ServicesHard Money Loans
Hard Money Loans in Dripping Springs
Hard money loans give real estate investors short-term financing based on the property and the plan, not a long stack of tax returns. We help you size the loan, map the renovation budget and plan the exit before closing, so the project holds together from purchase to sale or refinance.
When a hard money loan is the right tool
A hard money loan is short-term financing secured by the property itself. The lender weighs the property's value, the scope of the work and your plan to pay the loan off more heavily than W-2s or debt ratios. Terms usually run from several months to a couple of years, often with interest-only payments while the work is underway.
It suits an investor buying a dated property that won't pass a conventional appraisal, a buyer who has to close before a bank could finish underwriting, or anyone carrying a property through a renovation before refinancing it. It is not meant for a long-term primary residence. For that, we would point you toward a conventional loan or an FHA loan.
We think the best investment properties are the ones someone looks after for the long run. With 11 years in the mortgage industry behind us, we size the loan so the budget covers the work that keeps a property sound for decades, like the roof, the plumbing and the electrical, and not only the finishes buyers see first.
What we handle on a hard money loan
- 01
Loan sizing against the property
We look at the purchase price, the cost of the planned work and the realistic value once it is finished. That tells you how much you can borrow and how much cash you need to bring.
- 02
A renovation budget with draws
Renovation funds are usually held back and released in draws as work is completed. We help you set a draw schedule that matches how your contractor actually bills, so crews are not left waiting on money.
- 03
Exit planning from day one
Before closing, we talk through how the loan ends: a sale, or a refinance into a conventional loan once the property is finished and rented or occupied. A clear exit is what keeps a short-term loan short.
- 04
Terms in writing
You see the rate, points, fees, term and any extension costs on paper before you commit.
- 05
Line-by-line guidance
We have held our NMLS license for 10 years. We walk you through each disclosure rather than handing over a stack of papers to sign.
Questions about Hard Money Loans?
Call(512) 518-4926Signs a hard money loan fits your project
The property needs serious work
A missing kitchen, a failing roof or outdated wiring can keep a property from qualifying for conventional financing. Hard money lends on the plan to bring it back.
Your timeline is tight
Maybe a seller wants a quick closing, or a cash offer is competing with yours. Asset-based underwriting can usually move faster than a full bank file.
Your income is hard to document
Self-employed borrowers and full-time investors often report low taxable income. With hard money, the property carries more of the weight. If you want a long-term loan instead, our bank statement loans may be the better match.
You plan to hold after the renovation
Buy, renovate, rent and refinance is a common path. Hard money funds the first stretch, then a longer loan takes over.
You are buying before you sell
If you need to purchase a new place before selling the one you live in, a bridge loan is usually the closer fit. We are glad to compare the two with you.
How a hard money loan comes together
- 1
A conversation about the deal
By phone, by video or at our office, you tell us about the property, the price, the work and your exit. We give you a pre-qualification and a sense of the leverage the deal supports.
- 2
Scope and numbers
You share the purchase contract, a scope of work and your contractor bids. We check them against the expected value and flag any line items that look thin.
- 3
Valuation and underwriting
An appraisal or valuation confirms the as-is value and the finished value. Underwriting reviews the property, your experience and your cash reserves.
- 4
Closing and draws
At closing, the purchase is funded and the renovation money is set aside. As each phase is completed, an inspection confirms the progress and the next draw is released.
- 5
Payoff
When the property sells or you refinance, the loan is paid off. We stay in touch through the project, so an extension never arrives as a surprise.
Where the price of hard money comes from
Short-term, asset-based lending is priced above a conventional loan, because the lender accepts more risk over a shorter window. What you pay adds up from the rate, the points due at closing and the number of months the loan stays open. We break out each piece on its own, so you can see exactly where the money goes.
- Leverage
- Borrowing a larger share of the purchase and renovation tends to raise both the rate and the points. Putting more down usually brings both lower.
- Your track record
- Investors with finished projects behind them often see better terms than someone on a first flip. A first deal can still qualify when the budget holds up and the reserves are in place.
- Scope and property type
- A light cosmetic refresh carries less risk than a gut renovation. A Hill Country property with acreage, a septic system and a well adds steps to the valuation.
- Term and extensions
- A longer term, or a project that runs past schedule, adds interest and can bring extension fees. Setting a realistic timeline at the start keeps this under control.
Hard money loan questions
Do I need good credit for a hard money loan?
Credit matters less than it does with a conventional loan, but it is still reviewed. The property value, your equity in the deal and your reserves carry most of the weight. A recent bankruptcy or foreclosure may limit how much you can borrow rather than rule you out.
Is hard money an option for a property I plan to occupy?
Usually not. These loans are built for investment and business purposes, not for a place you move into. If you intend to live there, we will compare conventional, FHA, VA or USDA loans with you instead.
How much cash do I need to bring?
It depends on how much leverage the deal supports. Plan to cover a down payment, closing costs, points and enough reserves to carry the payments through the project. We lay all of this out during pre-qualification so there are no gaps at closing.
What happens if the renovation runs long?
Many loans allow an extension for a fee. Tell us early if the schedule slips. We can review the extension terms, or start a refinance sooner if the work is far enough along.
Can the property sit somewhere other than Dripping Springs?
It can. Investment properties in Wimberley, Buda, Bee Cave and nearby towns go through the same review as one here in town. Since we meet by phone, by video or at our office, the distance to the property does not change how we work with you.
Bring us the deal you are weighing
Share the address, the asking price and what the work involves. We will go through pre-qualification and rate quotes with you, so the numbers are settled before your offer goes in.