When looking for a hard money lender in Virginia, compare their reputation, location, and loan terms.  Referrals from other investors are a great way to find hard money lenders or private lenders.   Most lenders attend real estate investor groups.  Including the Real Estate Investing Incubator Meetup Group.  Mortgage Brokers also work with direct lenders, Real Estate Agents, and Title Companies.  Finally, you can search for ‘hard money lenders near me’ online.  Make sure to check their online reviews and if they are local.

Most hard money lenders prefer a higher credit score BUT don’t have a minimum credit score requirement. If the credit score is lower they might require a higher downpayment, additional collateral or a cosignor.

A good interest rate for a hard money loan typically falls between 10% and 16%, depending on factors like loan-to-value (LTV) ratio, borrower credit score, cash available for down payment and experience. In addition to interest, borrowers should expect to pay points (2-5% of the loan amount), origination fees, and other transactional costs.

Yes, most hard money lenders in Virginia require a down payment, typically ranging from 10% to 30% of the property’s purchase price. The exact amount depends on factors like the lender’s risk tolerance, credit score, the loan-to-value (LTV) ratio and the borrower’s experience. In some cases, experienced investors or those securing properties well below market value may negotiate lower down payments or even 100% financing with additional collateral.

One of the greatest things about a hard money loan is the speed at which you can get one. Approvals are typically granted within 24 hours and settlements can take place in less than a week. Many loans can close within a few business days. Remember, however, that the lender does have due diligence and underwriting to conduct depending on the overall project. This may include: property inspections, order and inspect title work, and have lender documents drafted. This could take anywhere from a few hours to a week depending on the circumstances but, in a rush situation, 1-3 days is realistic.

Yes but keep in mind Hard money lenders (that lend their own funds) have no minimum credit score because they focus more on property value and overall real estate projects. Although lower scores may still qualify for a loan, you can expect higher rates and larger down payments if credit is low. The lender usually prioritizes the property value, borrowers equity and down-payment instead.

Most hard money loans require monthly payments, while others may have interest-only payments or even balloon payments at the end of the loan term.
Here are some common payment structures:

• Interest-Only Payments: Common for short-term loans (ex. fix and flip loans) where you pay just the interest each month and the principal at the end.
• Monthly Payments: Amortized loans where you pay both principal and interest monthly.
• Balloon Payments: You may pay only interest monthly and make a lump sum payment of the full principal balance at the end of the loan term.

The payment structure will depend on the lender and the specific loan agreement, so it’s important to clarify the terms before signing.

Yes, most hard money lenders prefer a higher credit score BUT they don’t have a minimum credit score requirement. However, if the credit score is lower the lender might require a higher downpayment, additional collateral or a cosignor.

Yes, most hard loans are structured up to a 12 month term but usually don’t have a prepayment penalty so you can pay the loan off at anytime. Look for this language written into your original term sheet with your hard money lender and then in your promisorry note outligning the terms of your loan.

Hard money lenders in Virginia typically charge an annualized interest rate and points (fee paid as a percentage of the loan amount). Expect to see interest rates for a hard money loan between 10% and 16%, depending on factors like loan-to-value (LTV) ratio, borrower credit score, cash available for down payment and experience. In addition to interest, borrowers should expect to pay points (2-5% of the loan amount), origination fees, and other transactional costs.

Most hard money lenders that use private capital don’t require a standard appraisal. However, they may use a broker price opinion (BPO), an internal valuation, or a comparative market analysis instead of a full formal appraisal. The focus is primarily on the property’s value rather than the borrower’s credit history. Banks and institutionally backed lenders typically require a full appraisal.