top of page




Understanding Hard Money Loans at Stratton Equities

Stratton Equities is a leading Nationwide Direct Hard Money Lender, we have an array of loan programs that are designed to meet all your mortgage needs. It doesn't matter what type of real estate investor you are and or what your loan scenario entails, we have the best hard money lender solution for your investment property.

A Hard Money Loan is among the most popular programs that real estate investors utilize for their investments.


Hard Money Loans are for real estate entrepreneurs looking for financing on their investment properties. One of the hard money requirements is that the loan program cannot be used for owner-occupied properties, this is due to their high interest rates and costs.

This type of private money loan is a loan-to-value loan product, meaning that the loan is based on the borrower’s assets rather than credit history, and are generally capped at 75% of the asset’s value. The approval process is quick and easy as there are few regulations and no minimum FICO score required.

Funding from a hard money loan can be received in as little as 2-3 weeks from applying.

Looking for Hard Money 101? Check out our Hard Money Lenders for Beginners and calculate your loan overview in our hard money loan calculator.

What is a Hard Money Loan Exactly?

Generally accepted, a Hard Money Loan (is an asset-based loan, which means the financing is based on the loan-to-value (LTV) of the Asset. Unlike the Fix and Flip Loan, it doesn’t go through full underwriting and there’s no minimum FICO requirement for the borrower, as it doesn’t have many guidelines and criteria.

This type of loan doesn’t have as many restrictions as one might think considering that it’s just money, so no more having to worry about bankruptcies, foreclosures, collections, etc.

The majority of prospective borrowers are private individuals or investors looking for better financing options on their investment property that they cannot obtain with a traditional lender. The only options available for real estate investors are to reach out to conventional institutions (banks), mortgage companies, and direct private money lenders.

However, if you are a real estate investor with bad credit, many of the traditional funding sources would not be valid options. There are multiple loan options out there for personal finance or real estate financing, and many of them heavily base whether or not they will give someone a loan based on their credit score. Thankfully, this isn’t true for Hard Money Loans.


Most banks and mortgage companies do not offer mortgage loan programs for individuals with low credit scores. Fortunately, in the world of private money lenders, a Hard Money Bridge Loan is a perfect option to receive funding and even fix your credit score.

Due to the lack of guidelines and underwriting, a true Hard Money Loan is generally capped at 75% LTV or less. For example, let’s say you have a home worth $1M, if you want $500K against it (50% LTV), you’re able to receive the money within 1-2 weeks (from the day of application), commonly as a first lean position - because it’s just money. It’s normally in the form of a Bridge Loan, which is short term financing in a period of 12-24 months.

Ready to become a Real Estate Investor and work with one of the best hard money lenders in the industry?

Apply Now with Stratton Equities! Find out more.​

Nationwide Hard Money Loan Overview

  • Rates Starting at 9.99%

  • Loan Amount: $100K – $5M

  • LTV Ratio: Up to 75% LTV

  • Blanket Loan Options Available

  • Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse

  • Fixed rates/Adjustable

  • 9-24 Month Terms

  • Interest Only Payments

  • Purchase, Refinance, or Cash Out

  • Foreign Nationals Eligible

  • No Prepayment Penalty Option Available

Why is Hard Money Beneficial for Investment Properties?

One of the reasons why Hard Money Loans are only used for investment properties is due to the high-cost regulations and predatory lending – you can’t put such high interest rates and costs on an owner-occupied property.


In certain states, there are non-judicial foreclosure laws, which allow a Hard Money lender to get their money back quickly if the borrower defaults on the mortgage.

These foreclosure laws make the lender more comfortable doing high-risk loans, usually, the money is not sold on the secondary market – the lender holds the note, and they don’t sell the paper.


If you want to purchase a real estate investment property and are worried about getting approved for a traditional mortgage loan, then a Hard Money Loan or a Fix and Flip Loan might be the right option for you!


Both are asset-based loans with a quicker and easier approval process than traditional loans. These loans use private money to fund investment properties and are higher-risk loans. 


Working with Stratton Equities can help you determine the best loan for your needs and get you on the path to approval today!

Ready to become a Real Estate Investor with Stratton Equities? Find out more.

​Hard Money Loan vs. Traditional Mortgage

There are several differences between a hard money loan and a conventional mortgage loan. Unlike a traditional lender, Hard money loan lenders work with hard money loan products because they are asset-based loans; it doesn’t go through full underwriting and as it doesn’t have many guidelines and criteria, there’s no minimum FICO requirement for the borrower.


An asset-based loan is defined as a NON-QM Mortgage loan product where the financing is based on the loan-to-value (LTV ratio) of the asset. This type of loan doesn’t have as many restrictions as a traditional mortgage, it’s just money, so no more having to worry about bankruptcies, foreclosures, collections, etc.

The biggest difference between conventional mortgages and hard money loans, is that hard money loans are for investment properties ONLY. This is why prospective real estate investors or experienced real estate entrepreneurs work with hard money loan lenders on their investment property loan scenario.

Given that these loans are not based on the borrowers' credit scores but on the value of the investment property, hard money lenders can finance deals for borrowers who are unable to get conventional financing. 

If a borrower has less than optimal credit, they can obtain a hard money loan using the value of the investment property as collateral, which is not possible with a conventional mortgage. 

Working with a Hard Money Lender will allow borrowers to have their loan approved in half the time a traditional bank loan (conventional mortgage) takes, with less underwriting and guidelines, allowing borrowers to quickly purchase high-demand investment properties.

Hard Money Loan Requirements

Applying for a Hard Money Loan is a fast and easy process, however, there are a few requirements before applying with your loan scenario. 


First, find an investment property, enter the breakdown of the loan scenario in our hard money loan calculator,and reach out to a hard money loan lender to assess your loan scenario.


Hard money loan lenders, such as the Nationwide Direct Private Money Lender Stratton Equities, can provide a Hard Money Loan for the following property types:​


- Single-Family

- Mixed-Use

- Multi-Family

- Commercial

Find out more about Hard Money Loans and Why You Should Work with a Hard Money Lender on our latest blog.


​After applying for a loan, the borrower works directly with an experienced loan officer to discuss their real estate investment dreams and how a Hard Money Loan can help them achieve their goals.


Apply Now and close in three weeks or less!

You found the perfect investment opportunity, let's get started!

bottom of page