ServicesHard Money Loans
Hard Money Loans in Kyle, TX
Hard money loans are short-term loans based mostly on the property and your plan for it, not just your tax returns. We help investors and buyers on a tight deadline line up the money, see the full cost up front and plan how they will pay it off.
What a hard money loan is and when it fits
A hard money loan is a short-term loan secured by real estate. The lender looks hardest at the property: what it is worth now, what it will be worth after the work, and how much you are putting in. Your credit and income still matter. They are just not the whole story.
It fits a few jobs well. Buying a fixer that will not pass a conventional appraisal. Closing fast before another buyer does. Picking up a property at auction or from an estate. Most of these loans run months, not decades, and the plan is to sell or refinance before the term ends.
It is not the cheapest money. Rates and fees run higher than a conventional loan. We say that plainly on the first call, and if a conventional loan or a bank statement loan would do the job for less, we tell you.
What we handle on a hard money loan
- Deal review first
- We look at the purchase price, the scope of work and your exit plan. If the numbers do not work, you hear it from us before you spend money on a valuation.
- Rate quotes with every fee listed
- You see the rate, the points, lender fees and any draw fees on one written sheet. No surprise charges at the closing table.
- Rehab draw setup
- When the loan covers renovation costs, we explain how draws work. That means the inspections, the paperwork and how long funds take to release after each stage.
- Exit planning
- We map out how the loan gets paid off. If you plan to keep the property as a rental, we talk about the refinance into a longer-term loan before you close on the short one.
- Title and closing coordination
- We stay in touch with the title company and your agent so the closing date holds.
Signs a hard money loan may be the right call
The property will not pass a regular appraisal
No working kitchen, foundation trouble, a roof at the end of its life. Conventional and FHA appraisals can stop a deal like that cold.
You need to close in days, not weeks
A seller who wants a quick, certain offer or an auction deadline leaves no room for a long underwriting file.
You flip or rehab properties
You buy, renovate and sell, and the money only needs to be out for a few months.
Your income is hard to document right now
Maybe you just started a business. If the deal is strong, the property can carry more of the weight. If you have steady self-employed income, a bank statement loan may cost less, and we will compare the two.
You are buying before you sell
Need to buy the next place before the last one closes? A bridge loan may fit better. We lay both options side by side.
What moves the cost of a hard money loan
Hard money costs more than a long-term home loan because the lender takes on more risk for a shorter time. The total comes from the rate, the points charged at closing and a handful of fees. We put every one on paper so you can run your deal numbers before you sign.
How much you put in
A bigger down payment or more equity in the deal usually brings a better rate and fewer points.
Property condition and plan
A light cosmetic refresh is less risk than a full gut job. The scope of work and the after-renovation value both shape the terms.
Your track record
Borrowers who have finished flips before often get better terms. First deals still get done. They just tend to price a little higher.
Loan length and extensions
Shorter terms can cost less overall. If the project runs long, extension fees add up, so build some cushion into your schedule.
Draw structure
Loans that fund renovation in stages carry inspection and draw fees. Fewer, larger draws can mean fewer fees.
How a hard money loan works with us
- 1
First call
Tell us about the property, the price, the work and your timeline. We give you rate quotes and an honest read on whether hard money makes sense.
- 2
Numbers on paper
We send a written breakdown of the loan amount, rate, points and fees. Check it against your budget before you commit to anything.
- 3
Application and valuation
We take your loan application over the phone, which only takes a short call. The lender then orders a valuation of the property as it stands and, for rehab loans, after the planned work.
- 4
Closing
We line up title and closing with your agent. Meet us at our office or handle questions by phone and video, whichever is easier.
- 5
Draws and payoff
During the rehab we help with draw requests. Near the end of the term we check in on your sale or refinance so the payoff is not a scramble.
Hard money loan questions
Can I use a hard money loan to buy a place to live in?
Usually no. Most hard money lenders lend on investment property, not a primary residence. If you plan to live there, a conventional, FHA, VA or USDA loan is the better fit, and we can quote those too.
How fast can a hard money loan close?
Faster than most home loans, since the file is lighter. The real timeline depends on the valuation, title work and how quickly you send documents back. We give you a realistic date on the first call instead of a hopeful one.
Do I need good credit to qualify?
Credit matters less than it does on a conventional loan, but it is still checked. The property, your down payment and your exit plan carry more weight. A lower score may mean a higher rate or more cash in the deal.
What if my flip does not sell before the term ends?
Talk to us early. Options can include an extension, if the lender offers one, or a refinance into a longer-term loan if the property can be rented. Waiting until the last week limits your choices.
Does the loan cover the renovation cost?
Often part of it. Many hard money loans fund a share of the purchase and release renovation money in draws as work gets done. How much depends on the property, the plan and how much you bring to closing.
Have a deal on the table?
Tell us about the property and your plan. We will walk through the costs line by line and help you decide if hard money is the right tool. We work with investors in Kyle, Buda, San Marcos and Lockhart.