Typical terms from hard money lenders in Maryland may differ, but expect to see:

  • Loan Term: 6 months to 3 years (usually short-term)
  • Interest Rates: 12% to 15% (higher than traditional loans)
  • Loan-to-Value (LTV) Ratio:55% to 65% of the property’s value
  • Down Payment: 10% to 40% (varies by lender and risk)
  • Origination Fees: 2% to 5% of the loan amount
  • Repayment: Interest-only payments with a balloon payment at the end

Hard money loans are primarily used for fix-and-flip projects, real estate investments, bridge loans, or situations where fast funding is needed. Hard Money Lenders fund investment residential and commercial loans.