Fix and Flip Hard Money Loans

Hard Money Fix and Flip Loans for Commercial and Multifamily Properties

For less-experienced property flippers, borrowers with limited credit, or borrowers looking to fix and flip a severely distressed property, a hard money loan can be a great option. While it's true that hard money loans are significantly more expensive than other forms of multifamily financing, they offer a fast and effective funding solution for investors who can't wait for or may not qualify for other kinds of loans. Typical hard money loans for fix and flip properties offer terms of between 12-36 months and LTC allowances up to 80%.

Sample Terms for Hard Money Fix and Flip Loans in 2026

Size:  Varies

Term:  12- 36 months

LTV/Leverage:  Up to 80% LTC/Up to 65% to 70% ARV (after-repair value) 

Interest Rate:  Rates vary, often significantly higher than permanent financing

Closing Costs: 2.00% - 5.00%

Credit Requirement:  550+ (can vary significantly based on lender) 

Lender Fees: Typically between 1.50 - 10.00% 

Timing:  These loans can typically close in as little as 10-15 days 

Advantages:

• Typically no prepayment penalties
• Fast execution

Disadvantages: 

• High interest rates

• High fees

• Usually requires that the borrower has past experience with 2-3 successful fix and flip projects

• Less experienced borrowers may be required to work with a licensed contractor throughout the entire process