What a hard money loan actually costs.
Three points and 12% interest. The points cover every lender fee we charge. The only other cost is a $320 document prep fee.
Three numbers. That is the whole list.
Points
Three points on the loan amount, and they include all of our fees: no separate origination, processing, underwriting, or discount fee. Points are usually rolled into the loan and paid at payoff.
Interest
One rate, quoted up front on your term sheet. Repeat borrowers earn better terms over time through the Scale Program.
Document prep
The one charge outside the points: generating the loan documents and getting them to your title company.
No fee stacking.
Plenty of lenders advertise a low rate and make it back in fees. We put everything into the points, so the number you see is the number you pay.
- No origination feeIt's included in the points.
- No processing or underwriting feeAlso included in the points.
- No appraisal feeWe value the property in house, typically within 24 hours.
- No inspection feesNo per-draw inspection charges on your rehab.
- No payoff feeYou don't pay us extra to close out your loan.
- No discount feeThree points is the full lender charge.
Compare apples to apples.
Hard money lenders price their loans very differently. One quotes two points, another quotes a lower rate, and both can cost you more than they look once the fees show up on the closing statement: origination fees, processing and underwriting fees, appraisal fees, draw inspection fees, and payoff fees.
The only fair comparison is the total. Before you choose a lender, get every charge in writing and add it up.
Ask every lender these questions
- How many points, and is there a separate origination fee on top of them?
- Do you charge processing, underwriting, or admin fees?
- Do I pay for an appraisal or valuation?
- Is there an inspection fee for each rehab draw?
- Is there a fee to pay off the loan or release the lien?
- What are the document and closing charges?
A $200,000 fix and flip loan
A $150,000 purchase with a $50,000 rehab, both funded by us.
| Loan amount (purchase + rehab) | $200,000 |
|---|---|
| Three points, rolled into the loan | $6,000 |
| Document prep | $320 |
| Origination, underwriting, appraisal, inspection, payoff fees | $0 |
| Lender charges beyond interest | $6,320 |
The note is written for $206,000 and the points are paid at payoff. Interest is 12%. Title, recording, and other third-party closing costs are separate. Run your own deal in the flip calculator.
Rates and fees, answered.
How much does a hard money loan cost?
With us, three points and 12% interest. The points include all of our lender fees. The only additional charge is a $320 document prep fee to generate the documents and get them to the title company.
Do you charge origination, inspection, or payoff fees?
No. There is no origination, processing, underwriting, appraisal, draw inspection, or payoff fee. It is all in the three points, plus the $320 document prep fee.
When do I pay the points?
Points are typically rolled into the loan, so you don't bring them to closing, though you can pay them at closing if you prefer. On a $200,000 loan, three points is $6,000, the note is written for $206,000, and the points are paid when the loan pays off.
Do I have to pay for an appraisal?
No. We value the property in house, typically within 24 hours, instead of waiting weeks on a third-party appraisal.
How much can I borrow?
On a single property we lend up to 65% of the after-repair value. With additional collateral, such as equity in a rental we can take a second position on, we can potentially go higher.
What credit score do I need?
There's no minimum. We're asset-based lenders, so the property qualifies for the loan. We look at the deal: the property, the rehab budget, the after-repair value, and your exit.
Price your next deal.
Send us the property and you'll usually have a term sheet within a day.