Can You Refinance a Hard Money Loan?
5 minute read
January 12, 2022


Hard money loans are fast, simple funding options for consumers and investors alike. 

Experienced hard money lenders typically offer a wide range of loan options. They can work with even the most unique and complicated scenarios.

But what happens if the loan is due and you’re not ready to sell your property yet? Or if you need more funding to complete a fix-and-flip project? 

Fortunately, even hard money loans have refinance options.

Learn what your refinance options are with a hard money loan, why it might be beneficial in your scenario, and how to qualify for a hard money refinance.

What’s your loan scenario?

Can you refinance a hard money loan?

In short, yes, you can refinance a hard money loan either using a traditional lender or hard money lender. 

With the right lender, you will have multiple refinance options, including rate-and-term refinance and cash-out refinance.

Many borrowers choose to refinance their hard money loan using traditional lenders to secure long-term financing. 

This is ideal for those who have fulfilled their need for the hard money loan, plan to live at the property or rent it out, and have the time to refinance with a bank or other traditional lender.

However, for many others, this still isn’t a realistic option.

Who should refinance with a hard money lender?

Most real estate projects require quick financing with flexible terms, and this isn’t something banks are able to do. 

Refinancing can be a long process that requires strict documentation and several steps to work through. Traditional lenders often won’t want to take a risk on investment properties, either.

Refinancing your current hard money loan with another hard money loan has its benefits if you are in any of the following situations:

  • Can’t qualify for traditional financing
  • You don’t have the time to wait to refinance to a conventional mortgage, which can take several weeks or even months
  • You want to adjust your interest rate or term length
  • Your current hard money loan is almost due but you want to keep the property or aren’t ready to sell it yet
  • You’re a real estate investor and you have another investment opportunity you need to jump on quickly
  • You need more funding for your fix-and-flip project
  • You need to avoid foreclosure
  • You’re building a home and need more time to complete the project before selling 

Discuss your scenario with a hard money lender. These types of lenders, including the experts at Marquee Funding Group, operate based on common sense and the overall merits of the deal. If your deal makes sense, they will fund it. 

Just reach out to ask questions about your situation.

Benefits of refinancing a hard money loan

The greatest benefits of refinancing a hard money loan are similar to the reasons many choose this loan type in the first place: It’s quick, flexible, and simple.

While traditional lenders require several weeks or months to move through the refinance process, hard money lenders only need about a week. 

Marquee Funding Group offers same-day approvals and in-house underwriting.

Above all, refinancing your hard money loan provides you with the additional time and money to complete your projects and fulfill your goals in a way that is fast and hassle-free. 

You have the freedom to move at your pace to accomplish all your most ambitious real estate dreams.

What are the qualifications for refinancing a hard money loan?

If you choose to refinance your hard money loan with a bank or other traditional lender, you will need to provide documentation of your current income, job history, credit score and history, and more.

You may be denied approval if you don’t meet the new loan’s requirements. While this option can be perfect for those in search of long-term financing who meet the requirements, hard money lenders strive to meet those who don’t fit into this box.

Rather than scrutinizing your credit history and debt-to-income (DTI) ratio, a hard money lender just needs to know your updated plan, progress, and exit strategy.

These types of lenders are interested in building a relationship with borrowers and investors for many deals to come. Deals are built on trust, respect, and transparency between the lender and borrower.

How to refinance with Marquee Funding Group

Marquee Funding Group moves fast. We are able to do this because we are made up of a tight-knit team of experienced hard money lending experts. 

Each of our loan officers is trained to structure mortgages for even the most unique scenarios.

Our team offers:

  • 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

If you have a current hard money loan and would like to refinance, submit your loan scenario to Marquee today so we can help you meet your real estate goals.

Let us take a look at your scenario, regardless of its complexity. We think you will love our common-sense approach to lending.

Photo by RODNAE Productions from Pexels

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