Hard Money & Debt Consolidation Loans

Posted on November 10, 2020 in Debt

What is “Hard Money”? A hard money loan is a viable alternative financing strategy that involves a specific type of asset-based loan that is secured by a real estate property. The name itself can be misleading, as hard money debt consolidation loans do not not require much difficulty to obtain.

Instead, the truth is that this financing option can allow a borrower to receive funds secured by way of real property in a relatively easy manor. This common misconception may deter some people from pursuing this worthwhile financing option for debt consolidation, and while it may be defined as unconventional by some institutional lenders, hard money loans have helped many.

How do Hard Money Debt Consolidation Loans Work?

Generally, the way hard money loans work is that a borrower will back a short-term loan with a tangible asset, most typically a piece of real estate. This unique type of loan allows for a viable alternative to a traditional lender such as a bank, as a hard money loan comes from a private group or individual lender. While the requirement, terms, and loan offers can vary between lenders, they can fulfil the need to get money quickly for a hard money debt consolidation loan that an institutional lender (i.e. bank, credit union, etc.) can’t offer.

Hard Money Debt Consolidations Loan Expectations

There are several key expectations to consider when working with a hard money lender for debt consolidation or otherwise. Firstly, you should expect a hard money loan to be paid back in the short-term, usually within 6 months, although some loan terms can range up to two or three years.

Next, it’s important to understand that because hard money debt consolidation loans are funded by private investors, the potential lender is going to be primarily concerned with property value instead of a borrower having good credit. This means that when a larger bank denies a loan, a hard money lender will usually still be able to make something work for you.

Lastly, when seeking out a hard money lender, keep in mind that some may only specialize in a single type of property. Thus, when considering a lender to take care of debt consolidation for past due credit cards, late mortgage payments, or other unpaid collections, be sure to understand the specific kind of areas they focus in, such as residential, land loans, etc.

Benefits of Debt Consolidation Loans with Hard Money

At this point you may still be wondering, “why is hard money a good financing option?” The answer is that hard money loans for debt consolidation can be the best source of financing after you have already explored other conventional options, and you need a loan in a short period of time. Furthermore, if you’re still on the fence about applying for a hard money loan for debt consolidation, here are the top six reasons to consider:

1. Hard Money Loan Speed

Unlike big banks who can move very slowly and require a lengthy process for obtaining a loan, most hard money lenders will be able to fund you in as little as two weeks to a month. This allows you to get the cash you need quickly.

2. Low Documentation Requirement

Institutional lenders will often require a lot of paperwork and documentation, not only further extending the time it takes to acquire the money you need, but also making the process more difficult. Even the best hard money lenders will still require documentation, but considering the main requirements in focus pertain to the property or asset and not the borrower, there is generally much less paperwork to be done.

3. No Credit Issue

Like we mentioned earlier, above all else a hard money lender will be most concerned with the property of a borrower for determining a loan amount. If you already pursued a different debt elimination strategy that has caused harm to your credit score in the past, don’t worry. Instead, a lender will focus on aspects such as real estate property value, as well as the total amount of equity that a borrower has invested into said piece of land or property.

4. Ease and Flexibility

A hard money lender will offer superior flexibility compared to an institutional lender, as there is much more room to accommodate for aspects such as specific term rates, interest revenue, origination fees, maturity dates, etc. This makes it easier to get a hard money debt consolidation loan from a lender, eve if you have bad credit.

5. Gap/Bridge Financing

If there happens to be a gap in funding that exists when working with a hard money lender, it can usually be easily worked out. With a typical institutional lender, the guidelines you may have to follow are not very flexible, and they will be much more likely to turn down any gap requests, especially if a borrower does not adhere to the agreed upon schedule.

6. Higher Risk Profile

Above all else, a hard money lender will offer debt consolidation loans when others cannot. Due to their knowledge of the loan process and understanding of the true value of the collateral, they will be able to fund someone with a much higher risk profile compared to a bank or other large institution.

The best Hard Money Lenders for Debt Consolidation

The following top hard money lenders stand out compared to others in the industry for various reasons, read on below to learn how they have proven themselves to have some of the best reputations.


We consider LendingHome the best overall hard money lender on our list for several reasons, offering reliable and simplified loans to investors off all experience levels.

Key benefits:

  • America’s largest hard money lender
  • Provides the necessary capital and support to both first time borrowers and more experienced investors
  • Extremely fast and simple process
  • Low interest rates, and some of the most competitive costs
  • Flexible terms and tailed approach

RCN Capital

RCN Capital is another leading nationwide hard money lender that can provide both short and long-term options for potential borrowers.

Key benefits:

  • Quick closings in as few as 10 business days
  • Excellent customer service, committed to remarkably high standards
  • In-house approvals for common sense underwriting
  • Offers both long-term financing for renal loans, and short-term bridge loans
  • Competitive rates starting at 4.95%


Boasting over $8 billion in loans funded, CoreVest has the funds to deliver when you need it most.

Key Benefits:

  • Large portfolio, with uncapped access to capital
  • Tailored approach, with loan products customized to unique needs
  • Wide range of loan products, making them a one-stop shop for investment loans
  • Can provide a short-term credit line
  • True nationwide lending

Lima One Capital

As a single source partner for financing, Lima One Capital can meet your investment needs through some of the most efficient and effortless exchanges.

Key Benefits:

  • Custom client portal and online application process for an easy and clear approach
  • Will fund first-time investor with lower credit scores
  • Straightforward and competitively priced rates, terms, and fees
  • Will work out financing no matter the investment amount
  • Excellent customer reviews, with more options than just hard money loans

Patch of Land

An excellent peer-to-peer hard money loan provider, Patch of Land offers a unique online marketplace to connect borrowers with financing lenders.

Key Benefits:

  • Interest rates starting at 5.99%
  • Funding in as little as 7 days
  • Transparent platform, with large access to lenders
  • Low origination fees, with flexible loan durations
  • Offers both residential and commercial options

Bottom Line: Should You Use a Hard Money Loan for Debt Consolidation?

Pursuing a hard money debt consolidation loan can be a smart way to achieve debt relief and begin a path towards building financial freedom. These unique type of loan options can provide low interest rates and terms, fair origination fees, and a monthly payment that makes sense for those who may be struggling to stay afloat. Hard money loans also provide those with bad credit a way out of debt, as credit history is not as important as the property or asset up for consideration. Let a hard money loan quickly help you find the relief you need, and consolidate your debt today.

Still have questions? Wondering what the smartest way to consolidate debt? Is debt settlement worth it instead?

Get in touch with our financial experts today and determine if hard money debt consolidation loans are right for you!

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