Most investors don't lose deals because the numbers don't work — they lose them because the financing takes too long. A seller wants to close, a competing offer is circling, and a conventional lender is still asking for another month of bank statements. Knowing exactly how to get a hard money loan, and how to move through the process without stalling, is often the difference between winning the deal and watching it go to someone else.
The good news is that hard money is built to be simple. Because a hard money loan is secured by the property rather than your personal income, the process strips out most of the paperwork and delay that slows down a traditional mortgage. A prepared investor can go from application to funding in days, not weeks — but only if they understand what the lender needs and hand it over cleanly.
This walkthrough lays out the full process step by step: how to qualify, what documents to prepare, how underwriting actually works, and how to reach the closing table fast. At Funded Capital, we're a Miami-based private lender financing investors across 44 states, issuing term sheets in two hours and closing in as little as five days.
Step 1: Know What a Hard Money Lender Is Looking For
Before you apply, it helps to understand what actually drives the decision. A hard money lender underwrites the deal, not your tax returns. That single fact reshapes the entire process — and tells you where to focus your energy.
The lender is asking three questions. What is the property worth today, and what will it be worth after repairs? How much of the total cost are you asking us to finance? And do you have a credible plan to repay — a sale, a refinance, or rental income? Answer those clearly and you're most of the way to approval. For a deeper primer on how these loans work, see our guide on what hard money loans are.
The Numbers That Matter Most
Two ratios decide almost every hard money deal. Loan-to-cost (LTC) measures the loan against your total project cost — purchase plus rehab. Funded Capital funds up to 90% LTC on fix and flip loans, meaning you bring as little as 10% to the table. After-repair value (ARV) is what the property will be worth once the work is done, and it caps how much a lender will advance. Knowing your ARV before you apply signals that you've done the homework.
Step 2: Get Your Deal and Documents Ready
Speed comes from preparation. The investors who close in five days are the ones who walk in with a complete file. Because hard money skips income verification on most programs, the list is short — but each item matters.
Here's what a hard money lender typically needs to move fast:
| Item | Why the Lender Needs It |
|---|---|
| Property address and purchase contract | Confirms the deal, price, and timeline |
| Rehab budget (scope of work) | Determines the renovation portion of the loan |
| ARV support (comps or appraisal) | Caps the loan amount against future value |
| Entity documents (LLC) | Most investor loans close in an LLC |
| Exit strategy | Shows how the loan gets repaid — sale or refinance |
| Track record (optional) | Prior projects can improve terms, but aren't required |
Notice what's not on the list: no tax returns, no W-2s, no debt-to-income calculation on most programs. That's the whole point of asset-based lending. If you're financing a rental instead of a flip, a DSCR loan qualifies you on the property's projected rent rather than your personal income — a related but distinct path with its own short document list.
Have Your Exit Planned
The single most common reason a hard money application stalls is a fuzzy exit. Every hard money loan is short-term — typically 6 to 24 months — so the lender needs to know how it gets paid off. For a flip, that's the sale. For a BRRRR deal, it's a refinance into long-term financing once the property is stabilized. Name your exit clearly and the rest of underwriting moves quickly.
Step 3: Apply and Get a Term Sheet
With your file ready, the application itself is fast. A good hard money lender doesn't make you wait days just to learn whether the deal is a fit. At Funded Capital, you can apply online and receive a term sheet in two hours — a document laying out the loan amount, rate, term, and points so you know exactly where you stand before spending another dollar.
The term sheet is where hard money separates itself from a bank. Instead of a vague pre-qualification, you get real numbers on a specific deal. Fix & Flip pricing starts at 8.75% with up to 90% LTC; DSCR rentals start at 6.0% up to 80% LTV; and New Construction runs from 8.75% up to 85% LTC. Run your specific deal through our loan calculator first so the term sheet confirms what you already expect rather than surprising you.
Step 4: Underwriting, Valuation, and Closing
Once you accept the term sheet, the loan moves into underwriting — and this is where a private lender's speed really shows. Rather than re-verifying your entire financial life, the lender confirms the pieces that secure the loan: the property value, the rehab scope, and clean title.
Valuation
The lender orders or reviews a valuation to confirm the ARV your loan is built on. This protects both sides — it ensures the loan amount is supported by the property's real future value. Because you already provided comps or an appraisal in Step 2, this step validates rather than restarts the analysis.
Title, Insurance, and Closing
In parallel, the lender clears title and confirms insurance is in place. These are standard closing items, and a responsive investor keeps them from becoming bottlenecks by answering requests the same day. When everything lines up, you close — and with Funded Capital, that can happen in as little as five days from application. Our how it works page walks through the full timeline in detail.
Common Mistakes That Slow Down Approval
Knowing how to get a hard money loan also means knowing what derails one. A few avoidable missteps cost investors days.
The most frequent is an incomplete rehab budget — a vague number instead of a real scope of work forces the lender to pause and ask questions. Second is an unrealistic ARV, where the investor's estimate doesn't match the comps, which caps the loan below what they planned for. Third is a missing or undefined exit, which makes even a strong deal look risky. And fourth is slow responses during closing — title and insurance requests that sit for days turn a five-day close into a two-week one. Prepare the file, know your numbers, and stay responsive, and none of these will touch your deal.
Ready to Fund Your Next Deal?
Knowing how to get a hard money loan is really about working with a lender built for speed — and that's exactly what Funded Capital is. We're a Miami-based private lender financing real estate investors across 44 states, structured around how investors actually operate.
We qualify your deal on the property, not your tax returns, with no income verification on most programs. Our Fix & Flip loans start at 8.75% with up to 90% LTC, DSCR rentals start at 6.0% up to 80% LTV, and New Construction runs from 8.75% up to 85% LTC. We lend to your LLC as standard, issue term sheets in two hours, and close in as little as five days.
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Frequently Asked Questions
How do I qualify for a hard money loan?
You qualify primarily on the deal, not your personal income. A hard money lender looks at the property's value, your loan-to-cost ratio, the after-repair value, and your exit strategy. On most programs there's no income verification — no tax returns or W-2s required. If the numbers on the property work and you have a clear plan to repay through a sale or refinance, you're a strong candidate. Apply now to see your terms.
How long does it take to get a hard money loan?
Much faster than a conventional mortgage. With a private lender like Funded Capital, you can receive a term sheet in two hours and close in as little as five days from application. The timeline depends mostly on how quickly you provide a complete file — purchase contract, rehab budget, ARV support, and entity documents — and how fast you respond to title and insurance requests during closing.
What documents do I need for a hard money loan?
The list is short because hard money is asset-based. You'll typically need the purchase contract, a rehab budget or scope of work, support for the after-repair value (comps or an appraisal), your LLC documents, and a defined exit strategy. Unlike a bank loan, most hard money programs don't require personal income documentation. Having these ready is the single biggest factor in closing fast.
Can I get a hard money loan with bad credit?
Often, yes. Because the loan is secured by the property rather than your credit profile, hard money lenders are far more flexible on credit than conventional lenders. Strong credit can improve your rate or terms, but a lower score doesn't automatically disqualify you the way it might with a bank. The deal itself carries most of the weight.
How much money do I need to put down on a hard money loan?
It depends on the loan-to-cost ratio. Funded Capital funds up to 90% LTC on fix and flip deals, which means you bring as little as 10% of the total project cost to the table. The stronger the deal and the ARV, the less you typically need to contribute. Run your numbers through our calculator, then apply to confirm your exact figures.