Other professionals love us.

We think you will too.

I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP

For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann

Let’s Get Started

8 Best Hard Money Lenders in New York

Key Terms

Hard money loans provide a way for real estate investments to happen even when traditional lenders may not approve, such as in the case of fix or flip properties or rental investments.
Though they have a higher interest rate, these loans typically offer a number of key benefits to borrowers, including lower down payment requirements and fewer restrictions.
Finding the right New York hard money lenders is key as not all offer the same terms and conditions, and some are far more difficult to work with than others.

An internationally recognized state, New York has much to offer. There’s no doubt that New York City is the largest city in the state and the country overall, with about two-thirds of the state’s population calling it home. New York State is home to over 20.2 million people, making it the fourth most populous state.

The state is easily recognized for the New York City area, including the Hudson River and the port area. It’s also home to 10 of the most popular tourist attractions, including Times Square, Niagara Falls, and the Statue of Liberty. Yet, New York is more than just the Big Apple. As a state, it has an economy that’s built on Wall Street, tourism, exports, agriculture, and energy production. Others know that New York also has some of the highest real estate values in the country.

As noted, New York’s real estate market is highly valued, especially in the New York City metro area. There is a lot of demand for housing in New York overall, especially in this region. The housing market in New York is highly competitive. The median sale price in June of 2022 was $428,825. That is a 13.1% increase from June of 2021. In some areas, there is significant demand and limited overall available property on the market. That’s data that comes from the New York State Association of REALTORS, Inc.

When it comes to the rental market, there is competition here. About 64% of people here own their homes, and 36% rent, according to the U.S. Census Bureau. More so, about 11% of the rentals in the state are vacant. That’s very subjective to the area of the state, though, with some areas having a much higher level of homes available than others.

Show Me Lenders

How hard money loans work in New York

Hard money loans are real estate backed mortgages that are issued by private investors and companies rather than the traditional big banks. These loans are designed to be more flexible and accessible to qualified borrowers who may be turned away from loans from other lenders. Hard money loans are not simple to get, as lenders still require qualified borrowers with income and proven credit history. Yet, for some, they are one of the most important options available when it comes to buying property that’s considered high-risk.

If you don’t want to or can’t refinance but want new investment properties, a hard money loan might help you get the results faster and easier than a traditional loan. Whether in Manhattan, Brooklyn, Buffalo, Queens, Long Island, the Bronx, Westchester, or somewhere else, investing in rental property in New York might be a goal of yours, but you might need a private money lender to make the property purchase possible.

One of the ways hard money lenders stand out is by offering loans for property that is considered higher risk. This may include fix it and flip it types of homes where borrowers purchase property that may need repairs, make upgrades to it, and then sell it. These homes tend to carry more risk to lenders, as do rental properties from lesser experienced investors. To compensate for the higher amount of risk present in these homes, hard money loans tend to have a higher interest rate than others.

Hard money loans are asset-secured loans. That means that if the borrower stops making payment or otherwise defaults on the loan, the lender has the legal right to pursue legal action, which typically means that they will force the sale of the home through a foreclosure. In doing so, the lender will recoup some of the money it is investing into the loan. This is one of the reasons why these hard money lenders are willing to take on the more challenging and hard to finance loans like those related to real estate.

Get Quotes for Your Loan

8 Top New York hard money lenders

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

1. Alpha Funding

Alpha Funding is based in New Jersey but lends in multiple states throughout the eastern seaboard. The management team consists of Michael Strasser, Matthew Weber, David Hansel and Mark Callazo. They offer a wide range of private money programs, such as fix-and-flip loans, new construction loans, DSCR loans and more.

We contacted Alpha Funding to learn more about their private lending business and here are some of the highlights:

Fix and flip properties, generally require a minimum FICO of 650 and can do a max 70% LTV
12-month term with no prepayment penalty
No prior experience required
Single family and 2-4 unit multifamily properties are ok
Renal properties, generally require a minimum FICO of 680 and a max 80% LTV
Minimum DSCR of 1.0 required
Single family, 2-4 unit multifamily and condo/townhomes are ok properties