Refinance Your Hard Money Loan
Stop paying 10 to 12 percent on a clock that never stops. Once the property is stabilized, refinance into long-term DSCR debt, drop your rate from day one, and pull equity back out for the next deal.
From 10-12% to as low as 5.75%
5.75%
Rate From
75-80%
Cash-Out LTV
Often none
Seasoning
5-14 days
Close In
The Hard Money Exit, in Three Steps
Stabilize and lease
Finish the rehab and get the property rented. The rent is what qualifies the new loan.
Refinance into long-term DSCR
We pay off the hard money note and replace it with 30-year fixed (or interest-only) financing at a far lower rate.
Cash out and redeploy
Pull equity up to 75-80% LTV and roll it straight into the down payment on your next acquisition.
Why Get Off Hard Money Now
Hard money does its job: it gets you into a deal fast when speed matters. But it is expensive money on a short fuse. At 10 to 12 percent with a balloon coming due, every month you hold it eats into your return, and the clock pressures you into decisions you would not otherwise make.
The moment the property is stabilized and leased, that pressure is unnecessary. We refinance the hard money balance into a long-term DSCR loan that qualifies on the property's rent - no tax returns, no W-2s, no DTI. Your rate drops immediately, your payment becomes predictable, and the balloon disappears.
The best part is the cash-out. On a completed value-add or BRRRR, the rehab has created real equity. We let you pull that equity back out up to 75 to 80 percent LTV - often without waiting through full seasoning - and roll it straight into the down payment on your next acquisition. Because we have no loan-count cap, you can run this cycle as many times as you have deals. That is how a couple of flips turns into a portfolio.
From 11% bridge to 6.5% long-term, cash out to the next deal
An investor bought a duplex with an 11 percent hard money loan, renovated it, and leased it at $4,200 a month combined. We refinanced into a 30-year DSCR loan at 70 percent LTV, paid off the bridge, dropped the rate to the mid 6s, and returned enough cash for the down payment on the next property - closing in 13 days with no tax returns.
Illustrative scenario based on typical program terms. Every deal is priced individually.
Hard Money Refinance FAQ
How do I refinance a hard money loan into a DSCR loan?
Once the property is stabilized and rented, we refinance the short-term hard money note into a long-term DSCR loan. Qualification is based on the property's rental income, not your personal income. Most refinances close in 5 to 14 days.
Do I have to wait 6 months to refinance out of hard money?
Not always. Standard seasoning is 6 to 12 months, but on a completed value-add or BRRRR deal where the rehab is done and the property is stabilized, we can often refinance without the full seasoning wait.
How much can I cash out?
Up to 75-80% LTV depending on the program. The common play is to refinance the hard money balance, pull the equity created by the rehab back out, and use it as the down payment on your next acquisition - all without a taxable event, because loan proceeds are not income.
Will my rate actually go down?
Yes. Hard money typically runs 10 to 12 percent. Long-term DSCR rates currently start around 5.75 percent on strong files, so the drop from short-term bridge pricing to permanent financing is significant and immediate.
What documents do you need to refinance?
Minimal. No W-2s, no tax returns, no DTI. We look at the property's rent, an appraisal, your credit, and the entity. These are business-purpose loans that qualify on the asset.
I have several hard money loans out. Is there a limit?
No. We have no cap on the number of loans, so you can refinance multiple bridge notes into long-term debt and keep recycling capital into new deals.
Get off the hard money clock
Refinance into long-term debt, lower your rate, and pull cash out for the next deal. Minimal docs, fast close, no loan caps.