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Andrade Real Estate Services

Hard Money

  • Investment
  • Non-QM
  • 600 Min FICO
  • 25% Min Down

Hard money loans provide short-term financing solutions for real estate investors who need quick, flexible funding outside traditional bank guidelines. These programs primarily focus on property value, collateral, and exit strategy rather than borrower credit or income. Loans are typically used for fix-and-flip projects, bridge financing, ground-up construction, or short-term investment holds. Because of the increased risk and business-purpose nature, interest rates are higher (12%–13.5%) and equity requirements are stricter, but closings are faster, underwriting is streamlined, and funding is available for projects that conventional lenders won’t finance.

 

This program is ideal for buyers who:

  • Need fast, short-term financing to acquire, rehab, or reposition a property.
  • Are doing a fix-and-flip and want leverage on both purchase and rehab costs.
  • Value speed, flexibility, and asset-based approvals over traditional bank underwriting.

Scenario

Credit Score

Min Down

Max LTV

Rate

Notes

Fix & Flip (Asset-Based)

600+

25%

75%

12.5%–13.5%

Funds 85% of purchase + 100% of rehab, subject to ARV and experience tiering.

Bridge Loan (Asset-Based)

600+

25%

75%

12.5%–13.5%

For acquisitions/refi with no rehab; exit plan required.

Construction (Asset-Based)

600+

25%

75%

12.5%–13.5%

Land + new build. Full plans, permits, contractor docs required.

Transactional (Asset-Based)

600+

N/A

N/A

3 pts flat

Designed for double closings/wholesalers.

Rehab (Credit-Based)

680+ (650 exception)

30%

70%

12%–13.5%

100% rehab financed; requires approved GC, plans, and SOW.

Bridge (Credit-Based)

680+

30%

70%

12%–13.5%

For rental or light/no rehab; no cash-out <6 mo.

Ground-Up (Credit-Based)

680+ (650 exception)

30%

70%

12%–13.5%

Full entitlement, zoning, permits, and survey required.

All Products

Varies

30%

≤70% ARV

12%–13.5%

First lien only; investment purpose only.

Residency Eligibility

Eligible


  • Valid SSN — must have a valid Social Security Number (SSN).
  • Permanent residents — must provide a valid, unexpired Green Card.
  • Non-permanent residents — eligible with valid visa or Employment Authorization Document (EAD).
  • ITIN borrowers are eligible, provided the ITIN number matches consistently across all documents (such as W-2s, paystubs, and identification).

Ineligible


  • Foreign nationals without ITIN or valid U.S. ID.

Occupancy Requirement

Investment Use


Borrower will not occupy the property.

Note


Rental income may be used to qualify if documented per guidelines. Positive cash flow may strengthen the file but is not always mandatory for approval.

Income Consistency Requirements

Asset-Based


Income generally not required; loan approval is collateral/ARV-driven.

Credit-Based


Income may be considered.

  • Must show stable or increasing pattern (e.g., leases, rental income, W-2/1099s).
  • Rental income can be used if documented by lease agreement or appraisal rent schedule (1007).

Income Type (Credit-Based Only)

Requirement

Documentation

Wage Earner

2 years stable employment history (gaps allowed if explained). Must show likelihood of continuance.

30 days paystubs + 2 years W-2s; VOE if required.

Self-Employed

2 years of self-employment required (1 year possible with ≥5 years prior work history in same field or relevant professional license.). Must demonstrate stable or increasing income.

2 years tax returns; YTD P&L; business bank statements if requested.

Part Time

2-year history required; must be likely to continue.

W-2s, paystubs, VOE verifying hours and history.

Seasonal

2-year history required; must be likely to continue.

W-2s, paystubs, VOE or employer letter confirming rehire pattern.

Social Security, Disability, and Retirement Income

Must be expected to continue ≥ 3 years.

Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).

Rental Income

Rental income can be used if documented by lease agreement or appraisal rent schedule (1007).

Lease agreement or appraisal.

Down Payment Funds

Asset-Based


  • Verified liquid funds required; 15–40% down depending on LTV/LTC.

Credit-Based


  • Bank statements required (typically 2 months) to verify funds.
  • Often 6 months of P&I reserves required for credit-based loans.

Gift Funds & Rate Buydowns

Gift Funds


Rarely allowed. If permitted, must be fully documented and seasoned in borrower’s account. Most hard money programs require borrower skin in the deal (own funds).

Temporary Interest Rate Buydowns


Not available in hard money programs.

Loan Amounts

Minimum Loan Amount


  • $250,000 minimum (case-by-case exceptions).

Maximum Loan Amount


  • $2,500,000 (case-by-case exceptions).
  • Higher leverage tiers often capped at $750k–$1M for new/limited experience borrowers.

Property Types

Eligible


  • SFR (1–4 units), condos (warrantable), townhomes.
  • Multi-family (2–4 unit), mixed-use case-by-case.
  • Ground-up construction (permitted).
  • Commercial (case-by-case).

Ineligible


  • Owner-occupied or second homes.
  • Manufactured/mobile homes (credit-based).
  • Raw land (credit-based, unless asset-based program allows 50% LTV).
  • Rural or highly unique properties (case-by-case).

Seller Contributions

Requirement


Typically not allowed in hard money/private money programs.

Note


If permitted, limited to closing costs only — cannot be applied to down payment or reserves.

Disclaimer – This matrix was published on 10/02/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

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Contact Loan Officer

Alexis Andrade
Mortgage Loan Officer
NMLS #2553405
alexis@sjmorganple.com