Hard Money
Hard Money Loans & Foreclosure Bailouts: How to Move Fast When the Clock Is Running
Hard money is not a product for every deal - it is a product for deals where time and certainty are worth more than the lowest possible cost. Here is how it fits, and how a foreclosure bailout works.
What hard money covers
- Time-sensitive purchases where a bank cannot make the deadline
- Cash-out refinancing to access equity for the next opportunity
- Foreclosure bailouts - paying off existing debt before a sale date
- Bankruptcy exits and debtor-in-possession (DIP) financing
- Note-on-note financing against a mortgage note you hold
- HOA and condo association loans for repairs, capital improvements and insurance costs
The numbers that matter
| Loan amount | $50,000 to $2,000,000+ per property |
| Minimum property value | $250,000 as-is |
| Maximum LTV | Up to 65% of value |
| Terms | 6 months to 5 years |
| Typical close | 3 to 5 days from receipt of documents |
| Coverage | 38 states - not available in AK, AZ, CA, HI, ID, MN, ND, NV, OR, SD, UT, VT |
What lenders look at
- The as-is value and the equity position
- The exit - sale, refinance or stabilization
- Property type and condition: residential-investment and commercial qualify; ground-up construction, land and heavy rehab generally do not
- The timeline - especially in foreclosure situations, where the sale date sets the clock
How a foreclosure bailout works
- Send the notice or sale date, the payoff and the property details
- We evaluate the refinancing options against the deadline - quickly
- If the numbers support it, the new loan pays off the existing debt and stops the sale
- The short-term structure is later refinanced into permanent financing when the property is stable
In distressed situations the deadline decides everything. The earlier the numbers are on the table, the more options survive.
Send the deal and the timeline and we will tell you quickly whether hard money fits - and what it takes to close.
Frequently asked questions
How fast can a hard money loan close?
As little as 3 to 5 days from receipt of documents on clean files.
Do hard money programs check credit?
Credit requirements vary by private lender and program. Many weigh the property and the deal heavily, but there is no single score cutoff.
Can hard money stop a foreclosure?
Where the equity and the numbers support it, a bailout refinance pays off the delinquent debt before the sale date. Timing is the critical variable.
What does hard money cost?
Pricing depends on the deal, the lender and the exit, and is quoted per transaction. Ask for the terms and fees in writing before you commit.
What property types qualify?
1-4 unit investment residential, multifamily, mixed-use, retail, office, light industrial, gas stations, car washes, low-leverage hospitality and more. Not ground-up construction, land, development or heavy rehab.