Hard Money Loans in Elgin, TX

What a hard money loan is, and when it fits

A conventional loan is underwritten mostly on you: tax returns, debt-to-income ratio, credit history. A hard money loan is underwritten mostly on the property. We look at the purchase price, the condition, the rehab budget and what the property should be worth once the work is done. That shift is why these loans can close on houses with a gutted kitchen, a failed foundation inspection or title that just cleared probate.

The tradeoff is cost and time. Hard money carries a higher rate and upfront points, and terms usually run months, not decades. It is the right call when the deal is good, the timeline is tight and you already know how you will pay it off, either by selling or by refinancing into long-term financing.

Before anything is signed, you get a written term sheet that lists the rate, every point and fee, the draw process and the payoff terms. If a number is going to change, you hear why first.

What our hard money financing covers

Purchase funding

We lend against the acquisition price or the as-is value, whichever is lower. Your down payment covers the gap, and the term sheet shows exactly how that number was reached.

Rehab funds held in a draw account

Renovation money is not handed over at closing. It sits in reserve and is released in stages as work is completed and verified, which keeps the budget tied to real progress on the property.

After-rehab value underwriting

For fix-and-flip and rehab-to-rent deals, we review your scope of work and comparable sales to estimate the after-rehab value. That figure caps the total loan so you are not overleveraged when the project is finished.

Interest-only payments

Monthly payments typically cover interest only, which keeps carrying costs lower while the property is not producing income. Principal is paid at sale or refinance.

Exit planning with your loan officer

We talk through how the loan ends before it starts. If you plan to hold the property, we can map out a refinance into a conventional loan, or a bank statement loan if your income is self-employed.

Signs a hard money loan is the right tool

• The property will not pass a standard appraisal

  Missing systems, a damaged roof or an unfinished addition can stop a conventional or FHA loan cold. A hard money loan is written with that condition in mind.

• You are competing against cash buyers

  Sellers of distressed property often want a short closing window and few contingencies. Asset-based underwriting lets you make an offer that looks more like cash.

• Your returns understate your cash flow

  Investors who write off heavily often show little taxable income. Because we lean on the property and your plan, that paperwork carries less weight here.

• You have a clear exit within months

  If you can show a sale or refinance date backed by numbers, the short term works in your favor instead of against you.

How a hard money loan moves from call to closing

1. 1

   Phone conversation and application

   You walk a loan officer through the address, the price, your rehab budget and your exit. We start the loan application on that call and tell you what documents we need.

2. 2

   Property and plan review

   We review the scope of work line by line, pull comparable sales and check your experience with similar projects. A thin bid or an optimistic resale price gets flagged now, not after closing.

3. 3

   Written term sheet

   You receive the loan amount, rate, points, draw fees, extension terms and any prepayment conditions in writing. Nothing is added later that is not on that sheet.

4. 4

   Appraisal, title and closing

   We order the valuation and title work, then close at our office or with a title company. Speed depends mostly on title and appraisal turnaround, so we keep you updated on both.

5. 5

   Draws and payoff

   As each phase finishes, you request a draw, we verify the work, and funds are released. When you sell or refinance, the loan is paid off from proceeds.

Why hard money terms differ from one deal to the next

A hard money lender prices each loan on how much risk the deal carries, and most of that risk lives in the property and the plan for it. Two investors buying similar houses around Elgin can get different rates and points because their leverage, experience or timelines differ. Your written quote shows which of these factors shaped your number, so you can change the deal if you want better terms.

Leverage and down payment

Every extra dollar you put in shrinks the lender's exposure. Less leverage usually earns a lower rate and fewer points.

Projects you have finished

Documented flips or rentals lower the risk on the next one. A first-time investor can still qualify, though the pricing will reflect the inexperience.

Property condition and scope of work

Paint, flooring and fixtures carry less risk than a structural rebuild. A bigger budget also means more draw inspections, and each inspection may have its own fee.

Term and extension options

A six-month loan prices differently than a twelve-month one. When an extension is available, its cost is written on the term sheet from the start.

Points and prepayment conditions

Origination points are a percentage of the loan amount, collected at closing. Some loans carry a minimum interest period, and we put that in writing before you commit.