“I want to apply for a Hard Money Loan”, Here Are 10 Things You’re Going To Need

Ok, you need a hard money loan. The first step – get informed! The list below is a great place to start as it represents the 10 most common things you will need in securing a hard money loan as quickly as possible.

  1. An understanding that hard money lending is ASSET BASED. As a matter of fact, Hard money lending is often referred to as asset-based lending. This means that the borrower will need to either own real estate which they can secure their loan against or have a down payment to create the need LTV for a purchase with hard money.
  2. A purchase and sale agreement in a purchase situation or the address of the securing property in a refinance situation. In both situations, you will want to have the correct address of the subject property and securing property if applicable.
  3. A general idea of property value, as is and if you are improving the property the after-repair value
  4. Clear title. Your hard money lender may be able to help obtain a clear title policy which will allow for their loan to secure to the subject property.
  5. The plan for how the hard money loan will be used. How you plan to make the monthly payments and how you plan to pay the loan off at the end of the term or sooner.
  6. The amount of the loan you need to successfully execute your plan.
  7. The timeline or length of time you need the loan.
  8. How quickly you need the funds from the loan to aid you in your plan. For the list of the 7 questions, you must ask before you get a hard money loan check out this blog
  9. 10 – 35% (or more down payment) or equity in existing owned real estate.
  10. Basic understanding of terminology (for more on hard money terminology check out the blog I wrote explaining What hard money POINTS.  You will want to know what Loan to Value (LTV) means – this is a ratio that compares the loan amount vs. the value of the subject real estate. For example, if the subject real estate has a value of $100,000 and a loan secured against that real estate for $65,000; then the LTV is 65%. Another term you will want to know is “as-is” value, which is the current value of the subject property. “points” is another term you will want to know, and it means percentage of the loan that will be paid as the fee to the hard money lender, again check out the blog I wrote on hard money points for more information on that.


If you have any specific questions about your situation, I’d love to hear from you!  Contact me here and for more information about me and why I love what I do check it out here.

Until next time, Dream Big and Take Action