Hard Money # What Is Hard Money Lending in Texas? What a hard money lender is, how hard money loans work, what they cost, and when Texas investors use them, from a Fort Worth lender that underwrites your loan in house. [Apply Now](https://cedartoplending.com/apply/) [Get a Quote](https://cedartoplending.com/contact/) By Cedar Top Lending · Published June 22, 2026 · Last updated July 23, 2026 Hard money lending is short-term, asset-focused financing secured by real estate, usually used by investors for business-purpose, non-owner-occupied investment property. Texas investors use hard money when speed, collateral value, renovation plans, or a clear exit strategy matter more than fitting a traditional bank loan box. Cedar Top is a Texas private money lender. This guide explains how hard money works, when investors use it, what we review, and when it is not the right tool. For the programs and current terms, see our [hard money loan programs](https://cedartoplending.com/hard-money-loans/). ## What Is a Hard Money Lender? A hard money lender is a private company or individual that makes short-term loans secured by real estate, funded with private capital rather than bank deposits. The "hard" refers to the hard asset securing the loan. A bank lends depositors' money, so it underwrites the borrower first. A hard money lender lends private capital, so it underwrites the property first. Cedar Top is an example. We are a direct private lender in Fort Worth. Our team has worked Texas real estate since 1998, we are real estate investors ourselves, and we underwrite your loan in house with no outside underwriter and no third-party appraisal to wait on. That is how we can close in days, in some cases in as little as 24 hours once title work is complete. ## Asset-Focused, Not Credit-Score-Only Hard money is driven primarily by the property: its collateral value, your equity in the transaction, your project plan, and your exit strategy. That is the core difference from a bank loan, which leans heavily on your income, credit score, and debt-to-income ratio. That does not mean credit is ignored. Depending on your deal, we review your borrower and entity information, experience, liquidity, credit, title, insurance, scope of work, and exit strategy. The property leads, but your borrower profile still matters. We review the property, your project plan, your borrower profile, and your exit strategy before determining whether your deal fits. Because hard money is asset-focused and business-purpose, it is for non-owner-occupied investment property, not a home you intend to live in. ## How Hard Money Compares to Other Financing Hard money trades cost for speed and flexibility. It closes faster and fits more property types than a bank loan, and it costs more while you hold it. The table below compares the main routes investors use to finance property. These are general industry descriptions, not Cedar Top terms. For a line-by-line comparison of our terms against a typical bank's, see [hard money vs. a bank loan](https://cedartoplending.com/hard-money-loans/vs-bank-loan/). Financing type Best for What the lender focuses on Speed / documentation When it may not fit Hard money loan Short-term, business-purpose investment property and renovation or construction projects The property, collateral value, project plan, and exit strategy, plus a borrower review Typically faster with lighter documentation than a bank, still subject to title and underwriting Long-term holds at the lowest rate, or owner-occupied property Traditional bank loan Long-term holds and owner-occupied or conforming purchases Borrower income, credit, debt-to-income, and full documentation Slower, with heavier documentation and outside underwriting Time-sensitive purchases, heavy renovation, or unconventional property Seller finance / private note Situations where the seller or a private party carries financing Terms negotiated between the parties and the property Varies widely by the parties and the agreement When no seller or private party is willing to carry the note Cash purchase Speed and the strongest negotiating position The buyer's available capital Fastest, with the least third-party process When the investor wants to preserve capital or use leverage ## What a Hard Money Loan Costs Our Texas hard money loans start at 12% interest, with an origination fee of 2% to 4%, a $995 document fee, interest-only monthly payments, and no prepayment penalty. Terms run from a 6 month initial term on a fix and flip to 6 to 24 months on raw land, many with extension provisions. Loan amounts run $50,000 to $1,000,000, and up to $10,000,000 on raw land. Program Pricing Term Max leverage [Fix and flip](https://cedartoplending.com/hard-money-loans/fix-and-flip/) Starting at 12% 6 month initial term, extension provision Up to 75% of ARV [New construction](https://cedartoplending.com/hard-money-loans/new-construction/) Starting at 12% Set by the length of the project Up to 90% loan to cost, within 70% LTV [Bridge](https://cedartoplending.com/hard-money-loans/bridge-loans/) Starting at 12% 6 to 12 months, extension provisions Up to 75% LTV [Land and Ranch](https://cedartoplending.com/hard-money-loans/land-and-ranch/) Starting at 12% 6 to 24 months Up to 65% of market value [Commercial](https://cedartoplending.com/hard-money-loans/commercial/) Starting at 12% 6 to 12 months, extension provisions Up to 75% LTV [Transactional funding](https://cedartoplending.com/hard-money-loans/transactional-funding/) 1.5% fee or $1,500 minimum, no upfront fees Same-day funding may be available, subject to a confirmed end buyer at title 100% of the purchase price and closing costs These are our published terms, not a national survey. National guides quote wide industry ranges; we would rather show you our numbers. The [rates and terms](https://cedartoplending.com/hard-money-loans/rates-and-terms/) page is the full table, and the [hard money loan calculator](https://cedartoplending.com/resources/hard-money-loan-calculator/) will put a monthly payment on your specific deal. ## When Texas Investors Use Hard Money Investors typically reach for hard money when an acquisition or project is time-sensitive and driven by the property and its economics. Common scenarios include: ### Fix-and-Flip Projects For a [fix-and-flip project](https://cedartoplending.com/hard-money-loans/fix-and-flip/), you buy, renovate, and resell, and we fund the renovation portion in draws as work is completed. ### New Construction or Spec Builds For [new construction](https://cedartoplending.com/hard-money-loans/new-construction/) and spec builds, ground-up financing can move faster than a conventional construction loan. ### Bridge Scenarios A [bridge loan](https://cedartoplending.com/hard-money-loans/bridge-loans/) is short-term financing used to acquire or hold a property now and refinance or sell later. ### Raw Land or Rural Property Acquisitions A [raw land acquisition](https://cedartoplending.com/hard-money-loans/land-and-ranch/) covers lots and acreage that many traditional lenders avoid, where collateral value and your plan for the property drive the review. ### Commercial and Value-Add Investment Property For [commercial investment property](https://cedartoplending.com/hard-money-loans/commercial/), investors use hard money on retail, office, and value-add transactions where speed and the property economics matter. ### Transactional Funding and Double-Close Transactions A [transactional funding request](https://cedartoplending.com/hard-money-loans/transactional-funding/) supports a same-day double close, where short-term funds bridge an A-to-B and B-to-C transaction. Apply for a Texas hard money loan. [Apply](https://cedartoplending.com/apply/)[Contact](https://cedartoplending.com/contact/) ## What Hard Money Lenders Usually Review When we evaluate your deal, the review centers on the property and the project, then you. Items reviewed can include: - Property value and condition - Purchase price - ARV or projected value, when relevant - Scope of work and budget - Borrower experience - Liquidity or capital position - Entity documents - Title status - Insurance - Exit strategy - Texas market fit - Loan-to-value, loan-to-cost, or loan-to-ARV, where relevant Terms like ARV and LTV are defined in the [private money loan glossary](https://cedartoplending.com/resources/private-money-loan-glossary/), and you can estimate figures with the [hard money loan calculator](https://cedartoplending.com/resources/hard-money-loan-calculator/) or the [fix and flip profit calculator](https://cedartoplending.com/resources/fix-and-flip-profit-calculator/). For current program terms, see [rates and terms](https://cedartoplending.com/hard-money-loans/rates-and-terms/), and for a fuller checklist of what to expect, see [hard money loan requirements in Texas](https://cedartoplending.com/blog/hard-money-loan-requirements-texas/). ## The Hard Money Loan Process Every lender runs its own process, but your deal generally moves through these steps: 1. Submit the property for review. 2. We review the collateral and how the project fits. 3. We review your borrower and entity information and documentation. 4. We discuss terms. 5. Title and collateral review. 6. Closing. 7. If your loan includes rehab or construction funds, we release money through a [draw process](https://cedartoplending.com/resources/draw-process/) as work is completed and inspected. ## When Hard Money Is Not the Right Tool Hard money is a specific tool, and it is not the right fit for every situation. It is generally not suited to: - Owner-occupied homes - Homestead purchases - Long-term, low-rate financing needs - Deals with an unclear exit strategy - Transactions with serious or unresolved title issues - Properties outside Texas - Projects where the borrower cannot support the project plan - Deals where the economics do not support private lending Hard money costs more than a bank loan. If your timeline is long and a bank will do your deal, the bank is the cheaper answer. ## Documents to Prepare Before Contacting a Hard Money Lender Depending on your property and project, we may ask for items such as: - The purchase contract - The property address - Photos - A scope of work - A rehab or construction budget - Entity documents - Borrower identification - Insurance information - A title company contact - The exit strategy - Comparable sales or ARV support, if available Not every deal requires every item, and we may ask for more once we review the property. For a fuller checklist, see the [documents for a Texas investment property loan](https://cedartoplending.com/blog/hard-money-loan-documents-checklist-texas/). ## Texas-Specific Considerations - We lend on Texas investment real estate. - Non-owner-occupied investment property only. - Title review matters on every Texas real estate transaction. - Rural property, raw land, and smaller-market properties may require extra documentation. - Confirm local, legal, title, tax, and project-specific questions with the appropriate professional. See where we lend across the state on the [service areas](https://cedartoplending.com/service-areas/) page. ## Example Hard Money Financing Scenarios Here is a hard money loan with real numbers on it, using our fix and flip terms. These are illustrative scenarios, not real customers, quotes, or commitments to lend. We review every deal on its own. - **Purchase price:** $180,000 - **Rehab budget:** $60,000 - **ARV (after-repair value):** $320,000 - **Estimated loan amount:** up to ~$240,000, which is our 75% of ARV cap - **Payments:** interest-only on the outstanding balance - **Rehab funds:** placed in escrow at funding and released in draws as work passes inspection You bring the down payment, points, fees, and reserves to close, then repay the loan by reselling the renovated property or refinancing into a longer-term rental loan. Run your own numbers in the [fix and flip profit calculator](https://cedartoplending.com/resources/fix-and-flip-profit-calculator/). The same structure carries across project types: - **A new construction investment property.** You finance a ground-up, non-owner-occupied build, where your project plan and budget drive the review. - **A raw land or rural property acquisition.** You acquire raw land or rural property where bank financing does not fit, and collateral value and your plan for the property matter most. ## Related Resources Talk to a Texas hard money lender. [Apply](https://cedartoplending.com/apply/)[Contact](https://cedartoplending.com/contact/) ## Frequently Asked Questions ### What is hard money lending? Hard money lending is short-term, asset-focused financing secured by real estate. Investors typically use it for business-purpose, non-owner-occupied investment property, where the value of the collateral and your project plan carry significant weight. It is not a consumer mortgage. ### Is hard money the same as private money? The terms are often used interchangeably. Both describe asset-focused real estate financing provided by a private lender rather than a bank, secured by investment property. Specific structures can vary by lender and by transaction. ### Is hard money only for house flippers? No. Investors use it for fix-and-flip projects, new construction, bridge scenarios, raw land acquisitions, commercial value-add property, and transactional funding. The common thread is a business-purpose, non-owner-occupied investment property. ### Do hard money lenders check credit? It depends on the lender. Hard money is asset-focused, so the property and the project economics carry more weight than a credit score. We have no minimum credit score, but we do look at your credit, experience, and liquidity. ### What documents should I prepare? Depending on your property and project, we may ask for the purchase contract, property photos, a scope of work and budget, entity documents, identification, insurance information, a title company contact, and exit strategy support. Not every deal requires every document. ### How does a rehab draw work? On renovation and construction loans, the rehab portion is held and released in draws as work is completed and inspected. See the draw process page for how it works. ### What makes a property a poor fit for hard money? Deals with an unclear exit strategy, unresolved title issues, or economics that do not support the loan are not a good fit. Properties outside Texas, owner-occupied homes, and homesteads are not eligible. ### How do I compare Cedar Top loan programs? Review the individual program pages and the Compare Loan Programs page to see how fix-and-flip, new construction, bridge, raw land, commercial, and transactional funding differ, then apply online. ### Where does Cedar Top lend in Texas? Cedar Top focuses on Texas investment real estate, including the Metroplex and many smaller markets, rural areas, and raw land that some lenders avoid. See the service areas page for where we lend. ### What are the risks of a hard money loan? The main risks are cost and the clock. Hard money costs more than a bank loan, the term is short, and the loan is secured by your property, so a stalled project or a missed exit puts your equity at risk. Manage it with a realistic budget, an ARV your comps support, and an exit you would bet on. ### How long do you have to pay off a hard money loan? Our terms are short by design, from a 6 month initial term on a fix and flip to 6 to 24 months on raw land, and many programs carry extension provisions. Your loan is built to be repaid by a sale or a refinance, not held for years. ### Why would an investor use a hard money lender instead of a bank? Speed and fit. A hard money lender underwrites the property and the plan, so it can fund deals banks decline, such as heavy rehabs, raw land, and time-sensitive purchases. We underwrite your loan in house with no outside underwriter or third-party appraisal, and in some cases we can close in as little as 24 hours once title work is complete. ### What is an example of a hard money lender? Cedar Top Lending is one example, a direct private lender in Fort Worth funding non-owner-occupied Texas investment property with in-house underwriting. Hard money lenders range from local direct lenders like us to national firms. Banks and credit unions are not hard money lenders. ## Related Reading - [How to Buy Land in Texas: An Investor's Acquisition Guide](https://cedartoplending.com/blog/how-to-buy-land-in-texas/) Land & Ranch How to vet, finance, and close a Texas land deal. Access, surveys, mineral rights, ag rollback taxes, the closing process, and financing options compared. - [Owner Financed Land in Texas: How Sellers Structure the Note](https://cedartoplending.com/blog/owner-financed-land-texas/) Land & Ranch How a Texas owner-financed land sale is papered (deed, note, deed of trust), what the note must spell out, seller diligence, and when to use a servicer. - [Texas Land Loan Rates: What a Private Land Loan Costs](https://cedartoplending.com/blog/texas-land-loan-rates/) Land & Ranch What a Cedar Top Texas land loan costs: rates from 12%, 2% to 4% origination, a $995 doc fee, a worked carry example, and how bank and Farm Credit loans differ. This article is general education for real estate investors, not financial, legal, or tax advice. Non-owner-occupied investment property only. Terms, rates, and availability are subject to underwriting, collateral review, title review, documentation, and approval. This is not a commitment to lend. See our [disclosures](https://cedartoplending.com/licensing-disclosures/). --- Canonical URL: https://cedartoplending.com/blog/what-is-hard-money-lending-texas/