How Long Does It Take to Get a Hard Money Loan?
Quick Answer
5–15 business days from application to funding. Some experienced lenders can close in as few as 3 days for straightforward deals, though 7–10 days is the most common timeline.
Typical Duration
Quick Answer
Hard money loans are among the fastest financing options in real estate, typically closing in 5–15 business days. Unlike conventional mortgages that take 30–45 days, hard money lenders focus primarily on the property's value rather than the borrower's credit history, which streamlines underwriting significantly.
Hard Money Loan Timeline
| Stage | Time Frame | Details |
|---|---|---|
| Application and initial review | Day 1–2 | Submit property details, purchase contract, and borrower information |
| Property valuation/appraisal | Day 2–5 | Lender orders a BPO, drive-by appraisal, or internal valuation |
| Underwriting | Day 3–7 | Lender evaluates deal structure, LTV ratio, and exit strategy |
| Title search and insurance | Day 5–10 | Title company verifies clear title and issues commitment |
| Document preparation | Day 7–12 | Loan documents are drafted and reviewed |
| Closing and funding | Day 10–15 | Documents signed, funds disbursed |
Hard Money vs. Conventional Loan Speed
| Factor | Hard Money Loan | Conventional Mortgage |
|---|---|---|
| Typical closing time | 5–15 days | 30–45 days |
| Appraisal type | BPO or internal valuation | Full appraisal required |
| Income verification | Minimal or none | Extensive documentation |
| Credit score requirement | 550+ (flexible) | 620–740+ |
| Decision based on | Property value and equity | Borrower creditworthiness |
| Down payment | 20–40% | 3–20% |
Factors That Affect Closing Speed
Property Type
Single-family residential properties close fastest because valuations are straightforward. Commercial properties, raw land, and multi-family buildings require more due diligence and may extend the timeline to 2–3 weeks.
Borrower Preparedness
Having all documents ready at application — including the purchase contract, property photos, renovation budget (for fix-and-flip loans), and proof of funds for the down payment — can shave 2–5 days off the process.
Title Issues
Title searches occasionally uncover liens, judgments, or ownership disputes that must be resolved before closing. Clean titles close on schedule; problematic titles can add 1–3 weeks.
Lender Type
Private individual lenders can sometimes close in 1–3 days for repeat borrowers with established relationships. Larger hard money lending companies typically take 7–14 days due to internal compliance processes.
Lender Comparison
| Lender Type | Typical Closing Time | Loan Amount Range | Interest Rate Range |
|---|---|---|---|
| Private individual lender | 1–5 days | $50K – $2M | 10–15% |
| Regional hard money company | 5–10 days | $75K – $5M | 9–13% |
| National hard money lender | 7–15 days | $100K – $25M+ | 8–12% |
| Online/fintech hard money | 5–12 days | $75K – $10M | 9–14% |
How to Get Funded Faster
- Pre-qualify before finding a deal — establish a relationship with a lender so they know your track record and financial capacity.
- Provide a clear exit strategy — lenders fund faster when they see a concrete plan (sell after rehab, refinance into conventional, etc.).
- Use the lender's preferred title company — this eliminates coordination delays between parties.
- Have your down payment liquid — proof of funds in a bank account, not locked in other investments.
- Order the appraisal early — ask the lender to begin the property valuation on day one.
Typical Hard Money Loan Terms
| Term | Typical Range |
|---|---|
| Loan term | 6–24 months |
| Interest rate | 8–15% |
| Points (origination fee) | 1–4 points |
| LTV ratio | 60–75% of property value |
| Prepayment penalty | Usually none |