ServicesHard Money Loans
Hard Money Loans in Taylor, TX
When a property needs real work and a bank won't touch it as it stands, a hard money loan can fund the purchase and the renovation. We size the loan to the project, walk through your inspection plan, and help you map a clear exit before closing.
What a hard money loan is, and when it makes sense
A hard money loan is short-term financing secured by the property itself. The decision rests mostly on the property, its expected value once the work is finished, and your plan to get there. Your income and credit still matter, just less than they would on a conventional home loan. Terms usually run months, not decades, and payments are often interest-only.
It's the right fit when a house has a failed foundation, an old roof, a missing kitchen or open permits that keep it from qualifying for regular financing. It also helps when you need to close faster than a typical mortgage allows or compete with cash buyers. It is not a long-term loan for a place you plan to live in. If that's your situation, our Conventional Loans or FHA Loans pages are a better starting point, and Bridge Loans cover buying before you sell.
We spend real time on the part many investors skip: permits and inspections. A rehab that stalls waiting on a city sign-off costs you interest every month, so we talk through it plainly before you commit.
What we handle on a hard money loan
- 01
Purchase and renovation funding
We look at financing both the acquisition and the renovation budget in one loan, so you aren't juggling a second source of money mid-project.
- 02
A line-by-line look at your scope
We go through your contractor's bid with you. Structural, electrical, plumbing and HVAC work usually needs permits, and we make sure those costs and timelines show up in the budget instead of surprising you later.
- 03
Draws tied to finished work
Renovation funds are released in stages after an inspection confirms each phase is done. We explain what the inspector looks for, so your draw requests go through cleanly.
- 04
Exit plan review
Before closing we talk through how you'll pay the loan off, whether that's a sale or a refinance into a long-term rental loan. A plan that only works if everything goes perfectly isn't a plan, and we'll tell you if yours looks thin.
- 05
Plain answers on terms
Points, interest, extension fees and payoff rules are laid out in writing so you can compare the full cost, not just the rate.
Questions about Hard Money Loans?
Call(512) 601-6937Signs a hard money loan may be your best option
The property won't pass a standard appraisal
Bank lenders need a house that's livable and safe at closing. Missing systems, major damage or unfinished construction usually rule that out.
You're up against cash offers
Sellers of distressed property often want a quick, simple close. Financing built around the property can keep your offer competitive.
Unpermitted work needs to be fixed
Additions or garage conversions done without city approval can block conventional financing. A short-term loan gives you time to bring the work up to code and get it signed off.
You plan to sell or refinance within a year or so
If the plan is to renovate and then sell or move into long-term financing, paying for a 30-year loan you'll hold briefly makes little sense.
Your project timing is tight
Auction deadlines and short option periods don't leave room for a long underwriting process.
How a hard money loan works with us
- 1
A phone call about the deal
Tell us the address, purchase price, renovation plan and your exit. We'll give you a rate quote and an honest read on whether hard money fits or another loan would serve you better.
- 2
Property and scope review
We look at the contract, your contractor's bid and any permit history on the property. If anything is open or expired, we talk through what it takes to close it out.
- 3
Valuation and title
An appraiser or evaluator estimates current and finished value, and title is checked for liens or problems that could hold up closing.
- 4
Closing
You sign at our office or with a closing agent, and purchase funds go out. We confirm the draw schedule and inspection steps with you before you leave.
- 5
Draws, sign-offs and payoff
As each phase is finished, an inspection confirms the work and the next draw is released. Once final city inspections pass, you sell or refinance and the loan is paid off.
What shapes your rate and fees
Expect to pay more here than on a 30-year mortgage. The lender is making a short loan against a property that isn't finished yet. The numbers you'll see come from the details of your deal, and we walk through each one by phone so you can set them against your projected profit.
- How much of your own cash is in the deal
- A larger down payment and more of your money in the renovation lower the lender's risk and usually improve your terms.
- Your track record
- Borrowers who have finished similar projects often see better pricing than first-time investors. A first project is still possible; it's just priced differently.
- Scope and property condition
- A cosmetic refresh carries less risk than structural work or a gut renovation that needs several rounds of city inspections.
- Loan length and extensions
- A longer term or an extension adds cost. Waiting on inspections is a common reason projects run long, which is why we build realistic timelines from the start.
- Points and closing fees
- Upfront points, appraisal, title and draw inspection fees all count toward your total cost, and we list them before you commit.
Hard money loan questions
What should I expect to bring to closing in cash?
That comes down to the property, the size of the renovation and how many projects you've finished. Lenders in this space want to see your own money in the deal, not a loan that covers every dollar. Give us your numbers on the call and we'll tell you what cash to set aside.
Can I use a hard money loan to buy a house I'll live in?
Hard money is meant for investment property. If you plan to live in the house, owner-occupied loans follow different rules and usually cost much less. We'd point you toward a Conventional Loan or FHA Loan instead.
What happens if a city inspection delays my project?
Delays happen, especially when inspectors find older wiring or plumbing that has to be brought up to current code. Tell us early. We'll look at your timeline and any extension options so a delay doesn't turn into a default.
Do you check my credit?
Yes, though credit carries less weight than on a regular home loan. The property, your budget and your exit plan matter most. A lower score doesn't automatically rule you out.
Can I refinance out of a hard money loan into a rental loan?
Many investors do once the renovation is finished and the property is rented. The house will need to appraise and pass that lender's standards, so final city sign-offs matter. We can talk through that refinance with you before you even buy.
Have a property in mind?
Bring us the address, your budget and your plan for selling or holding. Investors in Taylor, Hutto, Round Rock and nearby towns can talk it through with a loan officer by phone, by video or at our office.