What does hard money really cost versus conventional over your hold? Compare interest and fees side by side — then weigh the speed and qualification differences that don't show up in dollars.
Estimates for informational purposes only — not a loan offer, commitment, financial advice, or a lending decision. Program limits shown are illustrative and vary by lender.
Conventional financing is cheaper when it's available — no argument. But it's slow, it demands full income documentation, and it won't fund a property that isn't habitable. Hard money trades a higher cost for speed, flexibility on condition, and asset-based qualification. For a distressed flip on a tight timeline, the “expensive” option is often the only one that closes.
Over a six-month hold, the dollar gap between the two is usually a few thousand dollars — set against a deal that hard money makes possible and conventional would miss. Compare the all-in cost here, then ask whether conventional could actually close your deal at all. Honest framing is what earns trust with real investors.
Almost always on paper — higher rate plus points. Over a short hold the gap is real but bounded, and hard money wins on speed, property condition, and qualification. The right question is whether conventional is even available for your deal and timeline.
When speed wins the deal (competitive offers, auctions), the property won't pass conventional condition standards (distressed, needs rehab), or you can't document income the way a bank requires. For a quick flip, the extra cost is often small next to the profit it enables.
We amortize the conventional loan and sum the exact interest paid over your hold via an amortization loop, then add closing costs — so it's the real interest for those months, not an approximation.