Updated Rates as of August 2026
At hard money maturity you must pay off the loan, extend, or refinance. Most fix-and-flip notes mature at 6–12 months. If the property has not sold, request an extension (fee + possible rate bump) or bridge to DSCR if stabilized.
Plan your exit 60 days before maturity. Hard money maturity refinance
Maturity options — rank by investor preference
| Option | When it works | Cost |
|---|---|---|
| Sell property | Flip complete | Sale costs 8%–10% |
| DSCR refi | Stabilized rent | 5.75%–10.5% permanent |
| Extension | Rehab 80% done, 60–90 days needed | 0.5%–1% fee + IO |
| New bridge | BRRRR step 2 on new asset | New points |
Plan your exit before close — hard money at 8.99%–13.5% is 6–12 month paper, not a 30-year hold.
Extension negotiation checklist
- Request extension 30 days before maturity — not day of
- Show progress photos + draw history
- Provide updated ARV comps if market shifted
- Confirm buyer or refi path with dates
- Budget rate step (+0.25%–0.75%) if in term sheet
Hard money to DSCR refinance · loan process · fix and flip calculator
Forced sale vs refi — math at maturity
Scenario: $310K UPB at maturity, ARV $420K, 8 months rehab done
| Exit | Proceeds | Notes |
|---|---|---|
| Sale at $405K | ~$405K − $310K − 8% costs | ~$63K net before carry |
| DSCR refi at 75% LTV | $315K loan − $310K payoff | ~$5K cash + keep asset |
| Extension 3 mo | +$9K IO + 1% fee | Buys time for buyer |
Start refi or listing 60 days before maturity — not week of.
Multiple extensions — lender limits
Most notes allow 1–2 extensions maximum. Repeated extensions signal execution risk — Jaken Finance Group prefers sponsors who communicate early. Hard money to DSCR · loan process
Extension negotiation — what to send 90 days out
Lenders extend when the exit is visible, not when the project is silent. Send:
- Updated photos and percent-complete on rehab
- Listing agreement or purchase contract if selling
- DSCR pre-approval letter if refinancing
- Revised scope timeline with contractor letter
Extension fees typically run 0.5%–1% of UPB plus continued IO at 8.99%–13.5%. Most notes cap at two extensions — plan the first one as your last buffer, not your primary exit.
Sale vs DSCR refi at the maturity cliff
If ARV supports it, DSCR refi at 75%–80% LTV keeps the asset and pays off hard money without a realtor commission. If spread after 8% sale costs beats refi math, list 60 days before maturity so closing aligns with note payoff. Hard money to DSCR · maturity defaults · DSCR timeline · loan process
Maturity calendar — 90-day countdown
| Days before maturity | Action |
|---|---|
| 90 | Confirm exit path — sale, DSCR refi, or extension |
| 60 | Order DSCR appraisal or list with agent |
| 45 | Submit refi application if leasing complete |
| 30 | Request extension if rehab behind schedule |
| 14 | Wire payoff quote or confirm refi clear-to-close |
| 0 | Payoff or default |
Hard money at 8.99%–13.5% IO runs 6–12 months — sponsors who start planning at day 270 of a 360-day note avoid panic extensions.
Worked example — Charlotte BRRRR maturity decision
| Metric | Value |
|---|---|
| Hard money UPB at maturity | $298,000 |
| ARV (appraisal) | $395,000 |
| Stabilized rent | $2,650/mo (duplex, both units leased) |
| DSCR refi at 75% LTV | $296,250 loan at 5.75%–10.5% |
| Payoff gap | ~$1,750 + closing costs |
| Sale alternative at $385K | ~$385K − $298K − 8% costs = ~$56K net |
Refi keeps the asset and $650/mo cash flow after PITIA. Sale nets more cash today but forfeits the income stream. Sponsor chose DSCR refi — closed in ~14 business days before maturity.
Extension vs refi vs sale — decision tree
Extend when: rehab is 85%+ complete, buyer is under contract, or DSCR refi is 30 days out. Budget 0.5%–1% extension fee plus continued IO.
Refi to DSCR when: property is leased, DSCR ≥ 1.0, and you want long-term hold at 5.75%–10.5%.
Sell when: ARV margin after 8% sale costs exceeds refi math, or local market is softening.
Walk / deed in lieu when: UPB exceeds net sale proceeds — rare on well-underwritten flips, more common on over-leveraged ground-up builds.
State nuance — foreclosure pressure at maturity
Georgia and Texas (non-judicial) move faster after default — maturity miss can trigger notice of default within 30 days.
Illinois and Florida (judicial) give more runway, but legal cost accumulates. Extension at 8.99%–13.5% IO beats attorney fees in every state.
Communicate with your lender at 60 days out, not at maturity. Jaken Finance Group prefers visible exit plans over silent sponsors.
Partial payoff at maturity — buying time without full extension
If you have $40K liquidity but need $310K payoff:
| Strategy | How | Lender view |
|---|---|---|
| Partial paydown $40K | Reduces UPB — may qualify for short extension | Shows good faith |
| Pay 3 months IO upfront | Buys 90 days | Common workout |
| Release one property from cross-collateral | If portfolio loan | Partial exit |
Partial paydown does not replace extension fee on most notes — but reduces IO during extension period.
DSCR rate lock during hard money extension
If DSCR refi is 30 days out but hard money matures in 14 days:
- Lock DSCR rate at application — typically 30–45 day lock
- Request hard money extension to align with DSCR close
- Pay extension fee — cheaper than default + NOD
DSCR at 5.75%–10.5% — losing rate lock during hard money extension can cost 0.25%–0.50% on 30-year hold.
Seasonal sale timing at maturity — spring vs winter
| List date | Typical DOM | Maturity strategy |
|---|---|---|
| March–June | Shortest | List 60 days before maturity |
| Nov–Jan | Longest | Extend hard money or price aggressively |
| Holiday week | Dead market | Never maturity without extension |
Flip that matures December 15 with no buyer should request extension in October — not December 10.
Second extension — lender psychology
| Extension # | Lender expectation | Sponsor must show |
|---|---|---|
| First | Rehab delay, weather | Photos + revised timeline |
| Second | Buyer fell through | New contract or price reduction |
| Third | Rarely granted | Full payoff or deed in lieu |
Plan one extension as backup — not primary exit. Two extensions signal execution risk on future files.
Worked example — maturity miss by 8 days
| Event | Cost |
|---|---|
| UPB | $252,000 |
| Maturity date | Jan 15 |
| Actual payoff | Jan 23 (8 days late) |
| Default interest (if in note) | +2% on UPB = ~$110 extra |
| Extension not requested | Possible NOD filing |
| Avoidable cost | Request extension Jan 1 — fee $2,520 (1%) vs legal |
Eight days late without communication can trigger default interest and NOD — $2,500 extension fee is cheaper.
Hard money maturity vs DSCR close — align the dates
| Hard money maturity | DSCR app submitted | Gap risk |
|---|---|---|
| Day 360 | Day 330 | 14-day DSCR close fits |
| Day 360 | Day 350 | Need extension |
| Day 180 | Day 120 | Comfortable buffer |
Submit DSCR refi 45 days before hard money maturity on ~14 business day DSCR targets at 5.75%–10.5%.
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