 — speak with the lending team
  3. Email info@jakenfinancegroup.com — for follow-up on an existing file

We return leverage, rate band, and closing conditions on complete files — usually within one business day.

Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon satisfaction of borrower conditions. Select programs may not require a third-party appraisal. All loans are subject to asset-based underwriting. Jaken Finance Group only finances non-owner occupied investment properties.

Frequently asked questions

What are hard money loan rates in 2026?
Fix and flip and bridge hard money typically runs 8.99%–13.5% interest-only. DSCR rental loans run 5.75%–10.5% fixed or ARM. Exact rate depends on leverage, ARV margin, sponsor experience, and property type — quoted on your term sheet, not a published grid.
Why do hard money rates vary by deal?
Rates reflect LTC, ARV margin, sponsor track record, property type, and hold period. Repeat sponsors with strong exits often qualify for lower tiers. Higher leverage and thin ARV spreads add a rate premium.
What is a typical hard money loan repayment schedule?
Most fix-and-flip and bridge hard money is interest-only monthly with a balloon payoff at sale or refi — typically 6–12 months. Some files include minimum interest (3–6 months). Extension fees apply if you hold past the initial term.
How do Fed rate changes affect hard money pricing?
Private lending rates follow the loanable-funds market and investor return requirements, not the Fed funds rate directly. When benchmark rates rise, bridge carry costs increase — model interest-only payments in your flip pro forma before you lock terms.

Ready to fund your next deal?

Get pre-qualified in minutes. Speak with a lending specialist or start your application online.

Or call (833) 264-7776