Hard Money Lenders for Fix and Flip with Low Rates: Top 5 in 2024

Securing the right financing is the engine that drives any successful fix-and-flip project. Traditional banks rarely move fast enough for a competitive off-market deal, and their rigid underwriting often fails to see the value in a distressed property. That’s where hard money lenders for fix and flip with low rates become the clear choice for experienced investors and determined newcomers alike. The upfront costs might seem higher than a conventional mortgage, but the speed, flexibility, and deal-specific structure can turn a marginal flip into a six-figure payday. If you’re new to this type of financing, our guide on fix and flip loans explains the fundamentals in detail.

This guide cuts through the noise. You’ll get a direct comparison of top lenders who consistently close loans under 10 days, a breakdown of real-world rates and fees, and a step-by-step playbook for funding your next flip without leaving profit on the table. If you’re ready to stop chasing deals you can’t fund and start competing with cash buyers, read on.

What Are Hard Money Loans for Fix and Flip?

A hard money loan is a short-term, asset-based financing tool secured by real estate. Unlike a bank loan that revolves around your credit score and tax returns, a hard money lender focuses almost entirely on the property’s after-repair value (ARV) and your acquisition price. For a fix-and-flip investor, the loan usually covers 70% to 90% of the purchase price and up to 100% of the renovation costs, provided the total loan stays under a maximum loan-to-ARV ratio—typically 65% to 75%.

Key characteristics that separate these loans from traditional financing include:

• Term length: Usually 6 to 24 months, matching the typical flip timeline.
• Interest-only payments: Most borrowers pay interest monthly, preserving cash for rehab, with the principal due upon sale or refinance.
• Speed to close: A seasoned lender can fund in 5 to 10 business days after receiving a full application.
• Rehab draw structure: Funds for renovation are released in stages after inspections, not as a lump sum at closing.

When you hear investors talk about hard money lenders for fix and flip with low rates, they aren’t comparing these rates to a 30-year fixed mortgage. They’re comparing them to other hard money offers. A “low rate” in this space often falls between 9.5% and 11.5% on the interest portion, with 1.5 to 3 points in origination fees. The cheapest option isn’t always the best—a lender that closes reliably in 7 days at 10.99% often beats one that advertises 8.5% but drags out the process for 30 days and loses you the deal.

Top 5 Hard Money Lenders for Fix and Flip with Low Rates in 2024

I’ve vetted dozens of lenders on rate transparency, speed of execution, and actual borrower experiences. Here are five that consistently deliver competitive pricing and proven closing power for active flippers.

1. Kiavi (formerly LendingHome)

Kiavi has built a technology-driven platform that often results in faster closings and sharper rates for experienced investors. They offer fix-and-flip loans in 26 states and Washington, D.C.

• Rates: Starting at 9.25% for well-qualified repeat borrowers, with points ranging from 1.5 to 2.5 depending on the deal.
• Loan amounts: $75,000 to $2 million, with up to 90% of purchase and 100% of rehab.
• Speed: Average close in 7 to 10 days. Same-day pre-approval after document upload.
• Standout feature: Their online dashboard makes draw requests seamless, and they don’t require a minimum FICO score—though rates improve with a score above 660.

2. Capital Fund 1

A direct lender based in Arizona that lends in eight states, including Texas, Colorado, and Georgia. They’re known for competitive rates and a straightforward process for first-timers.

• Rates: As low as 9.49% with 1.5 to 2.5 points.
• LTV/ARV: Up to 75% of ARV, covering 90% of purchase and 100% of rehab costs.
• Speed: They’ve funded loans in as little as 24 hours after receiving a clean appraisal.
• Standout feature: Zero prepayment penalty on all loans. You can sell or refinance without extra cost, which boosts net profit on fast flips.

3. RCN Capital

A national lender with a strong reputation for funding deals that other lenders pass on. They’re especially active in Florida, California, and the Northeast.

• Rates: 9.75% to 10.99%, with origination points from 2 to 3.
• Loan amounts: $50,000 to $2.5 million.
• Speed: Average 10 days from contract to close.
• Standout feature: They offer long-term rental loans as well, so if a flip becomes a rental hold, you can refinance in-house without a new title process.

4. LendingOne

LendingOne focuses on professional real estate investors and offers fix-and-flip bridge loans with competitive rates.

• Rates: Range from 9.49% to 11.49%, with 1.5 to 2.5 points.
• Leverage: Up to 80% of the purchase and 100% of rehab up to 75% ARV.
• Speed: Funding in 7 to 14 days on average.
• Standout feature: They provide a dedicated loan specialist, which can be invaluable if you’re juggling multiple projects. They also give a 5% rate reduction after your third deal.

5. Lima One Capital

Lima One is a go-to for investors doing both fix-and-flip and new construction. They have a strong product for multi-family flippers.

• Rates: Starting at 9.99%, with points around 2.
• Loan amounts: $100,000 to $3 million.
• Speed: Typical close in 10 to 14 days.
• Standout feature: Their Forth program combines purchase, rehab, and permanent rental financing into one initial loan, reducing closing costs if you decide to hold the property.

Quick Comparison Table:

Lender	Starting Rate	Points	Typical Close	Max LTV/ARV
Kiavi	9.25%	1.5-2.5	7-10 days	75%
Capital Fund 1	9.49%	1.5-2.5	5-10 days	75%
RCN Capital	9.75%	2-3	10 days	75%
LendingOne	9.49%	1.5-2.5	7-14 days	75%
Lima One Capital	9.99%	2	10-14 days	75%

Rates shift frequently based on the Fed funds environment and property type. Always request a loan estimate specific to your deal and lock the rate as soon as you go under contract. Use our hard money loan calculator to compare total costs side by side.

How to Find Hard Money Lenders for Fix and Flip with Low Rates

Getting quoted the lowest rate doesn’t hinge on one magic metric. Lenders price risk across multiple dimensions. Understanding that risk model lets you position yourself for better terms.

• Shop within your property class: A lender specializing in single-family homes in suburban Phoenix might offer rates 0.5% to 1% lower on those deals than a generalist lender who also does commercial land loans. Ask about their sweet spot before applying.
• Build a track record: First-time flippers often face rates 1% to 2% higher and an extra point or two. You can offset this by bringing a larger down payment (25% to 30% versus 15%) or by partnering with an experienced co-signer. After closing three to five successful flips with the same lender, renegotiate your rate.
• Present a watertight scope of work: Lenders want to see a detailed, line-item renovation budget that makes the ARV realistic. When you walk in with contractor bids, a timeline, and proof of cash reserves for overages, your loan becomes less risky on paper and rates can drop by 0.25% to 0.5%.
• Use a local, reputable lender: National funds may have slightly higher overhead. A local lender who knows your market’s comps can sometimes underwrite deals more aggressively. Attend local Real Estate Investors Association (REIA) meetings and ask about hard money lenders for fix and flip with low rates that other members have used successfully.
• Compare using the total cost of capital: A loan at 9.99% with 2 points and no prepayment penalty can be cheaper than a loan at 9.49% with 3 points if you plan to sell in four months. Run the numbers both ways—our fix and flip profit calculator can help you see the full picture.

Understanding Fix and Flip Loan Costs: Interest Rates, Points, and Fees

It’s easy to get tunnel vision on the interest rate. But flips are short-term. Fees, points, and prepayment penalties often outweigh the rate difference.

The Real Math: A $200,000 Flip Example

Imagine you buy a property for $200,000 and need $75,000 in rehab. ARV is $375,000. You’re comparing two loans, both covering 90% of purchase and 100% of rehab up to 75% ARV. Your total loan is $255,000.

Lender A: 10.5% interest, 2 points (2% origination), no prepayment penalty, $1,200 in processing/underwriting fees. Lender B: 9.75% interest, 3 points, 6-month prepayment penalty (six months’ interest if you pay off early), $995 in fees.

You plan to sell in 5 months. With Lender A, monthly interest-only payments are $2,231.25, total interest over 5 months: $11,156.25. Upfront cost: points $5,100 (2% of $255,000) plus $1,200 fees = $6,300. Total cost of capital: $17,456.25.

With Lender B, monthly interest is $2,071.88, total interest over 5 months: $10,359.38. Upfront cost: points $7,650 (3% of $255,000) plus $995 = $8,645. But you held the loan less than 6 months, so prepayment penalty triggers. That’s typically six months’ interest: $12,431.25 added on. Total cost: $10,359.38 + $8,645 + $12,431.25 = $31,435.63.

Lender A’s “higher rate” loan saves you nearly $14,000. Always ask about prepayment penalties and balloon payment structures. Hard money lenders for fix and flip with low rates might hide costs in the points or prepay clauses.

Additional Costs to Watch

• Draw inspection fees: Some lenders charge $150-$300 per draw inspection. If you plan 7 draws, that adds up.
• Loan extension fees: If your flip runs long, extensions can cost 0.5% to 1% of the loan amount per month.
• Legal/document prep: Often $750-$1,500.
• Broker fees: If you go through a broker, they may tack on 1-2 points on top of the lender’s fee.

How to Get a Fast Close: Streamlining the Loan Process

Time kills deals. A pre-approval letter from a hard money lender can put you on par with cash offers, but you still need to move swiftly after contract acceptance.

Pre-Work That Cuts Days

• Have your entity ready: Most lenders require an LLC. Set one up now and have your operating agreement, EIN letter, and bank account statements ready.
• Gather three months of liquid asset statements: Showing proof of funds for the down payment and six months of interest payments. Keep them current.
• Prepare a sample scope of work: Even before you find the property, build a template showing how you break down rehab costs. When you send the actual scope, the lender doesn’t have to decipher it from scratch.
• Line up your contractors and get bid sheets: Some lenders will underwrite faster if they see signed bids from licensed contractors.

The 7-Day Close Blueprint

1. Day of acceptance: Immediately send the signed purchase agreement, property photos, scope of work, and contractor bids to your lender.
2. 24 hours: Order the appraisal / broker price opinion (BPO). Suggest three local agents to the lender for speed.
3. 48-72 hours: Underwriter reviews your credit, background, and entity docs. Respond to conditions within hours.
4. Day 5: Appraisal received. Lender finalizes loan amount based on ARV.
5. Day 6: Loan docs issued. Review with a real estate attorney.
6. Day 7: Sign and notarize. Funds wire to the title company.

This pace requires a lender with in-house underwriting and your full cooperation. The best hard money lenders for fix and flip with low rates will have a dedicated processor who texts or calls you directly, not a generic email queue.

Mistakes to Avoid When Choosing a Hard Money Lender

Even seasoned flippers get tripped up. Here are the most common pitfalls and how to steer clear:

• Focusing solely on the interest rate – As our $200,000 example showed, points and prepayment penalties can make a “cheap” loan shockingly expensive. Always calculate the total cost of capital.
• Not verifying the lender’s track record – Ask for a list of recently funded deals in your market. A lender that constantly fails to close costs you earnest money and reputation. Read online reviews on sites like BiggerPockets and the Better Business Bureau.
• Overlooking the draw process – Slow draws kill your timeline. Clarify the draw schedule, inspection turnaround, and how quickly funds are released. Delayed rehab = holding costs and lost profit.
• Accepting a variable or adjustable rate – Stick with fixed-rate loans for flip projects. Rate hikes in the middle of a flip can derail your budget. Insist on a rate lock valid for your expected timeline.
• Not planning an exit – Have a backup plan if the property doesn’t sell fast. A lender that offers an extension or easy refinance to a rental loan (like RCN Capital or Lima One) can save you from a forced sale or default.

Frequently Asked Questions

What credit score do I need for a fix and flip hard money loan?

Hard money lenders for fix and flip with low rates prioritize the property’s ARV over your personal score. While many don’t enforce a hard minimum, borrowers with scores above 600–620 typically access the best rates and terms. Very low scores can still be approved but may require a larger down payment or higher interest.

How much down payment is required for a fix and flip hard money loan?

Expect to bring 10% to 30% of the purchase price. The exact amount depends on the lender, your experience, and the deal’s loan-to-ARV. First-time flippers often need 25% or more, while experienced investors can secure up to 90% financing on the purchase. Rehab costs are frequently covered 100% by the lender.

What’s the difference between a hard money loan and a private money loan?

Hard money lenders are licensed businesses with structured processes and higher fees, while private money lenders are individuals or small groups lending their own capital with more flexible terms. Both are hard money lenders for fix and flip with low rates in the practical sense, but private lenders may offer even faster closes if you have a personal relationship.

Can I use a hard money loan to buy a property at auction?

Yes. Many hard money lenders specialize in auction purchases. However, you need to have the lender fully vetted and pre-approved before the auction because you’ll need to close with cash or a cash equivalent within 24-48 hours. A pre-approval and proof of funds letter are essential.

Are hard money fix and flip loans interest-only?

Almost all fix and flip hard money loans are structured as interest-only during the term, with the principal balance due at sale or refinance. This preserves cash for renovations and holding costs. Verify with your lender that there’s no prepayment penalty so you can pay off the principal early when you sell.

How can I get the lowest rate on a hard money fix and flip loan?

Build a track record, bring a larger down payment, present a detailed scope of work, and shop multiple lenders. Using a hard money loan calculator to structure offers and comparing total cost of capital will also put you in a stronger negotiating position.

---

Ready to fund your next flip? Start by getting pre-approved with two or three of the lenders above and compare real loan estimates against your deal numbers. The right hard money lenders for fix and flip with low rates don’t just finance your project—they become a strategic partner that helps you close faster and net more profit.