ServicesHard Money Loans
Hard Money Loans in Cedar Park
When a purchase needs to close before a bank can finish underwriting, a hard money loan uses the property's value to carry the deal. We map out each step to closing, tell you which ones depend on outside parties, and call you the moment a date moves.
Short-term financing built around the property
Hard money is a short-term loan where the property is the main security. The lender starts with the asset: its current value, its expected value once the work is complete, and the route you will take to pay the balance off. Credit and income still get reviewed, but they weigh less than they would on a conventional home loan, and that is a big part of why approvals can come together quickly.
Investors use it to buy and renovate for resale, to purchase a house in condition too rough for a standard appraisal, or to make an offer that holds up against cash buyers when a long financing contingency would sink it. It is not a mortgage you keep for decades. Borrowers typically plan to sell or refinance into longer-term financing within months.
A fast loan is only useful when you can see the calendar. Before your earnest money goes in, we hand you a working schedule covering the valuation, title search, draw setup and closing, along with the number of days each step usually takes.
Our part of the loan, from first numbers to final draw
- A numbers check before the contract
- We weigh the purchase price against your renovation budget and your payoff plan. If the margin looks too thin, you hear it from us before you sign anything.
- As-is and finished-value appraisal
- Two values drive the loan amount: the property's worth in its current condition and its expected worth when the work is finished. We order the valuation early and show you how each figure changes what you can borrow.
- Draw schedule setup
- Renovation money is normally held back and paid out in phases after each stage passes inspection. We build the draw schedule with you so your contractor's billing lines up with what the loan will release and when.
- Title and closing follow-through
- We keep the title company and your agent in the loop and raise liens, survey problems or missing payoff letters the day they appear, not days before closing.
- A plan for the long-term loan
- If the property will become a rental, we map out a refinance into longer-term financing such as Conventional Loans or Bank Statement Loans well before the short term ends.
When a hard money loan may make sense
The seller is pushing for a quick close
Sellers comparing cash offers rarely wait out a full underwriting cycle. Approval based on the asset can close that gap.
The house is too rough to appraise
A missing kitchen, a failing roof or foundation movement can keep a property out of most traditional financing until the work is finished.
You plan to renovate and sell
A fix-and-flip needs money for the purchase and for the work, paid out in stages as the project moves along.
Your tax returns understate what you can carry
Investors between deals, or with returns that swing year to year, may miss standard income rules while still bringing a sound property and a clear payoff plan.
Your cash is tied up in another property
When the funds you need are waiting on a different sale, a short-term loan can cover the timing. The Bridge Loans page goes deeper on that situation.
Why hard money pricing varies from deal to deal
Short-term, asset-based lending carries more risk for the lender than a 30-year mortgage, so pricing runs higher. The interest rate is only one line. Origination points, draw fees and extension terms all shape what you actually pay, and we go through each one with you before anything is signed.
Loan-to-value and down payment
Putting more cash into the purchase shrinks the lender's exposure, and pricing usually improves with it. Borrowing near the top of what the property supports pushes the cost up.
Scope of the renovation
Paint, flooring and fixtures are a lower risk than a gut job involving framing, roofing or foundation work. Heavier scopes tend to bring stricter draw rules and higher pricing.
Projects you have finished before
A borrower with completed flips often gets better terms than someone on a first project. Have the addresses and results of past deals ready for the call.
Term length and extension fees
A shorter term costs less in total, but extension fees kick in if the work runs over. We size the term to a realistic schedule rather than the best case.
How solid the payoff plan is
A resale price supported by comparable sales, or a long-term refinance you already qualify for, is easier to price than a payoff that depends on hope.
How the process runs, step by step
- 1
Phone call and rate quote
You tell us the address, price, planned work and exit. We give you a rate quote and a first look at how much of the purchase and rehab the loan could cover.
- 2
Application and property documents
You send the contract, scope of work and contractor bid. We confirm which items the lender needs and which can wait, so nothing stalls on paperwork.
- 3
Valuation and title
The valuation and title search usually set the pace. We give you a target date for each and call you if an inspector's availability or a title issue pushes it back.
- 4
Closing
You review the final terms, including points, interest and draw rules, before you sign. Closing can happen at the title office, and we walk you through the documents line by line.
- 5
Draws during the work
As each phase of the renovation is finished, you request a draw, an inspection confirms the work, and funds are released. We tell you how long that cycle typically takes so your crew is not left waiting.
Hard money loan questions
How quickly can a hard money loan close?
The valuation, the title search and how fast your documents come in set the pace. We do not commit to a date that depends on someone we cannot control. You get a realistic range on the first call, and we call you whenever an outside party shifts a deadline.
Will a low credit score keep me from qualifying?
We do review credit, but the property and the payoff plan count for more here than on a conventional loan. A weaker score more often changes the pricing or the down payment than ends the conversation. We will tell you plainly where your file stands.
Can this loan be used for a property I plan to live in?
No. Hard money is designed for investment property. For a primary residence, Conventional Loans, FHA Loans or VA Loans usually fit better, and a loan officer can go over those during the same call.
How does the loan get paid off?
Most borrowers either sell the finished property or refinance into a long-term mortgage once the work is done and the property appraises at its improved value. We plan that payoff with you before closing so the term matches it.
What if the property I'm buying sits outside the city limits?
That is common, and it is not a problem. Plenty of the deals that come to us are in towns nearby, such as Leander, Round Rock and Georgetown. You can talk with us by phone, over video or in person at our office, whichever fits your week.
Found a property worth running the numbers on?
Give us the address, the contract price and your scope of work. You get a rate quote and a dated schedule to closing that your contractor and agent can plan against.