5 Best Hard Money Lenders in Delaware

Hard money lenders in Delaware are ready to provide financing solutions to many investments.

Key Terms

  • Hard money loans are private loans that provide funds for investment in real estate that may be considered high risk, like fix and flip properties, new construction or rental investments.
  • Most hard money lenders in Delaware charge a higher interest rate on their loans than traditional mortgages and commercial loans because of this higher risk, but with short term loans, they are typically still competitive.
  • Most Delaware hard money loans can be based on after repair value, helping borrowers cover the costs associated with repairs.

Delaware may be the smallest state, but it has a lot to offer. The state, located on the Atlantic Ocean, borders the Delaware River and Delaware Bay, creating a beautiful view from just about any area. The state itself is known for its beaches and history, but it is also a vibrant place to call home. About 960,000 people call it home, making it much smaller than other states in population. Delaware has long been an agricultural area, but over the years, it has become an ideal place to call home for those looking for a higher quality of life. It is noted for its high value and more affluent neighborhoods, many of which are second homes or large, sprawling estates. When it comes to the economy, agriculture is still very important here, but it is also an industrial state and a service-based state.

Delaware offers a wide range of homes and neighborhoods. Its largest city Wilmington, and Dover, the state’s capital, are by far the most common places for people to live. Many stately homes and larger properties exist, though there are various areas of smaller homes and starter communities. The median price for a home in Delaware in August of 2022 was $320,000. That is significantly higher than many other areas of the country, but this is certainly not the most expensive real estate market.

One key fact to consider is rental demand. In Delaware, the U.S. Census Bureau states that about 72.6% of people own their homes, and about 27.4% state they rent their homes. More specifically, there is demand for rentals here, especially since 2.6% of all rental homes are vacant, a very low number overall. This could indicate that, for some borrowers, there is room for investment in real estate in Delaware, especially for those who want to buy and rent a home as a long-term rental income.

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How hard money loans work

A hard money loan is a type of real estate loan in which the value of the asset backs up the loan. That means that the lender will require the home to be used as collateral when obtaining the loan. There are numerous benefits to this for the lender, but the primary reason for it is that it lowers risk. Many of these homes are high risk, which means the borrower is at a higher risk for defaulting. To minimize some of that risk, hard money lenders in Delaware will have the ability to foreclose on the home if the borrower defaults. This adds a bit more security to the loan.

Most hard money loans in Delaware are short-term loans, which means they are typically repaired within 1 to 5 years. They are meant to be a loan that helps to provide financial help fast when the borrower is hoping to purchase the home. For example, these loans can help investors purchase a home they need to repair and then sell quickly. Other times, they can work well for real estate investments or as bridge loans. They are not meant to be carried long term.

Interest rates on most hard money loans tend to be higher than on a conventional loan, such as one from a traditional bank. These loans carry more risk, increasing the cost borrowers charge. However, this, along with the fact that the loans are short term, makes these loans still an attractive offer. Hard money loan lenders in Delaware are sometimes individuals or small financial firms. They set the terms they are willing to accept for borrowers pursuing these loans.

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5 Top Delaware hard money lenders

If you’re ready to learn more about the best hard money lenders lenders in Delaware, here are the top options we’ve found through our research.

1. HouseMax Funding

HouseMax Funding is based out of Austin, Texas but has a national footprint when it comes to real estate industry lending. Started by Jeff Fetcher and Alex Morris, HouseMax provides asset-based loan financing to investors for real estate transactions.

We reached out to HouseMax to learn more about their hard money lending program and here is what we found:

  • Minimum loan amount is $75,000
  • Lends up to 75% of the after-repair value (APV)
  • 1-3 points origination fee
  • 3 months reserves required
  • Direct lender that approves loans internally and funds using their own private capital.
  • Lends in urban and suburban communities in all 50 states.
  • Goal is to close loans in 10 days or less.
  • Specializes in fix & flip loans, construction and rental loans
  • Multi-family and commercial properties are ok

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. Stratton Equities

Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.

We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:

  • Loan amounts from $100,000 up to $5 million
  • Investment properties only
  • Property types include: Single-Family residential properties, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse
  • Up to a 75% LTV (loan to value)
  • Rates start at 7.25%
  • Interest only payments
  • Loan terms are 9-24 months
  • Foreign nationals are eligible
  • No prepayment penalty option is available

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. Easy Street Capital

East Street Capital is based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.

We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:

  • Interest rates range from 6.9% – 10.9%
  • Points range from 2-3
  • There is a $1495 document fee
  • No minimum credit score required
  • Down payments of at least 10% required
  • Renovation financing ok
  • Fix and Flip loans do not typically have prepayment penalties

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. EquityMax

EquityMax is based out of Florida and most of its business in the state but is able to lend throughout the United States. Founded by Brad Emmer in 1990, EquityMax has decades of experience as a hard money lender.

We reached out to EquityMax to learn more about their hard money loans and these are the key highlights that you need to know:

  • Single Family Homes
  • 1-4 Multi-Unit rental Properties
  • Condos and Townhomes ok
  • Commercial property and Industrial Warehouses OK
  • Direct lender that has decision making over financing deals.
  • Can originate loans to individuals, LLCs, corporations, land trusts and self-directed IRAs.
  • No prepayment penalties
  • No minimum credit score required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. LendSimpli

LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investing market.

We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:

  • Loan amounts up to $5 million for 1-4 unit properties
  • Loan amounts up to $20 million for 5+ unit properties
  • Single family (1-4 units)
  • Multifamily (5-20 units)
  • No owner-occupied properties
  • Loan terms 12-24 months
  • Interest-only payments with rates starting at 8.50%
  • Max LTC is 90% of project costs
  • Minimum credit score is 660
  • Prefer that you have at least two transactions in the past three years

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

What are the main advantages of a Delaware hard money loan? 

Hard money loans in Delaware are often beneficial because they allow investors to purchase homes quickly and affordably, even when a traditional mortgage loan may be available. There are a few things that help these loans stand out. One of those differences is that these loans can be obtained based on the after repair value of the home. That means that the borrower can secure enough money to purchase the property itself as well as obtain more money to cover the cost of repairs. For a fix and flip property, that’s an ideal scenario.

Another advantage of these loans is that most of the time, the lender can close on them fast. That is because there are fewer regulatory requirements that must be followed for the borrower to obtain the loan. Most often, these loans can close within 30 days though some could be longer. With fewer requirements on things like inspections and appraisals, borrowers can get the funds they need sooner. There are also fewer requirements for borrowers when it comes to credit qualifications.

Hard money mortgage lenders in Delaware can help with many types of homes. This includes fix and flip homes, bridge loans for properties that are under construction, commercial real estate developments, as well as rental investments. These loans are likely to be refinanced within a short term, usually 1 to 5 years, and that process can often be done quickly as well. For the investor that needs to act quickly to secure the loan they need for a home to purchase for an investment, Delaware hard money loans could be one of the best opportunities to do that.

If you’re looking to explore hard money in other states, check out our national overview of hard money lenders as a starting point in your search.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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