A hard money loan is a short-term, asset-based loan primarily used by real estate investors. Unlike traditional mortgages that depend heavily on credit scores and income documentation, hard money loans are secured by the value of the property, especially its After Repair Value (ARV)—what the property will be worth once renovations are complete.
These loans are ideal for investors who need quick access to capital to seize profitable opportunities—particularly in competitive markets, distressed sales, or tight closing windows.
Hard money loans are not designed for long-term homeownership—they’re built for speed, flexibility, and project-based financing.
Perfect for:
At AFC Mortgage Group, we specialize in hard money loans tailored for real estate investors:
Traditional lenders rarely approve distressed or non-livable properties—hard money fills that gap, giving investors a powerful tool to act fast and fund improvements.
Here’s what the process looks like with AFC Mortgage Group:
We review your deal based on:
If approved, we structure the loan and build a custom draw schedule based on your renovation budget. Draws are reimbursed after each phase of work is completed and inspected.
At closing, we fund the loan and place a lien on the property—this secures our position as the lender. You now officially own the property and can begin renovations.
As you make progress, you submit draw requests with supporting documentation. We inspect the work and release funds accordingly.
Q: Do I need good credit to qualify? No. While we do review credit, our decision is primarily based on the deal itself. Strong credit (760+) qualifies you for our best rate (10%).
Q: Do you fund renovation costs up front? No. Renovation costs are reimbursed after work is completed. You’ll receive funds according to the draw schedule agreed to at closing.
Q: What happens if I need more time than 6 months? We offer loan extensions when needed. Communication is key—let us know early if your timeline shifts.
Q: Can I use hard money for rental properties? Yes, especially for BRRRR investors. Many clients use hard money for acquisition and rehab, then refinance into long-term rental loans.
If you're interested in learning more about real estate investing, check out our Ultimate Real Estate Investing Guide here!
If you’re buying a turn-key property to live in—probably not. But if you’re an investor chasing undervalued deals, distressed properties, or quick flips, hard money is likely your best friend.
It’s not the cheapest option—but it’s often the fastest and most flexible, and that can make all the difference in a competitive market.
Call us at 203-452-9899
Email: gciams@afcmtg.com
Let’s turn your next deal into a win!
Become homeowners. AFC Mortgage Group will help you navigate the loan process, secure financing, and purchase your dream home.
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