A hard money loan is a short-term financing option for investment property rehab and flipping. However, unlike traditional loans, you cannot go to any conventional lender to obtain one. Hard money loans are not offered by most traditional lenders.

Where can you find them?

We have the solution. We have compiled a list of the top hard money lenders. We’ll discuss their advantages and drawbacks so that you can choose the best loan option for your needs.

Best hard money lenders

1. Flip Funding: Best Overall

Flip Funding is a flexible lender that can be used for any type of property project. It’s one of the most popular hard money lenders.

Many hard money lenders will only finance a specific type of project, as you might know. Flip Funding offers loan programs that can be used for any type of property project.

The Fix and Flip term loan allows you to purchase and renovate property exactly as you would expect. If you own land that you wish to develop, New Construction loans are available. Flip Funding also offers a Rehab loan for those who already own property but need funds. You can also get loans for commercial properties, and multi-family and mixed-use projects.

This flexibility is not Flip Funding’s only positive quality. You will also find competitive rates and a fast closing time. There is also a low down payment requirement. Flip Funding is able to do all of these things better than other lenders (as you can see from the reviews below), but it does them all well.

Flip Funding is the best hard money lender for most people.

2. Groundfloor: Lowest rates

Groundfloor has a clear advantage over other hard money lenders: Lower starting interest rates.

Groundfloor’s rates are 6% lower than those of other lenders. Groundfloor’s maximum interest rate is only 18%. Although it is higher than what you would expect, it is still lower than the maximum rate you will find at most lenders (even traditional term loans).

But here’s the catch. Groundfloor doesn’t offer a low rate. Rates and terms will depend on many factors including your experience as a rehabber and details of the flipping process. Groundfloor has very strict guidelines about the types of projects it funds.

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Only single-family and one-to-four-unit projects are eligible. No larger multifamily, commercial, or construction projects or any other projects are allowed.

Groundfloor is the best place to find low-interest rates if you have experience and a keen eye for quality projects.

Also read: What are the Best Alternative Business Loans?

3. Kiavi: The fastest closing time

Sometimes you need to get your loan funds ASAP. Kiavi is your solution.

The closing time for Kiavi is the fastest we have ever seen, at just five days. CoreVest and Groundfloor have shorter turnaround times than CoreVest, while Residential Capital Partners and Groundfloor take two weeks. Kiavi’s five-day turnaround time really stands out. This allows you to take advantage of even the most urgent of opportunities.

This short time period comes with some caveats. Borrowers need to ensure that all documents are received promptly and that you respond quickly after submitting their loan application. Kiavi also offers a five-day closing time period for experienced flippers. Closing will take around 10 days for first-timers and fourth-timers. Expect Kiavi to close in less time than hard money lenders.

Kiavi’s quick turnaround time makes it the best lender if you have little time.

4. Residential Capital Partners: Lowest down payment

You have probably heard this saying. It takes money to make it, but you may want to spend a lot less to get it started. Fortunately, Residential Capital Partners understands.

Residential Capital Partners provides hard money loans starting from 0% downpayment. Some lenders require a 10% to 20% down payment, which can quickly add up, especially if you have a large project. Residential Capital Partners offers its borrowers a payment-free deal.

Yes, closing costs will still be payable (title insurance, property, and appraisal fees), and depending on your experience in flipping and financial qualifications, Residential lenders might offer a lower percentage (after-repair value) than other lenders.

Residential Capital Partners allows you to save money on your down payment.

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5. CoreVest: Best line of credit

Many lenders offer loans for hard money (Like the 10 on this listing)However, not all offer hard money credit. CoreVest does.

CoreVest offers a Fix-and-Flip line in addition to the usual bridge loan. It functions just like a line of credit. It allows you to draw, repay your draw amount and then draw again. This means that you don’t need to apply for a commercial hard money loan each time you start a project. Instead, you can draw from your Fix line.

These lines are available starting at $1 million. CoreVest might not be the right line for you if your business is primarily in small projects. You can also apply for its bridge loan. CoreVest only considers borrowers who have completed at most two projects. New flippers should consider a different lender.

6. Patch of Land

Patch of Land is a unique hybrid of crowdfunding and lending. Patch of Land funds your hard-money loan initially, but then it invites investors to crowdfund the loan amount in exchange for interest. This is an interesting model and the borrowers seem to love Patch of Land.

However, it is not the fastest or most cost-effective lender. We’ve heard some grumblings from dissatisfied shareholders, which makes Patch of Land’s future uncertain. This shouldn’t stop you from borrowing but it does make Patch of Land less popular than our top picks.

7. Sherman Bridge Lending

Sherman Bridge Lending offers excellent hard money loans at reasonable rates with quick turnaround times. We love it and would recommend it to anyone who asks.

Why is it an honorable mention? Sherman Bridge is one of the most restrictive lenders for hard money. They can only be used to finance single-family and two-to-four-unit projects. It doesn’t accept first-time flippers. Sherman Bridge isn’t as competitive or well-rounded as other lenders. Although it is still a good choice, we don’t like it.

Also read: Top 15 Crowdfunding Sites for Your Business

8. Lima One

Lima One has a lower interest rate than most of the hard money lenders on this list. If you are looking to save interest but Groundfloor isn’t for you, Lima One is a great alternative.

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Lima One has some restrictions for first-time flippers. Take, for example, They are not eligible for all types of loans. Lima One also offers lower LTV (loan to value) and ARVs (after repair value) than most lenders. This means that you might get less overall.

9. RCN Capital

RCN Capital is another lender of hard money that’s competitive but not as good. Consider its interest rates. They are reasonable, but far from the lowest rates, we have ever seen.

Add to that the fact first-time flippers may only be eligible for certain loans. Prepayment penalties for some loans may also be included RCN Capital is positioned in the honorable mention territory. It’s okay, but not the best.

10. Lending One

If we are being truthful (which we are), Lending One has a lot of things to offer. However, we don’t have any idea. The website is very sparse. It is missing crucial data like interest rates, maximum loan amounts and ARV down payments, and more are all missing. It does encourage you to call for additional information.

This kind of invitation is irritating at best It’s 2022, so put the information online. It’s just downright annoying when we call, and then leave a message with no answers, it’s downright obnoxious. Because we have read positive things, we are still including them. You’ll need to verify that yourself, as we couldn’t.

Last Line — Top hard money lenders

You can obtain the hard money loan you need from the above lenders to purchase and/or improve your property. No matter what priority you have, it doesn’t matter. It doesn’t matter if it’s a quick closing or a low-interest rate. We have a hard money lender available for you.

It’s now up to you to apply for your loan, complete your project, and (hopefully), make a good profit.