ServicesHard Money Loans
Hard Money Loans in Buda
When a property needs work or the timeline is tight, a bank loan often can't keep up. We look at the property, your renovation plan and how you'll pay the loan off, then build short-term financing that fits the deal you actually have.
Short-term money for investment property
A hard money loan is a short-term loan secured mainly by the property itself. The lender cares most about what the property is worth, what it will be worth after the work is done, and how you plan to exit. Your credit and income still matter, but they are not the whole story the way they are with a conventional loan.
Most of our hard money borrowers are investors buying a fix-and-flip, a dated rental, or a property that won't pass a standard appraisal in its current condition. Before we quote anything, we ask about the purchase price, the scope of work, the timeline and the exit. Getting those details right at the start is what keeps a loan from stalling halfway through a project.
If you are buying a place to live in, or the property is already in good shape, a hard money loan is usually the wrong tool. We will tell you that on the first call and point you toward Conventional Loans or another option that costs less.
What comes with a hard money loan from us
Money toward the purchase
We put up a share of the buying price, sized to the property's current condition and the strength of the overall deal. That lets you compete with cash buyers on places that need work.
Rehab funds paid in stages
Renovation money is released phase by phase, after each stage is finished and checked. Interest builds on what has actually been drawn, not on the whole budget from day one.
Sizing based on finished value
We study what similar, fully updated properties have sold for, alongside the as-is price. That gives an honest read on how much loan the project can carry.
A payoff plan settled before closing
We work out how the loan gets repaid, through a sale or a refinance into a longer-term loan, while terms are still being set. Nobody should be guessing about the payoff once the clock is running.
A single loan officer on your file
One loan officer handles your loan from the opening phone call through the last draw. When something comes up about timing or paperwork, it goes to someone who already knows the project.
Signs a hard money loan fits your deal
The property won't qualify as-is
Missing kitchens, roof problems or foundation issues can stop a conventional appraisal cold. Hard money lending is built for properties that need work before they are financeable.
You need to close quickly
Auctions, estate sales and competitive listings often reward the buyer who can close fast. A bank's underwriting timeline may cost you the property.
Your project is short-term
If the plan is to renovate and sell within months, a 30-year mortgage doesn't match the job. Short-term financing lines up with how flips actually run.
Your income is hard to document
Investors with uneven income or many write-offs can struggle with standard paperwork. If you plan to hold the property long term, Bank Statement Loans may also be worth a look.
How a hard money loan works with us
- 1
Tell us about the deal
Give us a call with the address, the purchase price and what you plan to do with the property. We ask about the work involved and how you'll exit, so we see the whole project before we propose terms.
- 2
Check the property and the math
We review the current value, recent sales of finished properties nearby and your rehab budget. If the margins are tight, we tell you now rather than leave you to discover it halfway through.
- 3
Apply and review terms
You go through the application with your loan officer on a phone or video call, or at our office. We put the rate, points, term and draw schedule in writing, so you know exactly what you're agreeing to.
- 4
Close and draw funds
Once the loan closes, rehab money is paid out in stages as the work moves along. When the project is finished, you sell or refinance and the loan is repaid.
What drives the price of hard money
Short-term lending on properties that need work carries more risk, so rates and points run higher than on a long-term mortgage. Where your numbers land depends on the details of the deal itself. Before you sign anything, we go through each cost line by line, so closing day holds no new charges.
- How much you borrow against value
- The size of the loan compared with what the property is worth weighs more than anything else. Putting more of your own cash into the purchase usually earns better terms.
- Condition and size of the project
- Fresh paint and flooring are a lighter lift than taking a property down to the studs. Bigger jobs with more moving pieces can change the pricing and how draws are handled.
- Experience with similar deals
- If you have finished comparable projects before, you will often see stronger terms. New investors can still borrow, though we may dig a little deeper into the plan and budget.
- Timeline and payoff plan
- A short, clearly defined path to sale or refinance generally costs less than an open-ended one. Extending a loan adds expense, so we set a realistic schedule before closing.
Common questions about hard money
Something not covered here? (512) 312-7947
Will you fund a property I plan to move into?
In most cases, no. This type of financing is meant for investment and business purposes, not a primary residence. If you intend to live there, we can walk you through FHA Loans, Conventional Loans or VA Loans instead.
What will I need to bring for a down payment?
That comes down to the property's value, the size of the renovation budget and how many projects you have done. You should expect to put some of your own money into the deal. Once we have looked at the specifics, we give you a firm figure rather than a guess.
How much weight does my credit carry?
Less than it would on a conventional loan, though it still plays a part. The property and how you plan to pay the loan off count for more. If there are recent credit issues, mention them early so we can account for them honestly from the start.
What happens if the renovation takes longer than planned?
Contractor schedules and inspections slip more often than anyone likes. Some loans can be extended, typically for an added cost. If you can see a delay coming, let your loan officer know right away so we can sort out options while there is still time on the term.
Can the property be somewhere other than Buda?
Yes. We work with investors buying in Kyle, San Marcos, Lockhart and nearby towns. We review value, scope of work and exit the same way no matter where the property sits.
Is this the same thing as a bridge loan?
They are both short-term, but they solve different problems. Hard money usually pays for buying and renovating an investment property. A bridge loan generally helps a buyer purchase the next property before the current one sells, and our Bridge Loans page explains that option.
Let's look at your deal together
Tell us about the property, the work it needs and how you plan to exit. We'll go over the numbers honestly and help you start an application if hard money is the right fit.