Private Home Equity Loans
Fast, Flexible Financing Options

Private Home Equity Loans (Hard Money Loans)

Looking for fast access to equity when traditional lenders say no? A Private Home Equity Loan—also known as a Hard Money Loan—may be the solution. These short-term real estate loans are backed by the equity in your property, not your credit score or income documentation. Perfect for borrowers with poor credit, inconsistent income, or urgent funding needs, this type of loan provides flexible financing when conventional options fall short.

What Is a Private Home Equity Loan?

Private Home Equity Loans are asset-based mortgages provided by private investors rather than banks. Approval is based on the equity in your real estate—not your FICO score, income history, or recent financial setbacks.

These loans can be used as a first or second mortgage, and they’re especially helpful for:

Borrowers with poor credit
Self-employed individuals without traditional income verification
Those recently out of bankruptcy
Real estate investors needing fast closings

Whether you're looking to access equity from your primary residence or an investment property, a Hard Money Loan offers a streamlined solution outside of conventional lending.

What Interest Rates Should I Expect?

Private money loans come with higher interest rates than traditional financing, due to the increased risk and lack of income or credit verification. Rates and terms are determined on a case-by-case basis, depending on:

Property type and value
Equity position
Loan term
Purpose of funds

How Do These Loans Differ from Conventional, FHA, or VA Loans?

Traditional loans (including FHA and VA) are credit-based and fully amortized over 15 to 40 years. They require full documentation of income, assets, and employment and are typically designed for long-term homeowners.

In contrast, Private Home Equity Loans:

Are interest-only (no principal reduction during the loan term)
Offer shorter loan terms (typically 1 to 5 years)
Require a balloon payment at the end of the term
Are designed for speed, flexibility, and real estate problem-solving

Key Benefits of a Home Equity Loan

Qualification Freedom

We review the most recent 12 months of credit history, making qualification easier for those with past financial issues.

30-Year Fixed Rate Options

Secure your loan with predictable payments and no mortgage insurance requirements.

Flexible Uses

Whether it’s for debt consolidation, home improvements, or new investments, a Home Equity Loan adapts to your goals.

Key Loan Features

Loan Terms: 6 months to 5 years
Repayment: Interest-only payments with a balloon payment at the end
Collateral: Residential, commercial, mixed-use, or multi-unit properties
Loan-to-Value (LTV): Determined by appraisal or Broker Price Opinion (BPO)
Prepayment Options: Some loans allow early payoff without penalty—ask about waiver terms

Are There Any Risks?

Yes—while Private Home Equity Loans are powerful tools, they do come with higher costs and should be considered carefully. Risks include:

Higher interest rates
Shorter repayment terms
Interest-only structure (no equity buildup)
Balloon payment due at term’s end
Prepayment penalties or guaranteed interest clauses

We strongly recommend discussing your exit strategy in detail before proceeding.

Prepayment Penalties: What You Should Know

Most private loans include a 3 to 6 month guaranteed interest period. Penalty structures may include:

Guaranteed Interest: You pay only the remaining months of interest if paid off early
Hard Prepay Penalty: A fixed charge based on the full interest period

Tip: Some investors may waive penalties in exchange for a slightly higher rate. Let’s talk about your needs—we may be able to customize the structure.

Required Documentation to Begin

To get started, we’ll need:

Loan application
Mortgage statement
Promissory note (for second liens)
Lease agreements (if rental income is involved)
Insurance declarations page
Letters of explanation (use of funds and exit strategy)
Valid ID and Social Security card (front and back)

Work with Experts Who Understand Flexibility

At Independent Home Finance Inc., we’ve helped hundreds of borrowers access the equity in their homes—even after being turned away elsewhere. We specialize in creative lending solutions, fast closings, and no-nonsense answers.

Let’s find the best path forward for you. Contact us today to learn more or start your application.

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What our clients are saying

Mr. Kyle was responsive to my requirements and concerns with cooperation and friendliness that I appreciated. It was a pleasure doing business with him and his organization.

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Tim is an excellent resource on all things home finance and extremely gracious with his time and assistance with advice on how to improve one's credit profle and scores.

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