ServicesHard Money Loans
Hard Money Loans in Manor, TX
Hard money is a short-term loan based mostly on the property, not your tax returns. It is built for investors who need to close fast on a flip or a rehab. We show you what it costs over the months you will hold it, so the deal still works at the end.
What a Hard Money Loan Is For
A hard money loan is a bridge for investors. You borrow against the property you are buying, usually for a few months to a year or so, then pay it off when you sell or refinance. Approval leans on the property's value and your plan more than on your income paperwork.
It costs more than a regular home loan. Rates run higher, there are points at closing, and the term is short. That is fine when the loan is a tool for a quick turn. It becomes a problem when a project drags and the meter keeps running.
So we look at the whole timeline with you, not just the first month. If a conventional loan or one of our bank statement loans would serve you better, we will tell you that plainly.
What We Handle on a Hard Money Loan
Deal review before you commit
We go over the purchase price, the rehab budget and what the property should be worth when the work is done. If the numbers are thin, you hear it from us early.
Total cost over the hold
We lay out the rate, points, fees and monthly interest for the months you expect to hold the property. Then we run it again with a few extra months added, because projects slip.
Rehab draw setup
Many hard money loans fund the renovation in stages. We explain how draws are requested and inspected so your contractor gets paid on schedule.
Exit plan on paper
Before closing, we agree on how the loan gets paid off: a sale, or a refinance into a longer-term loan. If it is a refinance, we check that you are likely to qualify for it.
Steady contact through closing
Your loan officer stays on the file from application to closing. With 11 years in the mortgage industry behind us, we know where these deals tend to stall and keep them moving.
Signs Hard Money Fits Your Deal
- The property won't pass a bank appraisal
- Missing kitchen, bad roof, foundation trouble. Many standard lenders will not touch a property in that shape. Hard money will, because the plan is to fix it.
- You need to close quickly
- A seller wants a fast, firm closing or a cash-like offer. Hard money can move faster than a full underwriting file.
- Your income is hard to document
- You are an investor or business owner whose tax returns understate what you make. The property and your plan carry more weight here.
- You plan to sell or refinance soon
- If you will be out of the loan within a year or so, the higher cost can make sense. If you plan to hold for years, it usually does not.
How a Hard Money Loan Moves From Call to Closing
- 1
Talk through the deal
You call and tell us about the property, the price, the work and your timeline. We can meet at our office or by phone and video.
- 2
Run the numbers together
We size the loan against the purchase price and the expected after-renovation value. You get a rate quote and a written breakdown of points and fees.
- 3
Application and valuation
You complete the loan application and we order a valuation of the property. We also review your experience with past projects, since that can affect terms.
- 4
Closing and draws
We close with the title company and fund the purchase. Rehab money is released in draws as work gets done and checked.
- 5
Payoff
When you sell or refinance, the loan is paid off. If you are moving into a long-term loan, we can start that refinance before the hard money term runs out.
What Moves the Cost of a Hard Money Loan
Hard money pricing depends on risk and time. The less cash you put in and the longer you hold, the more it costs in total. We are NMLS licensed for 10 years, and we put every charge in writing before you sign so nothing shows up at closing you did not expect.
- Your down payment
- More of your own money in the deal usually means better terms. A smaller down payment raises the lender's risk and the price.
- How long you hold it
- Interest is charged every month the loan is open. A three-month delay on a rehab can eat a big piece of the profit, so we price that possibility up front.
- Property condition and scope
- A cosmetic refresh is lower risk than a gut rehab. Bigger projects often mean more draws, more inspections and tighter terms.
- Your track record
- Investors with finished projects behind them often get better rates and higher loan amounts than first-time flippers.
Hard Money Loan Questions
- How is hard money different from a regular mortgage?
- A regular mortgage is long-term and priced for borrowers with fully documented income. Hard money is short-term and based mostly on the property and your plan. It closes faster but costs more each month. It is meant to be paid off, not lived with.
- Can I use a hard money loan to buy a place to live in?
- Hard money is built for investment property, not a primary residence. If you are buying a place to live, look at our conventional loans, FHA loans or VA loans instead. We can help you sort out which one fits.
- What happens if my project runs long?
- Some loans allow an extension, usually for a fee. That is why we run your numbers with extra months built in before you close. If a delay would wipe out the profit, it is better to know that now.
- Do I need good credit to qualify?
- Credit still matters, but less than it does on a standard home loan. The property's value, your down payment and your experience carry more weight. Call us and we can talk through where you stand.
- Should I use hard money or a bridge loan?
- They overlap. Hard money is usually for investors buying and renovating. Our bridge loans page covers short-term financing for buyers moving from one property to the next. Tell us your situation and we will point you to the better fit.
Got a Deal on the Table?
Tell us the property, the price and the plan. We will walk through the full cost over your hold time and start your loan application if the numbers work.