Common SenseFinancing.
Straightforward Rates.

With Marquee Funding Group, if your deal makes sense, our qualifications flex to meet your needs and our rates adjust for straightforward financing. Understand rates to decide if a hard money loan is right for you.

Loan options for investors

These common loans can finance projects like buying, rehabilitating, and renting out one or multiple properties of different types.

Institutional loans and hard money loans differ in qualification requirements and timelines. Knowing their differences and choosing the best loan for your scenario will save you time and money.

Hard Money Loans 8.99%-12.99%

Financing is based on the value of the property you want to finance, as funding comes from private investors rather than a government-backed loan program. By focusing on the merit of the deal, rather than your credit score or certain property restrictions, approvals are fast and simple. Although interest rates are higher, term lengths are shorter and you can refinance to another loan type. *see disclosure at the bottom of page

HUD 223 (f)  2.4%-3.8%

HUD 223(f) is part of the US Department of Housing and Urban Development’s Federal Housing Administration Multifamily Housing program. It helps borrowers purchase or refinance existing multifamily rental housing, with limitations for properties that require substantial rehabilitation. It may require certain property conditions and repairs to be met before approving financing and comes with cash-out limitations, insurance premiums, and additional fees.

Freddie Mac Optigo  5.67%-5.97%

Government-sponsored Freddie Mac created Optigo to form a network of lenders who can finance projects beyond what conventional loans cover. This provides more options for specific investment scenarios but also involves extensive qualifications, added fees, and a long approval process. Loans can be used for the acquisition, refinance, or moderate rehabilitation of multifamily properties, including affordable, student, and senior housing.

HUD 221(d)(4)  3.15%-4%

Another of HUD’s FHA Multifamily Housing programs, HUD 221(d)(4) backs lenders in providing borrowers with financing for the new construction or substantial rehabilitation of multifamily rentals for moderate-income families, the elderly, and the handicapped. It has various limits related to rental unit sizes, structure types, and property location and often involves extensive documentation and a long approval process.

How hard money loans are different

With hard money loans, private investors fund deals based on the value of your assets, rather than requirements set by the federal government. So hard money lenders don’t require the same strict qualifications as institutional lenders and can set a more flexible loan agreement.

Asset-based deals mean that the property itself is used as collateral and requirements adjust to match your scenario. This adaptability allows for speed, simplicity, and financing that meets your needs, including receiving funding in as little as seven days.

Flexible requirements do come with higher risks for the lender, so hard money loan rates are often higher than government-backed loans. However, many real estate investors prefer the quick cash flow of a hard money loan over the lengthy approval process for a lower rate.

Hard money loans also can have shorter term lengths so the interest is paid over less time than traditional loans. If you can’t pay off the loan that fast, you can refinance it to another loan type with a lower rate.

What moves hard money loan rates

Interest rates for hard money loans are affected by the
housing market, as well as the amount of risk the lender
takes on by financing your deal. They want the deal to be a
success just like you do. These are the factors that can
affect hard money loan rates.

Details of the loan

  • Term length of the hard money loan
  • Whether the loan is for a purchase, rate and term refinance, or cash-out refinance
  • What the loan amount is (between $50,000-$20 million)

Property and investment considerations

  • Having a clear plan for the property being invested in
  • Property that has value in the current market
  • If the property is owner-occupied, a rental, or both
  • If it’s for land, single-family, multi-family, commercial, or industrial property
  • New construction or rehabilitation costs
  • Potential rental income or profit from selling the property

What you can do to lower your rate

  • Have a higher down payment
  • Show Loan-to-Value of at least 70% or less
  • Prove good financial standing (high credit score, solid cash flow, etc)
  • Show how you’ll pay off or refinance the loan before term length ends
  • Build an ongoing relationship with your hard money lender

Please connect with a hard money lender to discuss the specifics of your scenario to get an accurate rate quote.

Benefits of private money / hard money loans

Knowing the benefits of a hard money loan gives you the confidence to choose the best financing. If you have questions or concerns in any of these areas, discuss them with Marquee Funding Group to learn more.

  • Refinance to another loan type for lower interest rate and longer term length
  • Flexible requirements
  • Funding for unique scenarios
  • Less underwriting and paperwork
  • Faster approvals based on assets
  • Build a partnership with your lender
*These may differ, depending on your investment and finances. Speak with Marquee Funding Group to learn the specific benefits of potential financing for your investment.

Further Reading

This advertisement is from a Real Estate Broker , California Department of Real Estate License #01870113 –
NMLS #267442, and is intended for solicitation purposes; including but not limited to borrowers, investors,
lenders, and/or note purchasers. Rates advertised are subject to change. Marquee Funding Group, Inc.
offers fixed rate loan products with terms from 11 Months to 360 Months at 9%-21% APR including fees.
Marquee Funding Group, Inc. is an Equal Housing Opportunity Lender and accredited by the Better Business
Bureau. All loans subject to CalDRE and NMLS regulations.