Hard Money Loans
Get the financing you need — whether flipping properties, investing in rentals, or bridging the gap between buying and selling a home — with hard money loans. Griffin Funding specializes in offering tailored financing solutions to empower investors, homeowners, and developers alike to seize opportunities and achieve their goals.
- Fast funding timelines
- Flexible qualification
- Short-term financing
- Investor-friendly mortgage
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Benefits
Benefits of Hard Money Loans
Get funding fast:
Hard money loans offer fast approval and funding timelines so you can capitalize on time-sensitive opportunities.
Flexible terms:
Hard money loan lenders offer flexible terms and underwriting criteria. In some cases, a traditional appraisal is not required.
Secured by the property:
Hard money loans are collateral-based loans, so approval doesn’t rely solely on your income or credit score.
Customization:
Hard money loan lenders can offer personalized financing solutions tailored to investors’ specific needs.
Investment opportunities:
These loans enable investors to leverage their existing assets and expand their real estate portfolios.
How it Works
What Is a Hard Money Loan?
A hard money loan, also known as a private money loan, is a type of non-QM mortgage provided by individual investors or private companies rather than banks. With this type of financing, the property serves as collateral, just like with any other home loan, and can also be cross collateralized with other properties that you own.
Instead of going through a lengthy approval process, borrowers can quickly access funds from private lenders who evaluate the investment potential of a property instead of prioritizing the borrower’s personal income or creditworthiness.
Common uses for hard money loans include:
- Purchasing distressed properties
- Financing renovations or repairs
- Acquiring properties with quick closing timelines
- Construction loans where funds are needed to complete the project
- Accessing financing when unable to meet traditional and/or non-QM loan requirements
- Covering costs while selling a property to buy another property
- Residential apartment complexes
- Getting second mortgages over $500,000
Key Features of Hard Money Loans
- Short-term loans
- Fast funding
- Investor-focused financing
- Flexible eligibility guidelines
- Limited documentation requirements
- Less emphasis on credit score
Our Private Money Loan Programs
A bridge loan is a type of short-term equity-based loan for homeowners and real estate investors who need a quick close or influx of cash while waiting on another property to sell. We offer bridge loans with 0 to 24 month terms.
Fix-and-flip loans are a type of mortgage loan that real estate investors can use to purchase properties, repair and renovate them, and sell for a profit.
Hard money construction loans can help builders and investors cover short-term construction costs on an existing project where permits are in place. We offer construction loans with 6 to 12 month terms.
A rescue purchase loan can provide homebuyers and investors with capital to follow through on a purchase in case their source of funding falls through or pulls out of a deal. We offer rescue purchase loans with 0 to 6 month terms.
A rescue refinance enables homeowners and investors to turn their trapped equity into cash in a matter of days by paying off and refinancing their current loan and obtaining additional cash. We offer rescue refinance loans with 0 to 6 month terms.
A long-term purchase loan can help investors improve cash-flow in the short-term while offering a longer repayment period. We offer long-term private money purchase loans up to 30-year fixed.
A long-term refinance loan allows investors to quickly restructure their current loan terms and rates. We offer long-term private money refinance loans up to 30-year fixed.
A purchase or cash-out refinance option ideal for real estate investors seeking cashout or lower payments on a long-term, fixed-rate loan with no balloon payment. No cashflow or minimum rental income is required. Up to 75% LTV and loan amounts as high as $5 million available.
A purchase or cash-out refinance option ideal for real estate investors with derogatory credit issues and high equity seeking quick and easy credit qualification. No minimum credit score is required. Up to 50% LTV and loan amounts as high as $5 million available.
Our hard money probate loan product is designed for situations where funds are needed to settle an estate or when an heir is considering purchasing the property from the estate.
Securing direct financing for a land purchase presents its own challenges, including large down payments and lengthy processing times. Our land loan program enables borrowers to lower their down payment by instead using a hard money cross-collateralization on a single-family home or one to four properties, and close quickly.
A hard money reverse mortgage buyout loan is utilized when heirs to a property choose not to sell. Unfortunately, many lenders do not allow non-owners or those not making mortgage payments to refinance and stay in the home.
A hard money 1031 exchange or reverse exchange loan enables investors to ensure a timely close on the purchase of a replacement property while awaiting the sale of the relinquished property, without the delays associated with traditional financing. This strategy can help avoid incurring significant tax implications.
Where We Lend
Griffin Funding offers private money loans across the country. Available private money loan programs may vary by state.
Frequently Asked Questions
Private money loans are often quicker and more flexible than traditional bank loans. While banks may have rigid qualification criteria and take weeks or even months to approve a loan, private money lenders can provide fast approvals and customized loan terms based on the value of the property, rather than just the borrower’s creditworthiness.
The potential downsides of private money loans include:
- Higher interest rates: Private money loans often come with higher interest rates than other types of mortgage loans, increasing the overall cost of borrowing.
- Shorter loan terms: With shorter repayment terms, private money loans require borrowers to either sell the property or refinance the loan within a shorter time frame, which may add pressure to the investment timeline.
- Upfront costs: These loans may involve higher upfront costs, including origination fees, points, and other closing costs, which can impact the profitability of the investment.
Hard money loans often come with higher interest rates than traditional bank loans. The exact rate can vary depending on factors like the loan amount, property type, and the borrower’s equity. Contact our team today to discuss your financing options.
Consider these investment property loan alternatives for financing your next project or investment:
- DSCR loans: Debt service coverage ratio (DSCR) loans focus on the property’s income potential rather than a borrower’s creditworthiness. They typically require a solid rental income stream to cover mortgage payments and operating expenses.
- Cash-out refinance: Cash-out refinancing replaces an existing mortgage loan with a new one at a higher principal balance, allowing investors to access the equity built up in the property. You can use this option to leverage your investments without the high-interest rates and short terms associated with hard money loans.
- Home equity line of credit (HELOC): A HELOC is a revolving line of credit secured by the property’s equity. This flexible financing option allows borrowers to access funds as needed, making it best suited for real estate investors who require ongoing access to capital for various projects. Fixed-rate home equity lines of credit are also available.
- Residential Transition Loans (RTL): RTL financing is for experienced real estate investors and can offer better terms than hard money loans.
Choose Griffin Funding as your trusted hard money lender for a seamless lending experience backed by expertise, reliability, and commitment to client satisfaction. With extensive experience in non-QM loans and private money loans, Griffin Funding specializes in providing tailored financing solutions for borrowers who may not meet traditional lending criteria.
We not only help you obtain private money financing but also monitor your loan to help you convert it into a traditional or non-QM loan with better terms when the time is right.
Private money loans can be used for a wide variety of property types, including single-family homes, multi-family units, and commercial real estate.
Private money loans can be used for a variety of commercial real estate projects, including office buildings, multi-family properties, and retail spaces. Whether you’re purchasing, renovating, or refinancing properties, we can provide the commercial real estate loans to help you succeed.
Yes, private money loans can be used to purchase land, though terms may differ from loans for developed properties. Private money land loans generally have higher down payment requirements and shorter terms due to the increased risk for lenders. These loans are useful for developers looking to buy land quickly for future construction projects.
When using a private money loan for a land purchase, lenders will evaluate factors like location, zoning, development potential, and your exit strategy. Having a clear plan for the land (whether development or resale) will strengthen your application for land acquisition financing.
Anyone can qualify for a hard money loan, even if they’re self-employed. Unlike traditional lenders who require extensive income documentation, private money lenders focus more on the property’s value and investment potential.
Griffin Funding offers programs like the No FICO Investor 1-4 Unit loan that requires no minimum credit score and evaluates deals based primarily on how much the property is worth compared to the loan amount rather than your personal income. This option makes private money lending accessible for entrepreneurs, freelancers, and business owners with non-traditional income streams.
Yes, hard money loans can be used for refinancing existing properties. They serve as an ideal option for those who may not qualify for traditional refinancing or who need to restructure their financing quickly.
Griffin Funding offers a variety of refinance mortgage options such as rate-and-term refinance loans and cash-out refinance loans, available for both short-term and long-term needs. Contact one of our specialists to learn more about your options.
Yes, Griffin Funding offers hard money construction loans to help builders and investors cover short-term construction costs on existing projects. These construction loans are available with 6 to 12 month terms.
With a hard money construction loan, you can complete projects when traditional financing isn’t available or when you need funding quickly to keep construction moving forward.
Yes, fix-and-flip projects are one of the primary uses for private money loans. These loans provide the quick funding needed to purchase distressed properties, complete renovations, and resell for profit within a short timeframe. The expedited approval process allows investors to move quickly on opportunities in competitive markets.
One of the major advantages of hard money loans is their speed. Approval and funding can happen within a few days, compared to the weeks or months that traditional lenders may take. This makes hard money loans an ideal solution for time-sensitive real estate deals such as auctions or quick property flips.
If you need to extend your loan term, you’ll typically need to contact your lender to discuss options. Griffin Funding works with borrowers to find solutions when projects take longer than expected. When appropriate, we can help transition your private money loan into a traditional or non-QM loan with better terms.
Some lenders may offer formal extension options for an additional fee, while others might require refinancing into a new loan. It’s important to discuss potential extension scenarios before finalizing your loan to understand what flexibility exists and what additional costs might be involved.
Hard money loans typically come with higher upfront costs than traditional financing options.
These may include:
- Origination fees
- Points (prepaid interest)
- Property insurance
- Various closing costs
Due to the expedited nature and higher risk of these loans, expect to pay premium rates compared to conventional financing. Always factor these higher upfront costs into your investment calculations to ensure your project remains profitable despite the increased expense of private financing.