8 Best Hard Money Lenders in Virginia

The Commonwealth of Virginia is a Mid-Atlantic state that sits on the Atlantic Ocean and Chesapeake Bay. An area that’s known for its diverse natural landscapes and history, this area of the country is a thriving, modern state. It’s home to Fairfax county, the most populated subdivision in the country. Overall, the state has a population of 8.65 million people, though about 35 percent of those people live within the Baltimore and Washington Metro area.

As for the state’s economy, it provides important agricultural commodities to the U.S. It also has a strong tourism sector thanks to its location near Washington D.C. and the coastal towns. Its largest cities include Norfolk, Chesapeake, Chesterfield, and Virginia Beach, while Arlington, Alexandria, and Portsmouth are also large areas here.

With a vibrant quality of life, the cost of living in Virginia is higher than it is in many other states. The median sale price of a home in Virginia is currently $390,000, according to the Virginia Realtors Association, and home prices continue to increase. Home values are high here for many reasons, including loan affordability, limited new construction in some areas, and more modern homes. Properties are somewhat limited in some areas, too. Virginia has followed most of the country in increasing real estate values over the last 10 years.

In terms of rental property, there is good potential here for some investors. The U.S. Census Bureau states that 73.3 percent of people in the state own their homes, and 26.7 percent rent them. What is most interesting is that just 2.45 percent of rentals are vacant. That may indicate there are some areas where new rental property could be seen as a good investment. Also, note that there are some areas where short-term rentals for vacationing are also a solid investment in this region.

How hard money loans work

Virginia lenders offer hard money loans for investment real estate throughout the state. These lenders are typically private investors or groups of investors who work together to help support the needs of borrowers who typically do not qualify for a traditional real estate loan through a bank or credit union due to restrictions and overall qualifications.

Hard money lenders in Virginia do have high standards, and many of them will not lend to those who cannot meet their credit qualifications or have a down payment. Yet, what makes these lenders unique is that they each set their own terms and conditions. That may provide borrowers with more flexibility when obtaining these loans.

Hard money loans in Virginia are competitive financing options meant for income-generating or other investment property, not homes for the buyer to live in. These properties carry a risk of default at a higher rate as a result. However, they are secured loans backed by the value of the property behind them.

One core difference in these loans compared to conventional loans is that they are sometimes based on the after repair value (ARV) of the property, which is often much higher than the current value. This provides borrowers with more of the flexibility they need.

Most hard money lenders in Virginia offer short term loans. These often are no more than five years in length. Yet, that often is ideal for those who are purchasing fix and flip projects, rental income properties, or bridge loans for other types of investment real estate. It is expected the homes would be sold or, in some cases, refinanced into lower interest rate loans.

8 Top Virginia hard money lenders

If you’re in the market for a real estate investment project in Virginia, consider these hard money lenders that are available for projects in the state.

1. BridgeWell Capital 

BridgeWell Capital got started in 2008 and, according to their website, has funded over $500 million in real estate investment deals. They lend throughout the midwest and eastern part of the country and offer the typical suite of private money financing.

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

• Rental loans require 25% down
• Residential and commercial properties ok
• No tax returns or income verification
• 5-year rental loan term
• Fix and flip loans can cover 100% of rehab costs
• Up to 75% ARV
• No interest on undrawn rehab funds
• No pre-payment penalty

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. New Funding Resources

Started by Kyle Sennott, New Funding Resources focuses primarily on the Maryland, DC and Virginia areas to provide real estate investors access to private capital to renovate or operate single, multi-family and commercial properties.

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

• Pre-approvals provided within 24 hours
• Loans based on projected after-repair value
• Can fund up to 65% of ARV
• Loans can cover 100% of purchase price and 90% of loan-to-cost
• Fix-and-flips, buy-and-hold, bridge and non-recourse loans 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 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. Fund That Flip

Fund That Flip is a hard money lender based in New York that focuses on short term bridge loans for real estate investors looking to flip properties. Founded by Matt Rodak in 2014, Fund That Flip lends in most states.

We contacted Fund That Flip to learn more about their bridge loan program and here is what we found:

• Up to 80% LTC and 70% ARV ratios for your project
• Rates start at 9.99%
• Direct lender with discretionary capital
• Construction projects ok
• 10% down payment 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.

6. 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.

7. 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
• Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
• Up to a 75% LTV
• 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.

8. 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 charge
• 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.

How are Virginia hard money loans from other loans?

Virginia hard money loans are different from the traditional conventional loan. These are not backed by the federal government, which means there is less regulatory oversight involved in these loans. More so, borrowers will find that lenders are able to be more flexible such as with property being in poor condition and needing substantial repairs. Investors do want to be sure the property is a good investment, though. That means they will require insight and a good amount of research to ensure it is a solid opportunity.

Unlike a refinance on an existing property, you can use a hard money loan for a new purchase. This gives you a chance to step into the real estate market with private money lenders when you see something you really like in your purchase price budget. With plenty of loan options to choose from, you can evaluate a private money loan as one alternative. Traditional loans come with some requirements that cannot be waived, which is hard for some people who want to invest in real estate projects like residential properties. The loan process for commercial hard money loans or investment property loans can vary from one lender to another.

There are fundamental differences between Virginia hard money lenders and their loans. For example, interest rates are typically 8 to 15 percent, which is often double or more than that of most conventional loans today. In addition to this, these loans tend to have higher closing and other fees, which makes them more expensive overall.

The ARV of the home is a big factor for most borrowers. In conventional loans, lenders use only the current value of the home to determine how much to lend as well as if the property is a good buy for the lender. With hard money lenders, they may be willing to consider the ARV at up to 70 percent of the borrowed funds or sometimes will fund more. For investors who want to look for ways to reduce their personal investment risk, this could be ideal.

Hard money lenders are readily available to work with borrowers of all types. Some may not have as strict of requirements for down payments, while others may be more willing to offer loans to borrowers with a lower credit score. However, all lenders have restrictions and limitations to help safeguard the funds they put into these properties. For quality projects where the return is obvious, lenders are likely available.

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