Hard-Money second mortgages are always based on real property collateral. There are two conditions where borrowers are seeking hard-money second mortgages. The first condition is when borrowers are dealing with a recent decline from a traditional bank. The borrower may still qualify for a hard-money second mortgage. In this case if the property has enough equity, it can be used as collateral. The second condition is more of an investment. Property and real estate investors looking to purchase property and sell it quickly for profit use hard-money loans. The recent surge in flip flop properties has increased the demand for hard-money funding. It’s a fast source of funding for short duration mortgages.

It’s no secret, hard-money interest rates are higher compared to traditional property mortgages. The higher rates are due to the increased amount of risk associated with the property conditions. No matter which hard-money lender is selected they each have lending criteria. There may also be variable costs to the borrowers in the form of transaction fees. Because hard-money loans are based on the property’s value, the current market value is important to qualify for the loan. The borrower’s credit score and incomes are still part of the evaluation process.

The first step is finding a reputable hard money lender. The second step involves understanding the financial services and benefits available to borrowers. Here’s a list of the top 5:

Top 5 Hard Money Lenders:

  • Hard-Money Companies
  • Lending Criteria
  • Tax Deductibles
  • Project Financing
  • Regional Rates

Hard Money Bankers

Hard-Money Bankers are customizing the loan structures and terms to fit the borrower’s deal. As direct lenders, borrowers can save money with this lender. There are no additional mark-ups and interest and lenders fees offered are lowered. A tip when working with a lender; a borrower should have a good equity position for the loan. Borrowers gain the equity position when the property has a large equity according to the current market value or the borrower can put down a large amount against the loan.


  • No middle mark up
  • Direct funding with lower costs
  • Fast and flexible terms

Vantex Capital

Vantex Capital Group offers long term loans with no prepayment penalties. They’ve taken into consideration the stringent lending criteria and focus on getting borrower’s approved. Borrowers refinancing will need documentation to show the ability to make the monthly payment. Unlike many hard-money lenders, Vantex Capital is offering financial services to all citizens. If you meet these requirements, financing hard-money with this lender may be your solution.


  • Recent credit problems
  • Employment Instability
  • Not a US citizen

Nationwide Mortgage

Nationwide offers borrowers the ability to obtain fixed rate 2nd mortgages. This new loan remains separate from the property’s first financial obligation. It’s a solution for homeowners seeking fair interest rates, while taking advantage of the tax deduction. As an online marketplace, Nationwide has the ability to service a borrower’s financial needs anywhere in the nation.


  • Refinancing loans
  • Financing with good and bad credit
  • Home equity tax deduction

MAE Capital

MAE Capital is matching borrowers in need of fast financing with the right lenders. The interest rates vary depending on the borrower’s credit history. And the property value must meet the lender’s defined standards. The financial services include 2nd mortgage refinancing, private or equity loans funding. MAE Capital is ready to help borrowers when traditional bank loans are not available. These lenders are prepared to finance single family homes, construction and land development.


  • Single family, construction projects and land
  • Close in 7 business days
  • More than traditional banking

Sun Pacific Mortgage

Hard-money lenders in California generally have lower rates than other parts of the country. The reason is the increased competition among money lenders in this region. It’s good news for the borrower because there’s a chance of getting lower rates and fees. This region is also known for its rate of growth when it comes to employment reducing the risk for lenders. First time buyers looking to refinance and renovate may find a better solution here.


  • Ability to repay
  • Refinance existing loan
  • Cash out for repairs


If you’re considering hard-money financing it’s essential to work with the right lending company. They can help rationalize the choices between the best or most affordable property loans. For most second home mortgages the higher interest rates may be the cost to getting a loan funded faster.