Updated Rates as of August 2026
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 the fix-and-flip query specifically — what moves a quote, points vs. rate, and market context — see fix and flip loan rates.
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
| Product | Rate range | Structure | Typical term |
|---|---|---|---|
| Fix and flip / hard money | 8.99%–13.5% | Interest-only | 6–12 months |
| Bridge loans | 8.99%–13.5% | Interest-only | 12–24 months |
| DSCR rental | 5.75%–10.5% | Fixed or ARM | 30-year |
| New construction | 8.99%–13.5% | Interest-only | 12–18 months |
| Equipment loans | 6%–14% | Amortizing | 2–7 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
| Factor | Hard money (fix/flip) | Traditional investment mortgage |
|---|---|---|
| Typical rate | 8.99%–13.5% | 7.28% average 30-year fixed, week ending Oct. 1, 2026 |
| Payment | Interest-only | Amortizing P&I |
| Points | 0–3 | 0–1 |
| Close speed | 7–10 business days | 30–45 days |
| Qualification | ARV, LTC, exit | W-2, DTI, credit, property condition |
| Property condition | Distressed OK | Must meet livability standards |
| Best use | Flip, bridge, value-add | Long-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:
| Phase | What you pay | When |
|---|---|---|
| Closing | Origination points (0–3) + down payment + prepaid interest | At funding |
| Monthly | Interest-only on outstanding balance | Each month during term |
| Rehab draws | Interest accrues on funded balance only | As draws release |
| Payoff | Remaining principal + accrued interest | At sale, DSCR refi, or term end |
| Extension | Extension fee + continued IO if past initial term | If rehab or sale delays |
Monthly carry examples (interest-only)
| Loan amount | Rate | Monthly IO payment |
|---|---|---|
| $200,000 | 10% | ~$1,667 |
| $300,000 | 11% | ~$2,750 |
| $300,000 | 13% | ~$3,250 |
| $450,000 | 12% | ~$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 band | Typical rate impact | Who qualifies |
|---|---|---|
| 65%–70% LTV / LTARV | Lower tier (9%–10.5%) | Conservative ARV, strong reserves |
| Up to 75% LTARV | Mid tier (10.5%–12%) | Standard experienced sponsor |
| 85%–100% LTC | Upper tier (12%–13.5%) | Qualified file, still capped at 75% ARV |
See loan-to-value ratio in hard money lending for how LTV caps affect pricing on your file.
Leverage bands (paired with rates)
| Product | Typical leverage |
|---|---|
| Fix and flip | Up to 100% LTC on qualified files, capped at 75% ARV |
| Bridge | Up to 90% purchase |
| DSCR purchase | Up to 85% (select markets, qualified borrowers) |
| DSCR rate-and-term | Up to 85% (select markets, qualified borrowers) |
| DSCR cash-out | Up to 80% (select markets, qualified borrowers) |
| Construction | Up to 100% LTC on qualified files |
How benchmark rates sit under a 2026 hard-money quote
The average 30-year fixed mortgage was 7.28% for the week ending October 1, 2026. That is the Freddie Mac survey on FRED series MORTGAGE30US. The table above uses that week as the conventional comparison. It is an owner-occupant average. It is not a quote on a distressed rental, and it is not the rate on a Jaken Finance Group bridge.
The effective federal funds rate was 3.88% on October 5, 2026, the daily reading on FRED series DFF. Fix-and-flip and bridge pricing of 8.99%–13.5% sits well above that policy rate. The gap pays for speed, for collateral a bank will not take, and for a loan that is interest-only with a balloon. Private lenders do not reset your note each time the funds rate moves a tenth of a point. They do reprice new quotes when their own cost of money and the loss history on flips change.
For a flip, the number that matters is monthly carry, not the funds rate headline. A complete fix-and-flip or bridge file closes in 7–10 business days. A DSCR rental loan closes in about 14 business days. Using the shorter clock on a rental file will miss the appraisal and the lease review.
Illustration: the two ends of the published band
Illustration only. Not a rate lock.
Take a $275,000 interest-only balance and hold it for six months.
| Rate | Monthly interest | Six-month carry |
|---|---|---|
| 8.99% | $2,060 | $12,360 |
| 13.5% | $3,094 | $18,564 |
| Difference | $1,034 | $6,204 |
Monthly interest is the balance times the annual rate, divided by 12. The six-month column is six times that payment. Moving from the bottom of the published band to the top costs about $6,200 on this balance over a short rehab. Points, extension fees, and taxes sit on top. That is why a lower rate with a slow close can lose to a higher rate that gets the house listed on time.
Ask which inputs moved you toward 13.5%: leverage, a thin spread to after-repair value, a first-time scope, or a rural comp set. Repeat sponsors with documented exits often price lower in the same 8.99%–13.5% band. The quote is still per file. There is no public grid that replaces the term sheet.
What to send before you ask for a number
- Address, purchase contract or asking price, and rehab budget by line item.
- Three sold comps and your after-repair value, with concessions noted.
- Exit: resale, bridge to a DSCR loan, or a sale to another investor.
- How much cash you will have left after closing, in dollars, not a percentage.
- Entity name if title will vest in a company.
Pre-qualify online with those five items. Or call (833) 264-7776. On a complete file, leverage and a rate band usually come back within one business day. The band will fall inside 8.99%–13.5% for fix-and-flip, bridge, and new construction, or inside 5.75%–10.5% for DSCR. Equipment loans, at 6%–14%, are a different product and should not be compared with these real-estate rates.
One point versus a higher note rate
Points are prepaid interest in disguise, but they are not the same cash event as the monthly bill. On the $275,000 illustration above, one point is $2,750 paid at closing. The gap between 8.99% and 13.5% over six months was about $6,204. Two points, $5,500, still cost less than living at the top of the band for that whole rehab, if you actually exit in six months.
Stretch the hold and the comparison flips. The point is paid once. The rate is paid every month the balance is outstanding. A nine-month hold at the high end costs about 1.5 times the six-month gap, or about $9,300, while two points stay $5,500. Run your own month count. Do not borrow a rule of thumb from a different loan size.
Origination on these files is discussed as 0–3 points, disclosed on the term sheet before processing. There is no separate unpublished point grid. If a quote shows points at the top of that range and a rate at the top of 8.99%–13.5%, ask what would have to change, usually leverage or the after-repair spread, to move one of them down.
Do not price a rental on the flip band
A stabilized rental is not a six-month note. DSCR loans price at 5.75%–10.5%, fixed or adjustable, on a 30-year term. They close in about 14 business days. Fix-and-flip and bridge close in 7–10 business days and stay interest-only inside 8.99%–13.5%.
Using the flip rate to test a five-year hold will make a good rental look impossible. Using the DSCR rate to test a house with no kitchen will make a flip look cheaper than any lender will fund. Match the product to the exit, then match the clock. The conventional 7.28% average from the October 1, 2026 week is a third number. It describes agency 30-year mortgages. It does not fund a foundation repair.
A one-page read of the term sheet
When the quote arrives, check six lines before you celebrate the rate:
- Rate, and whether it is fixed for the whole term
- Points, in dollars, not only in a percentage
- LTC and the ARV cap, and which one binds
- Term in months, and what an extension costs if it is stated
- Holdback rules: interest on the funded balance, or on the full commitment
- Exit the lender underwrote: sale, or a refinance
If interest accrues only on drawn rehab funds, a slow draw schedule lowers carry. It also means the budget must be real, because a draw that never gets approved does not build the ARV you used. Call (833) 264-7776 if two of those six lines are blank. A rate without the cap and the term is not a quote.
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:
- Pre-qualify online — submit address, numbers, and timeline
- Call (833) 264-7776 — speak with the lending team
- 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.