Private Money Loan
Speed and flexibility from private capital.
Short-term financing from private capital sources, ideal for time-sensitive or non-traditional deals.
What is a Private Money loan?
Private money (or hard money) loans are short-term, asset-based loans funded by private investors or funds. They emphasize speed, flexibility, and property value over borrower documentation.
Designed for
Real estate investors, house flippers, and buyers who need to close quickly or fund non-traditional projects.
Why choose it
When speed and flexibility matter more than the lowest possible rate, private money delivers.
Common use cases
- ◆House flips (fix-and-flip)
- ◆Bridge loans between properties
- ◆Auction purchases requiring fast closing
- ◆Distressed or non-conforming properties
Built for borrowers who look like this.
House flippers
Short-term project financing with fast draws.
Bridge buyers
Between selling and buying.
Auction buyers
Need certainty of funds and quick closes.
Investors
Purchasing properties that don't fit conforming underwriting.
The advantages.
Fast closings
Days to weeks, not months.
Flexible underwriting
Focused on the property and exit strategy.
Property-first
Less emphasis on borrower income documentation.
Entity-friendly
LLCs and corporations widely permitted.
Things to weigh.
Higher rates
Priced meaningfully above conventional programs.
Short terms
Typically 6–24 months.
Origination fees
Points and fees are common.
Exit-strategy dependence
Sale or refinance plan is central.
What lenders generally look for.
Requirements vary based on lender guidelines and borrower qualifications. The below is educational — not a commitment or offer of credit.
- Property focus
- Underwriting emphasizes property value and exit
- Term
- Typically 6–24 months
- Down payment / equity
- Substantial equity or down payment usually required
- Documentation
- Streamlined vs. conventional
Answers to what borrowers ask most.
How fast can private money close?
Deals commonly close in days to a few weeks.
What credit score is required?
Some private lenders are credit-flexible; others require strong scores.
Are rates significantly higher?
Yes, typically well above conventional pricing.
How long is the loan term?
Short-term, typically 6 to 24 months.
What is an exit strategy?
The plan to repay — usually a sale or refinance.
Can I use private money for a primary residence?
Programs vary; investment use is more common.
Are interest-only payments common?
Yes.
Do I need experience as an investor?
Some lenders require experience, especially on flips.
Can I close in an LLC?
Yes, common.
What happens if my exit is delayed?
Extensions may be available, often with additional cost.
Private Money Financing Guide
A complete guide to private money and hard money financing: how lenders underwrite the property and the exit rather than the borrower's income, purchase and rehab leverage, draw schedules and inspections, true cost of capital, term and extension mechanics, entity vesting and personal guaranties, and how to transition into permanent financing.
Run the numbers.
Educate yourself.
Complementary programs worth exploring.
DSCR
Investor financing that qualifies based on the property's rental income rather than the borrower's personal income.
Explore DSCR loan requirementsNo Ratio
A non-QM program that does not calculate a debt-to-income ratio, focusing instead on credit, assets, and property.
Explore No Ratio loan requirementsInvestment
Financing solutions built specifically for buying, holding, and scaling investment real estate.
Explore Investment loan requirementsConstruction
Financing for building a new home, with a single closing that converts to permanent financing once construction is complete.
Explore Construction loan requirementsAsk about Private Money.
Get contextual answers on eligibility, structure, and how this program compares to others. Powered by the Vabasso AI Mortgage Assistant.
Related tools, guides, and reading
Curated from the Vabasso content graph — the next best step for this program.
- ProgramDSCR LoansRental financing underwritten on property cash flow, not personal income.
- ProgramNo-Ratio LoansInvestor financing without a stated debt-service ratio requirement.
- ProgramConstruction LoansFinancing that funds the build and converts to permanent financing.
- CalculatorInvestment Property CalculatorEstimate investor returns before you commit to a structure.
- GuidePrivate Money Financing GuideA long-form guide to private money financing, free to read or download.