Providing Reliable Hard Money Loans

Reliable Hard Money Loans — Fast, Flexible Financing for Real Estate Investors

Hard money loans are short-term, asset-backed loans secured by real estate that give investors quick access to capital when timing matters. Below we explain how hard money lending works, why asset-focused underwriting is preferred by investors, and which program types address common funding needs — purchases, rehabs, and bridge financing. You’ll find practical guidance on LTV and ARV mechanics, a documentation checklist designed to support 24-hour conditional approvals, and a clear path from application to funding that enables closings in 5–7 days. We also translate frequent borrower concerns — credit, property eligibility, and foreclosure timing — into straightforward solutions so you can evaluate deals with confidence. The sections that follow cover definitions and investor benefits, available loan programs, eligibility and document requirements, the fast approval and closing workflow, how California market expertise improves underwriting, and concise answers to common questions.

What Are Hard Money Loans and How Do They Benefit Real Estate Investors?

Hard money loans are private, short-term loans underwritten primarily against the property’s value and equity rather than detailed income verification. By centering the loan decision on collateral — including after-repair value (ARV) — lenders can move faster and base approvals on equity and a credible exit strategy. For investors, the key benefits are speed, flexibility, and the ability to act on time-sensitive opportunities that conventional banks typically cannot finance quickly. Below we outline how underwriting and timelines differ from traditional mortgages and why that difference matters when you’re competing for deals.

Instead of lengthy tax-return reviews, hard money underwriting focuses on collateral value, ARV projections, and a concise exit plan. That approach shortens review cycles and reduces conditional requirements, allowing borrowers with non-traditional income or recent credit issues to access capital when the property equity and exit strategy are solid. Understanding this shift helps you choose between hard money and conventional financing for a given transaction.

Hard money also supports leverage in acquisition and renovation strategies because many products permit higher loan-to-value ratios based on ARV. That extra leverage enables faster deal execution and clearer exit pathways — we quantify these mechanics with LTV and ARV examples in later sections.

The core investor advantages in brief:

1. Speed: conditional approvals in as little as 24 hours help you win competitive bids.
2. Asset-focused underwriting: approval relies on property equity and ARV rather than full income paperwork.
3. Flexible use cases: purchase financing, fix & flip projects, bridge loans, and foreclosure rescue.
4. Higher leverage on rehab products: lenders may approve higher LTVs based on ARV.
5. Exit-driven terms: short-term structures built around a planned sale or refinance rather than long amortizations.

These points set up the next section, which catalogs specific loan programs and how each supports investor strategies.

How Do Hard Money Loans Work Compared to Traditional Financing?

Hard money loans are secured by a lien on the property and sized against current value or ARV. Traditional loans, by contrast, prioritize borrower credit, income documentation, and long-term amortization. As a result, hard money underwriting centers on valuation, title review, and a concise exit plan instead of prolonged credit checks and tax-return verification. Terms are typically short — often 6 to 24 months — and pricing reflects the expedited risk profile. That difference explains why investors use hard money for quick acquisitions and renovation plays, and it frames the investor advantages we outline next.

What Are the Key Advantages of Using Hard Money Loans?

Hard money provides speed, flexibility, and pragmatic underwriting that aligns with investor timelines by prioritizing collateral and exit strategy over exhaustive income documentation. That combination is valuable when you need to move quickly on purchases, manage rehab schedules, or prevent foreclosure. For example, a lender able to issue a conditional approval in 24 hours lets an investor submit stronger offers — a capability that often wins deals in competitive markets. These benefits are most effective when paired with reliable ARV estimates, disciplined rehab budgets, and a realistic exit plan, which we detail in the program and documentation sections below.

Which Types of Hard Money Loans Does Fidelity Funding Offer?

Here are our core hard money programs with typical LTV ranges, terms, funding timelines, and common use cases so you can match product to strategy. The quick comparison below makes it easy to see which program fits your deal.

Loan Program	Typical LTV	Typical Term	Typical Funding Time	Use Case
Purchase Loans	Up to 70% of purchase price	6–24 months	5–7 days	Fast acquisitions where timing is critical
Fix & Flip Loans	Up to 70%–75% of ARV (depending on scope)	6–12 months	5–7 days with rehab draws	Purchase + renovation projects sized to ARV
Bridge Loans	Up to 65% of value	1–12 months	3–10 days	Temporary gap financing before refinance or sale

This snapshot prepares you for the program-level descriptions and example scenarios that follow.

What Are Fix and Flip Loans and How Do They Support Property Renovation?

Fix & flip loans are short-term, ARV-based loans that finance purchase plus renovation for properties intended for resale. Lenders typically provide an acquisition advance and staged rehab draws tied to contractor milestones or inspections, which protects the lender and funds the work in phases. LTVs often reach 65%–75% of ARV depending on project scope and documentation. Terms are short to align with rapid resale timelines. Knowing draw cadence and ARV calculation best practices helps you manage cashflow and set a clear exit — sale or refinance — from day one.

How Do Commercial Hard Money Loans Cater to Business and Investment Properties?

Commercial hard money loans incorporate property-level cashflow analysis — net operating income (NOI), lease terms, and debt service coverage (DSCR) — along with valuation. These products support larger loans and asset types such as multi-family, retail, office, and mixed-use where income and replacement cost matter. Terms remain short compared with conventional commercial mortgages and require a clear exit plan, usually refinance to permanent financing or sale after stabilization. Knowing these underwriting differences helps you prepare the financials needed for fast approvals.

What Are Bridge Loans and When Should Investors Use Them?

Bridge loans close short-term financing gaps — for example, to close a purchase while a permanent refinance is arranged or to hold a time-sensitive acquisition pending sale or lease-up. Bridges typically carry higher monthly costs but can be approved and funded quickly, making them ideal for finite liquidity needs. Common uses include purchase-to-refi, portfolio inventory aggregation, or stopping an imminent foreclosure. Because bridge loans are short-term, plan your refinance or sale carefully and ensure title and exit documents are ready to avoid rollover costs.

What Are the Requirements and Eligibility Criteria for Hard Money Loans?

This section gives a concise checklist of key eligibility factors and documents so borrowers can prepare for fast underwriting and increase the chance of a 24-hour conditional approval. The table below lists common requirements, required documents, and typical verification times to make preparation actionable.

Requirement	Documents Needed	Typical Time to Verify
Property valuation / ARV	Photos, rehab scope, comps, appraisal or BPO	24–48 hours
Title status	Preliminary title report, vesting information	1–3 days
Borrower ID & entity docs	Government ID, entity formation docs, signatory verification	Same day to 2 days
Proof of funds / exit	Bank statements, sale contract, refinance terms	24–72 hours

Use this table to prioritize what to submit for fast verification and to anticipate common delays. Below we explain how equity, LTV, and ARV interact to determine loan sizing.

Property equity and ARV calculations determine maximum loan amounts and pricing because lenders evaluate combined loan-to-value (CLTV) positions and the planned exit. For ARV products, underwriters estimate post-repair value using local comps and then cap the loan at a percentage of that ARV to preserve a recovery margin. For purchase loans, the lender compares purchase price and available equity to set lending capacity. These mechanics drive what documentation speeds approval — outlined next.

Scannable checklist for 24-hour conditional approvals:

• Complete property summary: address, condition, and key photos.
• Rehab scope and budget: contractor bids or line-item estimates.
• Proof of funds: bank statements or escrow deposit documentation.
• Title prelim: current title report or recent vesting information.
• Borrower identification: government ID and entity formation docs when applicable.

This bundle represents the minimum package for rapid underwriting. Fidelity Funding’s asset-based approach prioritizes property equity over strict credit or full tax-return documentation, giving flexible approval paths when collateral and exit strategy are clear. In-house underwriting further shortens verification windows and supports borrowers with non-traditional income profiles; submitting the prioritized documents above directly supports reaching the 24-hour conditional approval target described next.

How Does Property Equity Influence Loan Approval?

Property equity — either current value minus liens or projected ARV minus total project costs — sets the practical ceiling for a loan because it defines the lender’s recovery buffer. Lenders calculate LTV or CLTV when second liens or seller carry-back financing are present to ensure combined encumbrances remain within acceptable risk limits. For example, an ARV-based rehab may permit a loan up to a stated percentage of ARV while retaining reserves for soft costs and market variance. Knowing how equity translates into loan capacity helps you shape exit plans and consider seller carry or additional collateral to improve terms.

What Documentation Is Needed for Fast Approval?

Prioritized documentation shortens underwriting and reduces back-and-forth during a 24-hour conditional review. Strong photos and contractor bids often speed valuation and draw scheduling. Whenever possible, provide items in a single submission packet to minimize verification cycles.

• Property photos, address, and condition summary.
• Recent comps or a BPO/appraisal if available.
• Detailed rehab scope and contractor bids.
• Proof of funds or a sales contract for the planned exit.
• Preliminary title report and borrower ID/entity documents.

Submitting these items together enables faster appraisal and title checks; optional extras — contractor licenses, HOA documents, or permits — can further accelerate closing. The next section maps these verifications into a practical approval and funding timeline.

How Fast Can You Get Approved and Funded with Fidelity Funding’s Hard Money Loans?

We outline the approval-to-closing workflow so investors know exactly what’s required to hit the fastest windows — conditional approvals in as little as 24 hours and closings typically in 5–7 days. The table below shows each process step, borrower inputs, and expected timing.

Process Step	Required Input from Borrower	Expected Time
Initial submission	Property summary, photos, rehab scope, proof of funds	Same day
Valuation & comps	Access for BPO or appraisal, contractor bids	24–48 hours
Title & lien check	Preliminary title report, payoff information	1–3 days
Conditional approval	Signed term sheet or commitment	<24 hours after verification
Closing coordination	Final docs, escrow instructions, funding wire	3–7 days from conditional approval

This timeline clarifies responsibilities and priorities to keep a deal on a 5–7 day closing track. Follow this concise playbook to maximize the chance of a 24-hour conditional approval:

1. Submit a complete packet in one upload: property details, photos, rehab budget, and proof of funds.
2. Provide recent comps or allow a rapid BPO/appraisal to speed valuation.
3. Supply a preliminary title report to prevent title surprises and accelerate escrow.
4. Confirm your exit strategy with supporting documents: sales contract or refinance terms.
5. Be responsive to conditional requests — timely answers shorten verification significantly.

Following these five steps minimizes friction and supports the conditional approval window. Fidelity Funding’s in-house underwriting and private capital allow compressed timelines — conditional approvals can be issued in as little as 24 hours and closings can occur in 5–7 days when title, appraisal, and borrower documentation are complete. Our direct private-funding structure and local underwriting resources reduce the handoffs common with brokered or bank financing, which is why clean paperwork and quick responses are essential. If you’re ready to move quickly on a time-sensitive deal, recommended next actions include: Submit a Deal, call our team, or fill out the contact form to start underwriting.

What Are the Steps to Get Approved Within 24 Hours?

To secure a conditional approval in 24 hours you must deliver a near-complete underwriting packet and enable rapid valuation and title review. The checklist below lists prioritized items and expected turnaround for each verification — this condensed process is built for time-sensitive offers where quick conditional terms matter.

1. Send a single submission packet: property address, photos, rehab scope, and proof of funds.
2. Accept BPO/appraisal scheduling and provide access for inspection if requested.
3. Upload a preliminary title report or authorize a quick title pull.
4. Provide clear exit documentation (sales contract or refinance intention).
5. Respond promptly to any lender follow-ups to finalize the conditional approval.

When these steps are completed without gaps, an in-house underwriter can issue a conditional approval within a day. The next paragraph explains how that conditional approval converts to a 5–7 day closing.

How Does Fidelity Funding Achieve Closings in 5 to 7 Days?

Fast closings come from coordinated operations: in-house underwriting, available private capital, proactive title coordination, and escrow readiness. Keeping decisioning internal minimizes administrative handoffs and compresses funding windows — provided the borrower delivers a clean title, complete documentation, and timely signatures. Typical delays — title exceptions, slow contractor verification, or incomplete exit documentation — are avoidable with pre-submitted title reports and contractor bids. The final step is arranging escrow and wiring funds promptly once conditions are cleared.

How Does Fidelity Funding Support California Real Estate Investors with Local Expertise?

Our California market focus speeds and sharpens underwriting. Local comp knowledge, title and escrow relationships, and familiarity with area permitting and rehab costs improve ARV estimates and title turnaround. That regional expertise reduces valuation uncertainty and strengthens underwriting judgments that depend on neighborhood comps and market velocity, which is especially important in rehab-heavy markets where ARV accuracy and contractor timelines determine feasibility.

Which California Regions Does Fidelity Funding Serve?

Fidelity Funding partners with borrowers across multiple California markets. Serving specific metropolitan and county areas enables our underwriters to reference recent comps and rely on established title and escrow partners. Local coverage shortens time-to-value because our teams use up-to-date neighborhood comparables and know common local title issues. That presence matters most where rehab markets move quickly and ARV precision drives deal viability.

How Does Local Market Knowledge Benefit Borrowers?

Local expertise benefits borrowers through faster, more accurate ARV estimates, trusted title and escrow relationships that reduce exceptions, and better risk assessment for complex property types like mixed-use or tenant-occupied assets. Local underwriters anticipate market cycles and pricing shifts, which increases confidence in both conditional approvals and final funding. The practical effect: fewer surprises and smoother closings for investors.

What Are Common Questions About Hard Money Loans?

Is It Hard to Get Approved for a Hard Money Loan?

Approval is typically easier when the property has sufficient equity and you present a clear exit strategy. Lenders prioritize collateral and value over perfect credit or traditional income documentation. While credit can affect pricing, strong equity, realistic ARV projections, and complete documentation often outweigh lower credit scores. Borrowers with solid rehab plans, contractor bids, and clear title generally see faster, more predictable approval paths than those relying solely on income-based underwriting.

What Property Types Are Eligible for Hard Money Financing?

Hard money commonly funds single-family homes, small multi-family units, small commercial properties, mixed-use buildings, and certain land or construction projects that have a clear plan and adequate equity. Eligibility varies by lender and product: raw land or highly speculative developments usually face stricter underwriting, while rehab-ready single-family homes and stabilized small multi-family assets are frequently approved. Expect nuanced underwriting that accounts for occupancy, condition, and neighborhood comps.

How Do Interest Rates and Loan Terms Compare to Traditional Loans?

Hard money loans usually carry higher interest rates and shorter terms than conventional mortgages because they price for speed and elevated short-term risk. Typical rates range from high single digits to mid-teens depending on product, LTV, and borrower profile. Terms are short — commonly 6 to 24 months — and fees may include origination points or upfront processing charges that reflect expedited underwriting and private capital costs. The trade-off is faster access and greater flexibility, which is often worthwhile for time-sensitive value-add opportunities.

When deciding between cost and speed, quantify expected net returns after financing expenses. Choose hard money when the incremental profit from a faster acquisition or value-add execution exceeds the incremental financing cost; otherwise pursue slower, lower-cost conventional financing.

Frequently Asked Questions

What is the typical timeline for hard money loan approval and funding?

With a complete submission, conditional approvals can be issued in as little as 24 hours. Once conditions are met, closings typically occur in 5–7 days. The asset-based nature of hard money — focusing on property value rather than lengthy income verification — makes this speed possible. Timely document submission and responsiveness are essential to maintain these expedited timelines.

Can I use hard money loans for investment properties other than residential?

Yes. Hard money can fund commercial properties, multi-family units, land, and construction projects provided there’s a clear plan and sufficient equity. Lenders evaluate cashflow potential, condition, and market comparables when determining eligibility, making hard money a flexible option for diverse investment strategies.

What are the risks associated with hard money loans?

Hard money provides quick capital but carries higher costs and shorter terms. If a property doesn’t sell or refinance as planned, higher interest and short horizons can create financial strain. Property values that fall short of projections also increase repayment risk. Mitigate these risks with a realistic exit strategy, accurate ARV estimates, and conservative rehab budgets.

How does the loan-to-value (LTV) ratio affect my hard money loan?

LTV determines the maximum loan amount relative to property value or ARV. Higher LTVs increase borrowing capacity for renovations but also raise lender risk, which affects pricing and required reserves. Understanding how LTV influences terms is essential for planning financing and exit strategies.

What should I prepare before applying for a hard money loan?

Prepare a complete property summary, current photos, a detailed rehab scope, proof of funds, and a preliminary title report. Having these documents ready significantly reduces verification time and improves the chance of a 24-hour conditional approval. A clear exit strategy — sales contract or refinance plan — will also strengthen your application.

Are there any prepayment penalties with hard money loans?

Prepayment penalties vary by lender and loan terms. Some lenders apply fees for early payoff; others do not. Review the loan agreement carefully and discuss prepayment options with your lender before signing to avoid unexpected costs if you plan to repay early.

Conclusion

Hard money loans give real estate investors fast, reliable access to capital so they can act on time-sensitive opportunities conventional lenders may miss. With flexible, asset-based underwriting and expedited approval paths, these loans support purchases, rehabs, and bridge financing when speed and certainty matter. By understanding the programs, required documentation, and the role of local market expertise, you can choose the right product and move quickly. Ready to explore your options? Contact us to discuss your deal and start the underwriting process.