ServicesHard Money Loans
Hard Money Loans in Pflugerville
Hard money loans are short-term financing for investors who need to buy and rehab a property fast. We look at the deal, the rehab budget and how you plan to pay it off. Then we stay in touch through the work, not just until closing.
When a Hard Money Loan Makes Sense
A hard money loan is built for investment property. The lender leans more on the value of the property and your plan than on tax returns and a long credit file. That is why it can move faster than a bank loan, and why it costs more. Most run 6 to 18 months.
It fits a few situations well. A house needs too much work to pass a conventional appraisal. A seller wants a quick closing. You want to buy, rehab and sell, or buy, rehab and refinance into a long-term loan. If you plan to live in the property, a hard money loan is usually the wrong tool, and we will point you to our Conventional Loans or FHA Loans pages instead.
We have 11 years in the mortgage industry, and the deals that go well all have one thing in common. The borrower knew how the loan would end before it started. So we talk about your exit first.
What You Get With Our Hard Money Loans
- 01
A Deal Review Before Paperwork
We go through the purchase price, the rehab scope and the value you can expect once the rehab is finished. When the numbers leave little room for profit, we say so up front, before any money goes to a valuation.
- 02
Purchase and Rehab Funds
Many loans cover a share of the purchase and a share of the rehab budget. The rehab money comes out in draws as each stage is done, not in one lump at closing.
- 03
A Written Term Sheet
The rate, points, fees, term and extension terms are put in writing for you. Nothing appears at the closing table that we did not go over first.
- 04
Help With the Draw Process
We walk you through how to request a draw, what the inspector looks for and what holds a draw up. Clear photos and receipts keep money flowing to your crew.
- 05
Check-Ins Until Payoff
After closing we call to ask how the rehab is going and how the schedule lines up with the loan term. If you plan to refinance out, we start that talk early.
Questions about Hard Money Loans?
Call(512) 515-9091Signs a Hard Money Loan Fits Your Deal
The House Will Not Appraise As-Is
Roof gone, no working kitchen, foundation work needed. Banks often pass on these. A hard money lender looks at the after-rehab value.
The Seller Wants a Fast Close
Cash-like speed can win an offer. A regular loan with a full underwrite may take longer than the seller will wait.
Your Income Is Hard to Document
If your tax returns do not show what you really earn, the property and your plan can carry more of the decision. For a long-term loan in that case, see Bank Statement Loans.
You Have a Clear Exit
You plan to sell after the rehab, or refinance into a long-term loan once the property is rented. A loan with an end date needs a plan with one too.
How a Hard Money Loan Works With Us
- 1
Call for Pre-Qualification
Tell us the address, the price, the rehab budget and your exit. We give you a straight answer on whether the deal fits and rough terms by phone.
- 2
Property and Plan Review
We order a valuation that looks at as-is and after-rehab value. You send the scope of work and your experience with past projects, if any.
- 3
Term Sheet and Closing
You get the terms in writing, then we close through a title company. The purchase funds go out at closing and the rehab funds sit ready for draws.
- 4
Draws During the Rehab
As each stage gets done, you request a draw. An inspector confirms the work and the money is released.
- 5
Follow-Up and Payoff
We check in during the work and again as the end of the term gets close. We walk you through payoff, extension options or a refinance so the loan ends on your schedule.
What Moves the Cost of a Hard Money Loan
A short-term loan on a property in the middle of a rehab carries more risk, so it is priced higher than a regular home loan. What you pay comes down to the rate, the points due at closing and a handful of fees. Call us and we will give you rate quotes on your real deal, not a number pulled from a chart.
- How Much You Borrow
- The more of the purchase and rehab the lender covers, the more risk it takes on. Bringing more of your own cash to the deal usually gets you better terms.
- Your Track Record
- Investors who have finished flips or run rentals often see lower rates and fewer points. A first-time investor can still qualify, but the terms will likely be tighter.
- Property Condition and Scope
- Paint, floors and fixtures are a smaller risk than a gut job with structural work. A bigger scope means your budget gets a closer look.
- Term and Extensions
- A longer term costs more, and so does paying to extend. Setting an honest timeline at the start is cheaper than buying extra months at the end.
Hard Money Loan Questions
How fast can a hard money loan close?
Usually quicker than a bank loan, but the date depends on the valuation, the title work and how fast you send your scope and documents. Once we see the deal, we will give you a realistic closing date. We will not promise one we cannot hit.
Can I use a hard money loan for a place I will live in?
Generally no. These loans are made for properties you plan to sell or rent out. If you are moving in, a conventional, FHA, VA or USDA loan will cost you much less, and we handle those as well.
Do you check credit?
Yes, but it counts for less than on a standard home loan. The property, your down payment and your exit plan carry more weight. Recent foreclosures or open judgments can still get in the way, so bring them up on the first call.
What happens if the rehab runs long?
Call us the moment you see the schedule slipping. Many loans allow an extension for a fee, and the sooner we know, the more choices you have. That is the reason we check in during the work instead of waiting for the term to run out.
Is the lender regulated?
Yes. We have been NMLS licensed for 10 years. Ask us anything about how the loan is set up before you sign.
How do I get out of a hard money loan?
There are two common ways out. You put the property on the market once the work is done, or you rent it and move the balance into a long-term mortgage. If the second path is your plan, we check those numbers up front so they still hold when the term ends. If you need to buy before you sell, our Bridge Loans page covers a different tool that may fit better.
Talk Through Your Next Deal
Bring the address, the price and your rehab numbers. We will tell you plainly whether it works and what the loan would look like, then stay with you until it is paid off.