Rates and fees for the week ending . This table is updated weekly based on average rates and fees provided by hard money lenders nationwide.
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| Min. Credit | Type | -40% | 40.01-50% | 50.01-55% | 55.01-60% | 60.01-65% | 65.01-75% | 75.01 + |
|---|---|---|---|---|---|---|---|---|
| 800 | Rate | 8.35% | 8.63% | 8.76% | 8.81% | 8.97% | 11.91% | 12.53% |
| Point | 1.45 | 1.50 | 1.75 | 1.91 | 1.99 | 2.65 | 2.95 | |
| 760 | Rate | 8.40% | 8.68% | 8.80% | 8.95% | 9.50% | 11.98% | 12.75% |
| Point | 1.55 | 1.57 | 1.70 | 1.93 | 2.15 | 2.73 | 3.25 | |
| 700 | Rate | 8.50% | 8.69% | 8.84% | 8.96% | 9.65% | 12.14% | 12.87% |
| Point | 1.60 | 1.67 | 1.75 | 1.95 | 2.23 | 2.98 | 3.45 | |
| 680 | Rate | 8.75% | 8.93% | 9.25% | 9.58% | 9.98% | 12.27% | 13.21% |
| Point | 1.75 | 1.83 | 1.84 | 1.95 | 2.50 | 3.25 | 3.75 | |
| 650 | Rate | 8.86% | 9.20% | 9.58% | 9.84% | 10.15% | 12.43% | N/A |
| Point | 1.78 | 1.87 | 1.95 | 2.25 | 2.65 | 3.55 | N/A | |
| 600 | Rate | 9.42% | 9.64% | 9.86% | 10.20% | 10.75% | 12.88% | N/A |
| Point | 2.08 | 2.19 | 2.36 | 2.55 | 2.85 | 3.79 | N/A | |
| 500 | Rate | 9.75% | 9.95% | 10.45% | 11.25% | 11.91% | N/A | N/A |
| Point | 2.20 | 2.45 | 2.50 | 2.87 | 2.95 | N/A | N/A |
In private lending, protective equity is a lender's primary defense mechanism against default. Lower leverage points give the investor a broader safety cushion if the asset faces foreclosure. If you push for maximum leverage (e.g., 75% to 80% LTV), expect lenders to increase your rate and points to balance out the elevated portfolio exposure. Dropping your target down below 50% or 60% LTV instantly unlocks the most competitive rates and can cause other standard underwriting loops to vanish entirely.
Do not assume private funds will back a valuation blindly. Hard money transactions rely on clean valuations from independent, highly trained appraisers and inspectors. Older properties, historically designated landmarks, or buildings showing excessive deferred maintenance will trigger detailed building inspections. If fundamental foundation, roofing, or environmental issues are discovered, lenders will adjust their interest rates upward or scale back the total loan amount immediately.
Lenders apply different underwriting guidelines to different types of properties, and it will directly affect the rate and fees.
Vacant land value depends heavily on its future use. Only about 8% of all hard-money lenders lend on land. Depending on the land's stage of development, use the table below to calculate the impact on your rate and fees:
| Kind of Land | Description | Max LTV | Add to Rate | Add to Point |
|---|---|---|---|---|
| Bare land | No entitlements | 10% - 25% | 2% - 8% | 2 - 8 |
| Partially entitled | Being developed | 20% - 50% | 1% - 4% | 1 - 5 |
| Fully entitled | Permit ready | 45% - 75% | 1% - 3% | 1 - 3 |
Most hard money lenders do not care about your personal income (that's why it is called hard money), but they care about the property income. Inability to verify the property income, or income that is based on some future event, will reduce the amount of money the lender is willing to lend and will increase the rate and fees. To get the best loan, have a 12-month income and expense report, rent roll, and leases ready.
Working a $150K loan takes the same time and effort as working on a $2,000,000 loan. Many hard money lenders shy away from loans under $100K, and those who do will charge a higher rate and more points. On the other hand, loan amounts between $400,000 and $3,000,000 are the sweet spot that 96% of direct hard money lenders love to arrange. Because of stiff competition, you can see lower rates and points for that range.
| Loan Amount Range | Type of Lenders | % of Available Lenders | Rate Adjustment | Point Adjustment |
|---|---|---|---|---|
| Under $75,000 | Local mom & pop | 10% | 1% - 3% | 2 - 6 |
| $75,000 - $200,000 | Local, regional lenders | 40% | 1% - 2% | 1 - 4 |
| $200,000 - $400,000 | Local, regional, national | 75% | 0% - 1% | 0 - 2 |
| $400,000 - $5,000,000 | Local, regional, national | 96% | -0.5% to -1.5% (lower) | 0.5 to 1 lower |
| $5,000,000+ | National | 5% | 0% to -1% | 0 to -1 lower |
Note: The % of available lenders reflects the number of direct lenders. Hard money brokers operate across all ranges.
A property is more than its brick and mortar; it is a legally recorded bundle of title rights. Lenders thoroughly vet who holds corporate or personal ownership, checking for recorded liens, active judgments, restrictive easements, or existing lease structures. Furthermore, location dictates exit liquidity. Properties inside growing, affluent metropolitan areas pull the best pricing tiers due to high demand, while rural or economically stagnant pockets force lenders to raise rates.
While hard money focuses primarily on asset equity, your credit score is still an active variable in the adjustment matrix. A high credit score (720+) highlights operational reliability and accelerates file processing. A low score (under 600) will not trigger an automatic rejection like it would at a conventional bank, but it will slide your file into higher-cost risk tiers, bumping your interest rate and adding points at closing.
Track record is everything for fix-and-flip and ground-up construction projects. If you have successfully completed 5 to 10 verified projects over the last few years, private lenders will fiercely compete for your file with rock-bottom pricing. First-time investors with zero completed track record face tighter leverage ceilings and higher rates while they prove their execution capability.
If you are cash-poor but equity-rich, your existing portfolio can save a transaction. Lenders can seamlessly "blanket" multiple properties together via cross-collateralization. By tying an under-leveraged property you already own to your new purchase, you create additional equity that can eliminate the need for an out-of-pocket cash down payment while securing a better rate tier.
Lenders view standard purchase loans as highly motivated transactions with strong investor alignment. Refinances—particularly cash-out transactions—carry a higher perceived risk, leading to more conservative maximum LTV allowances and slightly elevated pricing.
Hard money is inherently transitional capital. Lenders require a clear, realistic strategy explaining how you intend to pay back the principal within 12 to 24 months. If your exit plan involves a retail home sale or a construction-to-permanent bank refinance backed by an institutional takeout letter, your pricing will be optimized. Unrealistic or vague exit paths will cause rates to spike.
Lenders look far beyond purchase prices in this specialized arena. Underwriters will scrutinize your Loan-to-Cost (LTC) ratios, line-item construction draws, contractor background checks, and building permits. Any delays in your municipal planning pipeline will translate into elevated interest rates and tightly monitored fund disbursements.
Longer terms increase capital exposure. The standard sweet spot for private bridge financing sits between 12 and 24 months. For short-term hard-money loans, having an extension option is critical. Most borrowers underestimate the time it takes to refinance or sell the property, and having an extension option will help avoid sleepless nights and the high costs of refinancing.
Your rate and fees are affected by the loan type. This includes purchases, refinances with no cash out, or refinances with cash out. For the refi, the lender needs to do more due diligence to establish the value. Cash-out refis are considered riskier loans than rate and terms refis without cash out, and therefore lenders will normally charge a slightly higher rate and point.
Recourse means that the borrower personally guarantees the loan in addition to the property. Because the lender has a secondary avenue to recover funds if the asset underperforms, recourse structures can often help smooth over underwriting hurdles and secure more favorable terms.
Only a small percentage of hard money lenders will consider owner-occupied loans, and they will do it by either verifying the ability to pay or the business purpose.
The majority of private loan programs penalize borrowers for paying off a loan too early, ensuring the underlying investors receive a minimum guaranteed yield. If the prepayment penalty window is short (3 to 6 months), it rarely impacts a standard flip. Additionally, speed is a premium service. If you require a loan to fund in under 10 days, lenders must expedite valuations and alter pipelines, meaning your rates and fees will sit at the top of the chart.
To lock in the absolute lowest rates, you must fully verify the property’s historical income and expenses via leases and tax schedules. However, dropping your loan amount to a conservative 45% to 60% LTV often allows lenders to skip income verification entirely. Finally, our interactive pricing table is configured exclusively for first-position liens. Second-position mortgages carry massive risk and require specialized underwriting, significantly lower LTV maximums, and much higher pricing.
Private lenders are bound by supply and demand. When a lender’s existing group of investors get paid off on old loans, that lender suddenly has cash sitting idle. Because idle money represents lost yield, a highly liquid lender is highly motivated to slash points and rates to win your business. Conversely, if a broker's capital pools are temporarily depleted, they will quote high, uncompetitive rates.
Local lenders know your market down to the specific street block. Because they have high comfort with local geography, they are faster, more flexible, and will often greenlight niche properties. However, their capital pools are smaller. National lenders possess massive capital resources, meaning they can offer highly competitive pricing and lower standard fees, but they utilize strict underwriting boxes and lack local nuance.
Direct lenders deploy their own internal capital pools and make final underwriting decisions in-house. Brokers do not fund loans themselves; they operate as matchmakers. While working with a broker adds an extra layer of communication, a skilled broker has access to dozens of separate direct lenders simultaneously, shopping your deal across multiple rate sheets.
When local property values are on a clear, documented uptrend, private investors lend aggressively at higher LTV limits, confident that market appreciation will naturally lower their exposure over time. When markets slow down or face correction uncertainty, investors pull back their leverage targets, striving to stay safely below 65% LTV to insulate themselves.
Macroeconomic conditions strike private markets rapidly. When the Federal Reserve adjusts benchmark interest rates, or when institutional bond yields shift, the yield expectations of wealthy private investors move in tandem. High inflation or broader economic volatility causes private money networks to automatically raise their base floors to outpace alternative safe-haven investments.
Private lending is not immune to legislative changes. New state-level foreclosure moratoriums, updated usury caps, or changes to compliance rules can completely alter the private lending landscape overnight. If a state lengthens the foreclosure timeline, hard money lenders will instantly counter by raising interest rates and dropping maximum LTVs in that specific state to mitigate the increased legal risk.
The average interest rate for a hard money loan typically ranges between 8.50% and 13.00% depending heavily on your Loan-to-Value (LTV) ratio, property type, and your experience level as an investor. Loans with lower leverage (under 60% LTV) secure the lowest rates.
Points are upfront origination fees charged by private lenders, where 1 point equals 1% of the total loan amount. Hard money loans usually average 2 to 4 points due to the accelerated speed, risk, and short-term nature of private capital deployment.
Yes. Because hard money loans are asset-backed, the collateral equity (LTV) is far more important than your credit history. While a low credit score might slightly increase your interest rate or points, it will rarely cause an outright denial if the property has strong equity.
For residential investments, personal income matters very little compared to property equity. For commercial properties, lenders focus primarily on the property’s net operating income (NOI) and cash flow rather than your personal debt-to-income ratios.
Legal Compliance Disclaimer: The rates and fees generated by the Lendersa table are estimated market averages derived from our network of thousands of hard money lenders and are not guaranteed. Your actual interest rate, fees, and loan terms are subject to formal underwriting and will depend on property condition, borrower qualifications, and all other risk factors detailed in this document. Lendersa (NMLS License # [Insert Number Here]) operates exclusively as a marketplace portal connecting wholesale lenders, brokers, and borrowers. Lendersa is not a direct lender, does not make credit decisions, and does not directly fund or arrange loans.