Hard Money Line of Credit for Real Estate Investors
A hard money line of credit provides investors with revolving access to capital secured by real estate. Unlike traditional consumer HELOC programs, these structures are commonly used for business-purpose investing, renovation funding, and acquisition liquidity. You only pay interest on the amount you draw — not the full line — making the effective cost significantly lower than a full cash-out loan.
As a mortgage broker, we source hard money line programs based on leverage tolerance, property type, and speed of execution.
This program is currently structured for California properties due to state licensing requirements.
WHAT IS A HARD MONEY LINE OF CREDIT?
A hard money line of credit is a revolving credit facility secured by investment property. Funds can be drawn as needed during the draw period and repaid to restore availability.
These programs are typically structured around:
- Investment property collateral
- Business-purpose use
- Asset-based underwriting
- Flexible draw access
Hard money lines are commonly used by active investors who require fast liquidity.
HARD MONEY LINE OF CREDIT QUALIFICATION GUIDELINES
Typical parameters may include:
- Investment property required
- Loan-to-value up to 60% (LTV/CLTV)
- Asset-based underwriting
- No traditional income documentation required in many cases
- Entity ownership permitted
Guidelines vary by lender and property profile.
PROGRAM STRUCTURE
Hard money line structures may include:
- 1st or 2nd lien position
- Revolving draw period (1–3 years; extension available prior to maturity)
- Interest-only payment structure
- Business-purpose documentation
- No prepayment penalty or early closure fee
- $5,000 minimum per draw; maximum 2 draws per month
- $100 per draw fee
We structure hard money lines around liquidity flexibility and portfolio growth strategy.
HARD MONEY LINE OF CREDIT TERMS
Typical loan parameters may include the following. Guidelines vary by lender and borrower profile.
| Feature | Details |
|---|---|
| States Allowed | California Only |
| Loan Type | Business-Purpose Hard Money LOC |
| Lien Position | 1st or 2nd Position |
| Loan Term | 1–3 years (extension available) |
| Starting Rate | From 10.99% (rates subject to change) |
| Points | Starting at 2.0% (paid once for initial term) |
| Loan Amount | Up to $3M (up to $5M case-by-case) |
| Combined LTV | Up to 60% |
| Documentation | No DTI or tax returns required |
| Occupancy | Non-owner residential or commercial; primary residence permitted for business purpose |
| Prepayment Penalty | No prepayment penalty or early closure fee |
| Draw Minimum | $5,000 per draw |
| Draw Fee | $100 per draw |
| Funding Timeline | Often faster than traditional financing |
STRATEGIC USE CASES
Hard money lines of credit are commonly used for:
- Renovation funding
- Acquisition deposits
- Bridge liquidity
- Portfolio expansion
- Short-term capital deployment
These structures provide flexibility that traditional refinance transactions may not offer.
PROCESS OVERVIEW
- Property equity review
- Collateral valuation
- Line approval and documentation
- Funding and draw activation
- Ongoing draw management
Timelines vary depending on lender guidelines and documentation.
IMPORTANT CONSIDERATIONS
- Rates are typically higher than consumer HELOC programs
- Business-purpose use only
- Collateral risk should be evaluated carefully
- Shorter draw periods common compared to traditional HELOCs
We help align hard money line structuring with disciplined investment execution.
Frequently Asked Questions
No. Hard money lines are typically business-purpose and secured by investment property.
Hard money lines may close faster than traditional bank programs.
Often asset-based underwriting is used instead of full income verification.
Yes. Renovation funding is a common use case.
Yes — a primary residence may be used as collateral if the line is secured for business purpose. Consumer-purpose loans on primary residences are not eligible.
Yes. During the draw period, funds can typically be reused up to the approved limit. Lines may be extended with approval prior to maturity.
HARD MONEY LINE OF CREDIT EXAMPLE
Ethan owned multiple rentals in San Diego and needed fast acquisition capital.
Credit Line Amount: $600,000
Secured By: 3 rental properties
Combined LTV: 58%
Term: 24-month revolving
Interest: Fixed at 10.99%
Credit Score: 712
Westpark Loans structured a secured revolving line that closed in 18 days, allowing three acquisitions within six months.
Client Testimonials
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Broker Advantage Statement
Hard money line programs vary by lender, collateral requirements, and leverage limits. As a mortgage broker, we compare available structures to align capital access with investment strategy.