How Hard Money Loans Work in 2025

[LaMancha Sims]

In 2025, hard money loans remain a fast, asset-backed financing option for real estate investors. Unlike traditional loans, these short-term loans are secured by property value rather than credit scores, making them ideal for fix-and-flips, rehabs, or bridge financing.

Lenders evaluate the property's after-repair value (ARV) and loan-to-value (LTV) ratio—typically up to 70-75%. Interest rates (10-15%) and fees (2-5 points) are higher than conventional loans, but funding can close in days.

With digital underwriting and blockchain-based title verification streamlining the process, hard money loans in 2025 are quicker and more transparent than ever.

Need fast funding? Hard money could be your solution!

Get A Quote