Hard money yields 8.5–12.5%

Why it matters

Manuel Angeles, a mortgage and real estate broker, said on May 26 that hard money bridge loans were being offered at rates of 8.5% to 12.5%, with 1 to 3 points, up to 75% loan-to-value and funding in as fast as five days. Angeles made the comments in a post on X that pitched the product as a fast, asset-based option for real estate investors and borrowers who may not fit conventional underwriting. The post framed the loans as a way to close quickly on time-sensitive deals rather than wait through a standard mortgage process. The terms Angeles cited are broadly in line with other bridge-loan and hard-money offers now being marketed online by private lenders and brokers. ### What exactly did Angeles say was on offer? Manuel Angeles wrote that borrowers could get hard money bridge financing at 8.5% to 12.5%, pay 1 to 3 points, borrow up to 75% of value and close in as little as five days. He described the loans as asset-based rather than dependent on W-2 income, placing them in the short-term private-credit segment used for investment properties, bridge transactions and other deals where speed matters. (trentiumcapital.com) The five-day funding claim is a central selling point because private lenders market hard money as a way to move faster than banks. Clear House Lending says hard money loans can close in 3 to 7 days, while Trentium Capital says its bridge loans start at 9.5% with 1.25% origination fees and up to 70% LTV. ### Why are the rates and points higher than a conventional mortgage? Hard money lenders price for speed, collateral risk and short duration. Clear House Lending says commercial hard money loans typically carry 10% to 15% rates with 2 to 5 points, and describes the product as a short-term loan secured by real estate rather than a fully documented bank mortgage. (clearhouselending.com) The underwriting model is also different. Clear House Lending says approval focuses on property value rather than personal credit history, and New Century Lending markets hard money and bridge loans with “No tax returns, no W-2s” and closings in five days. That structure can widen the borrower pool, but it also shifts emphasis to equity, exit strategy and the lender’s view of the asset. (clearhouselending.com) ### Who usually uses this kind of loan? Real estate investors are the core audience for hard money bridge loans. Lenders market them for acquisitions, fix-and-flip projects, bridge periods before a refinance, and deals where a borrower needs to move before permanent financing is in place. Clear House Lending says the loans are suited to short-term scenarios of 12 to 36 months and are often tied to a later sale or refinance. (newcenturymortgages.com) The product is generally not positioned as a low-cost alternative to agency or bank financing. Instead, it is marketed as a speed-and-flexibility tool for borrowers with enough equity, a clear business plan and a defined exit. Trentium Capital lists terms up to 24 months for its bridge program, another sign that these loans are designed to be temporary. (clearhouselending.com) ### How does the 75% loan-to-value figure fit the market? The 75% loan-to-value ceiling Angeles cited sits near the upper end of what many lenders advertise for asset-based bridge products. Clear House Lending says typical LTV runs 60% to 70% based on after-repair value, while Trentium Capital advertises up to 70% LTV and BrightPath Loans markets bridge products with higher leverage on some investor deals. (trentiumcapital.com) That means Angeles’ terms are aggressive but not out of pattern for the current private-lending market. The exact proceeds a borrower gets would still depend on property type, condition, experience, liquidity and the lender’s view of the exit strategy, according to lender descriptions of their programs. ### What should borrowers and brokers watch next? (clearhouselending.com) The next step for any borrower is the term sheet. Lenders typically set the final rate, points, leverage and funding timeline after reviewing the property, title, borrower liquidity and planned exit, according to lender program pages. Angeles’ post remained live on X on May 27. (clearhouselending.com) Borrowers comparing offers can verify whether a lender quotes interest-only payments, prepayment penalties, minimum loan sizes and the exact closing timeline before committing to a bridge or hard money loan. (trentiumcapital.com)

Key numbers

• Manuel Angeles, a mortgage and real estate broker, posted on May 26 that hard money bridge loans were available at 8.5% to 12.5%.
• Angeles said the loans carried 1 to 3 points, went up to 75% loan-to-value, and could fund in as fast as five days.
• Manuel Angeles, a mortgage and real estate broker, said on May 26 that hard money bridge loans were being offered at rates of 8.5% to 12.5%, with 1 to 3 points, up to 75% loan-to-value and funding in as fast as five days.
• Manuel Angeles wrote that borrowers could get hard money bridge financing at 8.5% to 12.5%, pay 1 to 3 points, borrow up to 75% of value and close in as little as five days.

What happens next

• Manuel Angeles, a mortgage and real estate broker, said on May 26 that hard money bridge loans were being offered at rates of 8.5% to 12.5%, with 1 to 3 points, up to 75% loan-to-value and funding in as fast as five days.
• Angeles made the comments in a post on X that pitched the product as a fast, asset-based option for real estate investors and borrowers who may not fit conventional underwriting.
• Manuel Angeles wrote that borrowers could get hard money bridge financing at 8.5% to 12.5%, pay 1 to 3 points, borrow up to 75% of value and close in as little as five days.

Sources

• trentiumcapital.com
• clearhouselending.com
• newcenturymortgages.com

Quick answers