Hard Money Apartment Financing

Apartment and Commercial Property Hard Money Loans

Hard money loans and private capital for the unique situations that call for them used to be more of a rarity, but as the market evolved and the amount of capital in it ebbs and flows, more and more situations may require hard money that may not have in the past. The benefit to true hard money loans on commercial real estate is that only the as-is value of the property is an underwritten component. This relates to faster closings and higher costs than traditional and agency financing.

In the past, borrowers have used hard money because of credit, legal, or financial issues that prevented them from obtaining financing through other means. Hard money financing in commercial real estate has also been used when a borrower needs a particularly fast closing because of a deadline, or because financing fell through on a property under contract. In general, hard money is versatile and still used every day for a variety of reasons. That said, hard money may not be your only option, and before applying for a hard money loan, you should know if you have any alternatives available.

2021 Sample Hard Money Loan Terms For Multifamily and Commercial Property

Size: $1MM and up

Term: 6 months to 3 years (extension options available)

Interest Rates: 12% +

Origination Fee: 3.00% - 5.00%

Amortization: Interest only (deferred payments occasionally available)

Maximum LTV: 65% of as-is value


  • Loan amount determined by the property value.
  • Fast closing process.
  • Limited borrower qualifications required.


  • Highest rates.
  • Highest closing costs.
  • Short period with a balloon payment.
  • Risk of losing property for a fairly small loan amount.
  • Full recourse.