Best Types of Hard Money Loans in 2022

Thus far, 2022 has turned out to be a seller’s property market. With inflation and the price of gas at all time highs, real estate investors have had to get creative when it comes to securing the funds they need for the properties they’ve set their sights on. This includes fix and flip single family and multi-family properties.

Quick Lending, hard money lenders in Houston, TX, advides investors who wish to secure a loan for purchasing real estate should explore several options. One option is called a “hard money loan. This might be your number one option, depending on your financial circumstances. That’s because hard money is faster to acquire and the loan qualification process is said to be simpler than other non-hard money loans.

Defining Hard Money Loans

According to a recent report, a hard money loan is defined as “short-term property financing” offered by a private lender like an investment firm or business. Traditional mortgage loans are generally paid back over a period that can range from 15 to 30 years. But a hard money loan must be paid back far quicker. One to three years is a typical term for this variety of loan.

The experts say that hard money loans usually involve a higher cost than traditional loans, but these costs are often offset by their short duration. This is risky for the lender, but the financial reward can be great.

There are no “one-size-fits-all” hard money lending operations since every borrower and real estate project comes with their own set of unique circumstances. It’s best to do your own research when it comes to choosing the right lender for your project.

That said, here is just a small sampling of what are considered the best hard money lenders operating in 2022.


Locating hard money financing for buy-and-hold, long-term properties is said to be a challenging endeavor. But the firm Kiavi is said to provide hard money loans for long-term commercial rental properties.

Said to utilize the property’s rental income to help with qualifying for the loan, Kiavi also allows for self-employed and low-income borrowers to construct an investment portfolio. They offer hard loans for duplexes to multi-family rental properties of up to four units. The term of their loan is more like a traditional loan in that it is 30 years.

Their adjustable rates are said to start at 3.875 percent along with a 5/1 or 7/1 Adjustable Rate Mortgage or ARM. They also offer an “Interest Only” option.

RCN Capital

RCN Capital is said to be a hard money lender that prides itself on offering low down payment financing. They also have competitive interest rates along with 100 percent financing for renovation costs. They could be the right choice when it comes to a “fix and flip” property.

RCN is said to offer borrowers an After Repair Value Loan that provides financing for up to 90 percent of the entire cost associated with a fix and flip property. On top of this it will cover 75 percent of the After Repair Value or ARV.

Rates are said to start at 7.49 percent for up to a one year term. The loan is available for most property types including town houses, single family and multi-family homes, mixed-use properties, and more.

Lima One Capital

Lima is unique in that it offers flix and flip loans for “real estate investors with no fix and flip experience.” However, the investor must possess a credit score of at least 660. Also, the property must only require cosmetic repair and nothing structural and/or having to do with a faulty foundation.

Rates start at 7.5 percent for a fix and flip hard money loan, making them one of the more expensive companies in terms of fees and interest rates. Also, it should be noted that their maximum hard money loan amount is limited to 70 percent of the ARV. This means you will need to pay for a significant amount of the repair costs “out of pocket.”


Groundfloor is said to be the only firm that uses crowdfunding for a fix and flip hard money loan. Certified investors who compete to find your project will allow you access to their best interest rates which can sometimes run less than 2 percent.

The hard money lender provides fix and flip loans in 31 states for multi-family properties of one to four units. No payments are due during the term of the loan. Loan fees can be rolled into the borrowed amount.

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