Residential Loans
What Are Residential Hard Money Loans?
Residential hard money loans are short-term financing tools primarily used by real estate investors. These loans are backed by the value of the property rather than the borrower’s credit history. They’re commonly used for buying, renovating, or flipping homes. Unlike traditional bank loans, hard money loans are issued by private lenders or specialized lending firms—like Action Funding. With fast approval and adaptable terms, they’re ideal for investors who need quick funding or who may not qualify for traditional mortgages due to credit challenges or unconventional financial situations.
Key Characteristics of Residential Hard Money Loans
- Property-based approval: These loans are secured by the property's value, not the borrower's creditworthiness—making them accessible even to those with less-than-perfect credit.
- Short durations: Loan terms usually range between 6 and 24 months.
- Higher interest rates: Typically, between 8% and 15% due to the increased risk for lenders—something to evaluate and discuss with your lending partner.
- Speedy funding: Approval and funding can happen within just a few days.
When to Consider a Residential Hard Money Loan
These loans are especially useful for:
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Investors flipping properties on a short timeline
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Buyers needing fast capital for time-sensitive deals
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Individuals unable to secure traditional financing due to credit or property condition issues
It’s crucial to fully understand the terms, fees, and risks involved—and to have a clear repayment plan in place.
Benefits of Residential Bridge Loans
Residential bridge loans provide homeowners with flexible, short-term financing to help them manage the transition between selling one property and buying another. Unexpected expenses or timing issues can delay the sale of a current home, but a bridge loan gives you the cash flow needed to move forward with your new purchase. Because these loans are designed to be adaptable, they can be tailored to fit your specific situation. Our team can help you secure the funds you need to stay on track with your home purchase or renovation plans.
Residential Bridge Loans vs Traditional Residential Loans
Residential bridge loans differ significantly from traditional mortgages. While a traditional loan is structured for long-term repayment, a bridge loan offers short-term funding to “bridge the gap” between transactions. Homeowners often use these loans to buy a new property before their existing one sells. Although bridge loans typically carry higher interest rates due to their shorter terms, they provide fast access to capital—something traditional lenders often cannot offer on short notice.
How Residential Bridge Loans Work
Also known as interim or gap financing, a residential bridge loan gives you the flexibility to act quickly when an opportunity arises. For example, if you find your dream home but your current house hasn’t sold yet, a bridge loan allows you to use the equity from your existing property to fund the new purchase. Once your original home sells, you can repay the bridge loan in full. This type of financing helps you avoid the stress of rushed sales or missed opportunities while maintaining control of your timeline.
Types of Loans We Offer
Our team provides a variety of loan solutions designed to support the success of your project. We offer the following loan types, along with several other customized options:
Why AFI Private Lenders?
At Action Funding, we pride ourselves on offering a personalized and relationship-driven lending experience. As a family-owned business, we prioritize building genuine connections and taking the time to understand your unique investment goals.
Rather than navigating generic loan processes or large institutions, you’ll work directly with our experienced team for guidance at every step. We focus on making the process smooth, transparent, and customized to your needs.
Our financing is designed specifically for real estate investors. With quick decisions, flexible structures, and full cost transparency, you’ll always know what to expect. We’re here to empower you with the support and clarity needed to make confident decisions in your real estate ventures.
Let's Fund Your Next Deal
Reach out today to see how our residential hard money loans can help bring your investment plans to life. When the banks say no, we’re here to say yes. We act as your private lender—helping you move quickly and confidently on real estate-backed opportunities.