Hard Money Loans – How Much Can You Get?

A good question. And a tricky one. Because there are so many variables involved. Hard money loan minimums and maximums vary because of the nature of the loans. Since the money is coming from a private lender, it is largely up to the particular lender to decide what their minimums and maximums are. And they may change from situation to situation.


You should know, however, that there are usually minimums on hard money loans. So how do lenders decide what the minimum is going to be in your case? There are several factors they consider.

First, they look at the interest rate. For a higher rate, a smaller loan may be possible because of the money making versus risk ratio. Also, the investment itself may influence the minimum on the loan. If your reason for needing the money is a good one, then you may be able to get a smaller loan. If not, you may be stuck with finding another lender. Finally, a minimum may simply be determined by what the lender considers his time is worth. If you need a smaller loan, you can probably get it, but get accustomed to the fact that your search will take time.


As for a maximum, that also depends on several factors. One factor may be your relationship with the lender. The more you earn their trust, the more likely you are to get more money. Secondly, and most obviously, the resources of your lender are a factor. After all, they can’t lend what they don’t have. That’s why many borrowers go to the nation’s leading private money lenders, the Kennedy Fundings et al, who are able to close loans quickly, in a matter of days, and make loan amounts up to $100 million or more. Indeed, if your land collateral is great enough, and you establish a decent relationship with a Kennedy Funding or comparative company, you may even get significantly more.