Hard Money Fix and Flip Loans

Hard money is short-term, asset-based financing where the lender's primary focus is the property value and deal economics, not the borrower's credit score or income. LYNK Mortgage's fix & flip product functions like hard money: we approve or decline based on ARV, budget, and LTC—not your W2 income or 10-year credit history. Hard money is ideal for: borrowers with lower credit who have strong deals, fast acquisitions where time-is-money, fix & flip projects with proven exits. Traditional lenders (banks, Fannie Mae) focus on credit, income, and long-term stability. Hard money lenders focus on collateral value (the property) and exit plan. The trade-off: higher rates (8-10%) but faster closes (10 days vs 30-45) and more flexible underwriting.

Hard money/private lending: 8-12% rates, 80-95% LTC, 10-14 day close, deal-based underwriting, flexible credit. Bank/conventional: 6-7% rates, 65-75% LTC, 30-45 day close, credit and income-based underwriting, stricter requirements. LYNK Mortgage is a direct private lender offering the best of hard money: 8.50% starting rates, up to 95% LTC, 10-day closings, deal-based underwriting—but with disciplined processes (we verify ARV, budget, contractor credentials) and dedicated personal service. Choose private lending if: speed matters, credit is imperfect but the deal is strong, you're an experienced flipper. Choose bank financing if: lowest rate is the priority, you have pristine credit and proven income, and a 30-45 day timeline is acceptable.

LYNK Mortgage funds fix & flips with these mechanics: 1) You apply with deal details (contract, ARV estimate, contractor proposals). 2) We evaluate: is ARV realistic? Is budget conservative? Is LTV appropriate for deal type? 3) If approved, we order appraisal (5-7 days). 4) After appraisal, you close (10 days total from appraisal). 5) Purchase funds go to title company; rehab funds go into escrow. 6) As work completes, you request draws; our inspector verifies work, we release funds. 7) After 6-12 months, you sell and pay off loan. Interest accrues on full loan amount during holding; no prepayment penalties. This process protects both us and you: your contractor doesn't get paid until work is done, we don't fund poor-quality work, and you have clear milestones.

Hard money (fix & flip): best for short-term projects with clear exits (property sells within 12 months). DSCR: best for long-term rentals where property stabilizes and generates NOI. Bridge loans: best for transitional financing (need 6-month bridge while waiting for permanent financing). Example: fix & flip at $200k—LYNK Mortgage hard money at 8.50% for 12 months. Example: buy rental at $400k, hold 5+ years—LYNK Mortgage DSCR loan at 6.5% for 30 years. Don't force a DSCR loan on a flip project (DSCR is amortized over 30 years, high monthly payment doesn't fit flip timeline). Don't use hard money for long-term holds (interest-only on 12-month loan is fine; repeating hard money every 12 months gets expensive).