ServicesHard Money Loans
Hard Money Loans in Manor, TX
We arrange short-term hard money loans for investors buying, renovating or reselling property. The loan is sized on the property and your plan for it, so we read the term sheet line by line with you, from points and draws to extension terms, before you sign.
What a hard money loan is, and when it fits
A hard money loan is a business-purpose loan secured by an investment property. Approval leans on the property's value and the borrower's exit plan more than on tax returns or a long credit file. Terms are short, usually measured in months, and payments are often interest-only until the property sells or is refinanced.
It is the right tool when speed or condition rules out a bank. A property with a failed foundation, missing kitchen or no working HVAC often will not pass a conventional appraisal, and an auction or off-market seller may want to close in days. Hard money is built for that gap.
It is the wrong tool for a primary residence or for anyone without a clear way out of the loan. Rates and fees run higher than long-term financing, so the plan has to pay for the money. When a deal fits better as Conventional Loans or Bridge Loans, we will tell you that.
What we work through with you
- Value and loan-to-cost math
- We look at the purchase price, the as-is value and the estimated after-renovation value. Lenders cap the loan against those numbers, and knowing which cap binds first tells you how much cash you need at closing.
- Renovation budget and draw schedule
- Rehab money is usually held back and released in draws after an inspection confirms the work is done. We help you match draw stages to how your contractor actually works, so a roof or slab phase is not waiting on a draw that was set for the wrong milestone.
- Term sheet line items
- Origination points, interest rate, prepayment terms, extension fees, default rate and draw inspection fees all sit in the fine print. We put each one in plain language so you can compare offers on total cost, not just the headline rate.
- Exit plan review
- Every hard money loan ends with a sale or a refinance. If your exit is a refinance, we check early whether the finished property and your file are likely to qualify for a conventional loan, so the takeout is not a surprise.
- Title, insurance and entity paperwork
- Many investors buy through an LLC. We tell you which documents to have ready, such as formation papers and a builder's risk or vacant-property policy, so they do not hold up closing.
Signs a hard money loan may be the right call
The property will not pass a bank appraisal
Structural problems, missing systems or unpermitted additions can stop a conventional loan cold. Hard money lenders expect a property that needs work.
The seller wants a fast close
Auctions, estate sales and off-market deals often reward the buyer who can close quickly. A bank timeline can cost you the contract.
You plan to renovate and resell
A fix-and-flip held for months, not years, does not need a 30-year loan. Short, interest-only terms match the project.
Your income documents lag your experience
Investors with uneven tax returns but a track record of finished projects often qualify more easily on the asset. If you plan to hold long term, Bank Statement Loans may be worth comparing.
What moves the cost of a hard money loan
Hard money costs more than long-term financing because the lender takes on a short, asset-heavy risk. The total you pay comes from several line items, not only the rate. We quote them together so you can see what the loan really costs over your expected hold.
Leverage
Borrowing a higher share of the purchase and renovation cost usually means a higher rate or more points. A larger down payment can bring both down.
Your track record
Investors with several completed projects often see better terms than a first flip. Photos and closing statements from past deals help.
Property condition and scope
A cosmetic refresh is lower risk than a gut renovation. Deep work, such as foundation leveling on Central Texas clay, can affect both pricing and how draws are structured.
Term length and extensions
A realistic term avoids extension fees. We would rather set a slightly longer term up front than have you pay to extend later.
Draw and inspection fees
Each draw may carry an inspection fee. Fewer, well-planned draws can lower the total.
How a hard money loan comes together
- 1
Pre-qualification call
On the phone we talk through the address, purchase price, scope of work and your exit. You leave the call knowing roughly how much you can borrow and how much cash the deal needs.
- 2
Property and budget review
We gather the contract, a line-item renovation budget and any photos or bids. An appraisal or valuation sets the as-is and after-renovation numbers the loan is built on.
- 3
Term sheet and comparison
We walk you through the points, rate, draw structure and extension terms. If something in the fine print works against your timeline, we flag it before you commit.
- 4
Closing and first draw
Closing can happen at our office or remotely, depending on the title company. After that, each draw follows an inspection of completed work, and we keep you informed on what the next inspection needs to see.
Hard money loan questions
Can I use a hard money loan to buy a place I will live in?
Generally no. Hard money loans are business-purpose loans for investment property, not owner-occupied residences. If you plan to live in the property, we will look at Conventional Loans, FHA Loans or other options instead.
How fast can a hard money loan close?
It depends on how quickly the appraisal, title work and your documents come together. Hard money moves faster than bank financing because there is less income review. We will give you a realistic timeline on the first call instead of a best-case one.
Does my credit score matter?
It matters less than with a bank loan, but it is not ignored. Lenders still review credit, past project experience and cash reserves. A lower score may mean more down payment or higher pricing rather than a flat no.
What happens if my renovation runs long?
Most loans allow an extension for a fee, and the terms are written into the note. That is why we read extension clauses closely before closing and size the term to your real schedule, with room for permit or contractor delays.
Can I refinance out of a hard money loan?
Yes, and many investors plan for it. Once the work is finished, a refinance into a conventional loan can replace the short-term debt if the property and your file qualify. We check that path at the start, not at the end.
Have a property under contract or in your sights?
Tell us the address, the price and what the property needs. We will go over the numbers and the term sheet details before you commit to anything.