What is a Cash-Out Hard Money Loan?
5 minute read
June 23, 2022


Cash-out hard money loans are a simple way to access the equity locked up in a home or investment property.

This cash can then be used for anything from renovations or remodeling to purchasing another investment property.

Read on to learn more about this type of loan, how “hard money” is different from other types of lending options, and how to find a reputable hard money lender.

What is a cash-out refinance hard money loan?

Hard money loans come from hard money lenders. 

Instead of getting a loan from a bank or other financial institution, a hard money lender is an individual, investor, or funding group that lends money to borrowers.

Hard money vs. traditional lending

While traditional lenders have strict requirements to follow based mostly on a borrower’s personal credit, a hard money lender is far more interested in common sense and the overall merits of the deal. 

In other words, does the deal make sense for them? If the answer is yes, they’ll do it.

Hard money lenders can provide funding for a wide range of scenarios, which also includes refinancing loans.

Marquee Funding Group always looks out for a borrowers best interest and can help borrowers tap into their home equity without requiring borrowers to payoff their good low rate mortgages. Marquee can fund cash out loans in 2nd, 3rd and even 4th position.

In these modern times of resign interest rates, Marquee Funding’s 2nd and 3rd mortgage products can offer borrowers a way to tap into their home equity while still keeping their global interest expense below market rates.

What’s your loan scenario?

How do cash-out loans work?

Cash-out refinance hard money loans are included in these refinance options. 

With a cash-out loan, a hard money lender will structure a new loan that’s larger than the original loan, allowing the borrower to tap into precious equity in the property.

The difference in cash is then paid to the borrower, who can use these funds for any project or for any purpose of their choosing.

What is equity?

The equity in your property is equal to the difference between the property’s value and what you owe on the loan.

While borrowers don’t take out this full amount with a cash-out loan, lenders allow you to take out a percentage of it, calculated by the loan-to-value (LTV) ratio.

Depending on the amount of equity in your property, this can be a significant amount of funding. With a cash-out hard money loan, you can use these funds in whatever way you choose.

Most often, it is used for renovations, building projects, or to purchase another investment or fix-and-flip property.

What’s your loan scenario?

How does hard money refinancing work?

The main difference with hard money refinancing is the simplicity and speed of the lending process.

A traditional cash-out refinance involves extensive income and tax documentation, a full credit check, debt-to-income evaluation, and more.

The entire process can take several weeks or months. With a hard money lender, the process can take days.

How is hard money lending so fast?

Hard money lenders can move through the process much faster because they aren’t required to follow the same requirements as banks.

This type of lending was designed for unique scenarios, and for borrowers who need to keep deals moving quickly and efficiently, such as investors or fix-and-flippers.

Real estate investors are always seeking out the next project or deal, and they don’t have time to move through strict requirements they are unable to meet.

Instead of requiring several types of documentation, hard money lenders are more interested in seeing your situation, plan, and exit strategy.

Leveraging their own industry experience and expertise, hard money lenders are then able to make quick decisions on whether you have a deal based on this information.

Which types of borrowers should refinance with a hard money lender?

Real estate investors and those performing fix-and-flip projects are classic examples of the types of borrowers best suited for hard money refinance loans.

However, any borrower who needs a quick refinance solution or who doesn’t qualify for traditional lending is a great candidate for hard money lending.

Borrowers looking to adjust their rate and terms, or those who need more time and funding to complete a project also can benefit from a hard money cash-out refinance.

Where can I find a cash-out refinance hard money loan?

Now that you’re confident a hard money cash-out refinance is a good option for you, how do you find this type of loan?

Not all hard money lenders are the same. 

It’s important to find a reputable lender with experience in cash-out refinancing.

Don’t be afraid to ask a lender for referrals, or to perform your own research on a firm. Ask your lender as many questions as you need to feel comfortable about the process.

Any lender worth your time will be more than willing to answer all your questions, and is interested above all else in building a relationship with their borrowers.

Marquee Funding Group is the ethical standard in hard money lending. We offer a wide range of loan options and products, including:

  • Loan amounts from $50,000 to $20 million
  • Loan-to-value (LTV) up to 70% (deal specific)
  • Purchase money, rate-and-term refinance, and cash-out refinance
  • Single-family, multi-family, commercial, industrial, and land loans
  • Owner-occupied and non-owner-occupied consumer or business purpose
  • Construction, ground up, fix-and-flip, or fix-and-occupy loans

Our team is equipped to structure even the most complicated or unusual lending situations.

If you’d like to learn more about our team, our process, or our loan options, reach out to us today or submit your loan scenario for quick review. We look forward to helping you achieve all your personal and investment goals.

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