Hard money and private money both fund investment property based on the deal instead of your income. The difference is in the details: private money lenders like Freedom Legacy Lending usually offer lower costs, clearer credit standards and a wider range of financeable properties than traditional hard money.
What they have in common
Both are business purpose loans on non owner occupied property. Both close faster than a bank and focus on the property, the plan and your experience instead of tax returns and debt to income ratios.
Where they differ
- Cost. Traditional hard money often carries higher rates and more points. Our fix and flip and bridge rates start at 10.5%, and DSCR rental rates start at 7.5%.
- Credit standards. Hard money can be loosely defined and inconsistent. We publish clear minimums, such as a 660 credit score for DSCR and bridge loans.
- What gets financed. Many hard money lenders stop at short term rehab loans. We also offer 30 year DSCR rental loans, portfolio loans and ground up construction, so you can stay with one lender from purchase to long term hold.
Which one do you need?
If you are buying, renovating, building or holding rentals and want speed without paying hard money prices, private money is usually the better fit. Compare our programs or send us your deal.
Questions
Is private money the same as hard money?
They are similar, since both are asset based business purpose loans, but private money from a lender like us typically costs less and comes with clearer credit standards.
Are private money loans faster than bank loans?
Yes. Most of our deals fund in about three weeks.