Hard money is short-term, asset-based real estate financing secured by the property — not your W-2 income or tax returns. Real estate investors use hard money to acquire, renovate, bridge, or exit deals faster than conventional banks allow.
How hard money works
Hard money lenders underwrite to collateral and exit strategy — after-repair value (ARV), loan-to-cost (LTC), scope of work, and how you plan to sell or refinance. Credit-flexible programs are available on select files; approval is collateral-first, not FICO-driven.
Typical structure:
| Feature | Hard money (2026) |
|---|---|
| Interest rate | 9%–13.5% (interest-only) |
| Term | 6–12 months (extensions available) |
| LTC | Up to 90% on qualified fix-and-flip files |
| ARV cap | Up to 75% after-repair value |
| Close speed | 7–10 business days with complete file |
Compare products: DSCR vs hard money vs conventional · hard money loan statistics 2026 · interest rates hub.
When investors use hard money
- Fix-and-flip — acquire distressed property, fund rehab draws, sell at ARV
- Bridge financing — short hold between acquisition and permanent DSCR refi or sale
- Auction and off-market acquisitions — close before conventional buyers can qualify
- Entity-vested deals — finance in your LLC without personal income documentation
Hard money is not a 30-year mortgage replacement. It is transaction-scoped capital for investors who need speed and asset-based underwriting.
Hard money vs. conventional financing
| Hard money | Conventional investment loan | |
|---|---|---|
| Underwriting focus | ARV, LTC, exit | W-2, tax returns, DTI |
| Close timeline | 7–10 business days | 30–45+ days |
| Rate (2026) | 9%–13.5% IO | ~6.5%–7.5% amortizing |
| Best for | Value-add, bridge, flip | Long-term stabilized hold |
For permanent rental debt after stabilization, investors transition to DSCR loans at 7.5%–10.5%.
Nationwide hard money at Jaken Finance Group
Jaken Finance Group funds non-owner-occupied investment property in all 50 states from our Hoffman Estates, Illinois headquarters. Programs include:
- Fix-and-flip and heavy rehab with milestone draws
- Bridge and gap financing before sale or refi
- DSCR transitions for long-term rental holds
- Commercial and mixed-use where cash flow supports the stack
Pre-Qualify · What is a hard money loan · Submit flip scenario · (833) 264-7776
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. All loans are subject to asset-based underwriting. Jaken Finance Group only finances non-owner occupied investment properties.
Click Here to Review our Privacy Policy and Click Here to Review our Terms of Service
Click Here to Read our FAQs
Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196