How fast can a hard money loan close?
A hard money loan typically closes in 5 to 10 business days, and some lenders can fund in 3 to 5 days when title is clear, the valuation is a desktop or drive-by, and the borrower's documents are ready. Title work and the valuation are the two items that set the pace.
A typical timeline
| Day | Milestone |
|---|---|
| 1 | Application, term sheet, deposit for valuation |
| 1 to 2 | Title ordered, entity documents and insurance requested |
| 2 to 5 | Valuation completed (desktop, broker opinion, or inspection) |
| 3 to 6 | Title report reviewed, any liens or issues cleared |
| 5 to 8 | Loan documents drafted and signed |
| 5 to 10 | Funding |
Ranges vary by lender and state. Attorney-closing states run a few days longer than escrow states.
What lets a lender close in three to five days
- A title company that already has a current report on the property, common with recently listed or recently sold properties.
- A desktop valuation instead of a full appraisal.
- An LLC that already exists with a bank account and an operating agreement.
- Insurance quoted before the term sheet.
- A borrower who signs the day documents arrive and wires the down payment early.
What slows it down
- Title problems: unreleased old mortgages, liens, probate, or a seller who cannot sign.
- A property that needs a full interior appraisal in a backlogged market.
- A new LLC whose formation documents have not been returned by the state.
- A rehab scope that changes after the budget review.
- Wire cutoffs and weekends.
Speed has a price
Most lenders charge a half point or more for a rush close, and desktop valuations usually come with slightly lower leverage because the lender has less information. If the contract gives you 14 days, the standard timeline works. If it gives you 5, plan for the premium.
Compared with other loans
Hard money: 5 to 10 days. Bridge: 2 to 4 weeks. DSCR: 3 to 4 weeks. Bank and SBA: 45 to 90 days. Hard money is the fastest financing available for real estate, which is often the only reason to pay for it.
How CommFi handles it
Our lending desk tells you on day one which closing date is realistic. It funds direct when it fits, and when the contract needs a lender that closes in five days, the desk searches a database of 7,000+ lenders and the ones that can hit the date compete for the file. Zero upfront fees.
Related reading
Related questions
- Can a hard money loan close in 3 days?
- Sometimes, with clean title, a desktop valuation, a formed LLC, and a borrower who signs immediately. Expect a rush fee.
- What is the slowest part of a hard money closing?
- Title, when there are liens or ownership issues, followed by the valuation.
- Do I need an appraisal for hard money?
- Not always. Many lenders use a desktop valuation or a broker opinion, which is faster.
- Does a faster close cost more?
- Usually a half point or more, and slightly lower leverage if the valuation is a desktop.
- How can I make my hard money loan close faster?
- Have the LLC, insurance, bank statements, and rehab scope ready on day one, and pick a title company that can move.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.