Hard Money Lenders San Antonio: Flexible Loan Options
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Sam Dadofalza Associate EditorClose
Sam Dadofalza Associate EditorSam Dadofalza is an associate editor at HomeLight, where she crafts insightful stories to guide homebuyers and sellers through the intricacies of real estate transactions. She has previously contributed to digital marketing firms and online business publications, honing her skills in creating engaging and informative content.
Looking to fund your next real estate project in San Antonio with a hard money loan? Whether you’re scoping out a charming fixer-upper in Woodlawn or planning to purchase a commercial property downtown, hard money lenders in San Antonio offer the speed and flexibility you need. This financial tool serves as an alternative to traditional financing, especially useful for those with tight project timelines, limited capital, or credit challenges.
Start Making Offers Without Waiting to Sell Your Home
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
For those not involved in real estate investing but want to bridge the gap between buying and selling, we’ll explore some practical alternatives to leverage your home’s equity. This guide will walk you through the essentials of hard money lending in San Antonio, helping you determine if this financing option aligns with your real estate investment or home-buying goals.
What is a hard money lender?
A hard money lender is a private individual or company that offers short-term loans secured by real estate. Unlike traditional lenders, who focus heavily on the borrower’s creditworthiness and income, hard money lenders in San Antonio prioritize the value of the property being used as collateral. They often cater to real estate investors, including house flippers and rental property buyers, who need quick access to funds and flexible terms.
To determine the loan amount they are willing to offer, hard money lenders use the after-repair value (ARV), which is the estimated value of a property after all renovations and fixes are completed. They lend a percentage of the ARV to ensure the investment’s profitability and security.
Hard money loans generally have higher interest rates, ranging from 8% to 15% or more, and shorter repayment periods, usually between six and 24 months. Additional costs can include origination fees, closing costs, and points, which are a percentage of the loan amount. If a borrower fails to repay a hard money loan, the lender can seize the asset to recover their investment.
How does a hard money loan work?
If you’re a real estate investor in San Antonio seeking a fast and flexible financing solution, hard money loans might be the perfect fit. Here’s a quick overview of how hard money loans work:
- Short-term loan: These loans usually have a repayment period of six to 24 months, unlike the 15- or 30-year terms of conventional mortgages. Some lenders might extend the term up to 36 months if necessary.
- Faster funding: When you need to close a deal quickly, hard money loans can be approved within days, compared to the 40 to 50 days typical for a mortgage loan.
- Less focus on creditworthiness: Approval relies less on your credit score or income history and more on the property’s value.
- Greater scrutiny on the collateral: These loans require collateral, such as a home, and consider the property’s loan-to-value (LTV) ratio.
- Non-traditional lenders: Hard money loans are usually provided by individual investors or private lending companies, not traditional banks.
- Loan denial: These loans are often used by those with poor credit who have been denied a mortgage but have significant home equity.
- Higher interest rates: Due to the higher risk, hard money loans have higher interest rates than traditional mortgages.
- Larger down payments: Borrowers may need to provide a larger down payment, sometimes up to 20% to 30%, depending on the property’s value and loan specifics.
- More flexibility: With less government regulation, hard money lenders in San Antonio can set flexible credit scores and debt-to-income criteria, and loans can help homeowners avoid foreclosure.
- Interest-only payments: Unlike traditional mortgages, hard money loans may allow for interest-only or deferred payments at first.
What are hard money loans used for?
Hard money loans serve specific needs within the San Antonio real estate market. They’re a go-to financing solution among investors and homeowners who require quick funding or face challenges with traditional bank loans. Here’s a look at common uses for hard money loans:
Flipping a house: If you’re a San Antonio investor flipping homes, hard money loans can be a big help. They get approved and funded fast, letting you buy, fix up, and sell properties quickly for a profit
Buying an investment rental property: If you’re looking to invest in rental properties, hard money loans make it easy to grab places that need some work. Getting funds quickly lets you finish renovations and start earning rental income sooner.
Purchasing commercial real estate: In the commercial real estate sector, timing is often critical. Hard money loans give you the flexibility and fast funding you need to secure commercial properties quickly, making them a great option for time-sensitive investments.
Borrowers who can’t qualify for traditional loans: If you have a lot of home equity but a less-than-perfect credit score, hard money lenders can be a good option. These loans focus more on your property’s value than your credit, giving you another way to secure financing.
Homeowners facing foreclosure: If you’re a homeowner facing foreclosure, a hard money loan can be a lifesaver. It can help you refinance debt or give you extra time to sell your home, keeping your credit from taking a big hit.
How much do hard money loans cost?
The cost of hard money loans is typically higher due to the increased risk and convenience of fast, flexible funding. Here are some typical costs associated with hard money loans:
- Interest rates: These can range from 8% to 15% or higher, depending on the lender’s risk assessment.
- Origination fees: Lenders may charge 1% to 5% of the total loan amount.
- Closing costs: Additional fees at closing can include legal fees, appraisal fees, and other administrative costs.
- Points: Lenders might charge points (a percentage of the loan amount) upfront, adding to the initial cost.
Online hard money calculators can help estimate these costs accurately.
Alternatives to working with hard money lenders
If you’re not an investor, but rather a homeowner looking to tap into your current home’s equity, you may want to consider the following options:
Take out a second mortgage: Use your home’s equity by obtaining a home equity loan or a home equity line of credit (HELOC), which generally offers lower interest rates compared to hard money loans.
Cash-out refinance: This strategy allows you to refinance your current mortgage, extracting cash from the home’s equity to fund new investments, often with more favorable interest rates.
Borrow from family or friends: Personal loans from family or friends can provide flexible repayment terms and potentially lower or no interest rates, making them a cost-effective alternative.
Use a government-backed loan program: Programs from the FHA, VA, or USDA can help you purchase homes with smaller down payments and reduced interest rates, easing the financing process.
Consider peer-to-peer loans: Borrow through peer-to-peer lending platforms, where individual investors provide funds. These loans can offer unique terms that are different from traditional and hard money loans.
Explore specialized loan programs: Look into specialized financing options designed for fixer-uppers or refinancing existing investment properties, which might offer better terms than a hard money loan.
Request a seller financing option: Some sellers may offer to finance the purchase themselves, potentially lowering closing costs and easing qualification criteria.
How to buy before you sell
Imagine finding your dream home in San Antonio just as it hits the market, perhaps a Craftsman-style house in Southtown or a newly-built townhouse near the Pearl District. With HomeLight’s Buy Before You Sell (BBYS) program, you can secure that new home even before selling your current one, making the transition smoother and less stressful.
The Buy Before You Sell program allows you to use the equity in your current home to make a compelling, non-contingent offer on a new property. If your home qualifies, you can get an equity unlock amount approved within 24 hours, with no initial cost or commitment. This enables you to buy your new home first and sell your old one after, avoiding the inconvenience of moving twice.
Here’s how HomeLight Buy Before You Sell works:
While the program charges a flat fee based on your home’s selling price, you can save a lot by avoiding temporary housing, double-moving costs, and, at the same time, potentially secure a better deal on your new home. Moreover, HomeLight’s BBYS fees are generally lower than the interest rates on bridge loans, which typically range from 9.5% to 12%.
3 top hard money lenders in San Antonio
If you think a hard money loan suits your real estate investment goals, we’ve rounded up three of the top providers to help you secure fast, flexible financing for your next real estate project. Whether you’re flipping, refinancing, or tackling a fixer‑upper, these lenders stand out for competitive terms and reliable service:
Longleaf Lending
Longleaf Lending is a hard money loan provider established in 2020, built on a commitment to delivering efficient and dependable real estate financing. Since its inception, the company has funded more than 800 loans, totaling over $200 million in volume.
Their streamlined process allows qualified borrowers to secure funding within 48 hours, enabling investors to act quickly in competitive markets. Backed by deep industry expertise, the team offers guidance that extends beyond lending, ensuring clients receive thoughtful support throughout their projects.
Lending clientele: Residential and commercial real estate investors
Loan criteria: Up to 70% ARV
Longleaf Lending earned a high average review score of 4.7 stars on Google. Clients say the team consistently delivers fast, reliable financing when time is critical. They appreciate how clearly everything is explained, making the loan process feel smooth and manageable from start to finish. Many note that the team’s professionalism and commitment to helping investors succeed set them apart from other lenders.
Website: longleaflending.com
Phone number: 979-200-2823
Longhorn Investments
Longhorn Investments, established in 2008, provides hard money financing for single-family, multi-family, and commercial real estate projects. The company is known for its rapid turnaround, with standard closings completed in three to five business days, depending on location.
In select situations, Longhorn Investments can fund a deal in as little as 24 hours. With more than 10,000 loans originated since inception, the firm has built a strong track record of speed, reliability, and investor-focused service.
Lending clientele: Residential and commercial real estate investors
Loan criteria: Up to 75% of the ARV (excluding points and fees)
Boasting a 5-star rating on Google with over 200 reviews, Longhorn Investments is commended for its smooth loan process, fast communication, and supportive staff. Some emphasize how the team delivers fast, reliable service, even jumping in on short notice to close deals that other lenders couldn’t finish. Several reviewers praise the staff’s responsiveness, calling the experience top-notch.
Website: longhorninvestments.com
Phone number: 214-420-7330
Little City Investments
Little City Investments, based in nearby Austin, was established in 2006 by a seasoned real estate broker with extensive experience in flipping and development. As a direct lender, the company provides a wide range of financing solutions for both residential and commercial real estate investors.
Serving the San Antonio, Austin, Houston, and Dallas markets, they offer fast closings, often within three to five days, with loan decisions driven primarily by the property’s value rather than the borrower’s credit or income.
Lending clientele: Residential and commercial real estate investors
Loan criteria: Up to 75% LTV
Little City Investments has a 5-star rating on Google based on a limited number of reviews. Several customers highlight their quick closing times, responsiveness, and honesty. Others say that the company makes the lending process smooth and organized.
Reviewers highlight how the team handles everything professionally, from inspections to paperwork, keeping clients informed during and even after closing. Many appreciate the fast turnaround, with loans closing in about two weeks, and highly recommend Little City Investments for reliable hard money financing.
Website: littlecityinvestments.com
Phone number: 512-577-6049
Hire an investor-friendly real estate agent who can help you get access to off-market properties at a discount and assess potential rental income based on market trends. HomeLight can connect you with investment property specialists at no cost.
Investing in real estate?
Should I partner with a hard money lender in San Antonio?
The decision to use a hard money lender in San Antonio should be based on your specific circumstances and real estate investment goals. This type of financing is particularly well-suited for real estate investors needing quick access to funds, especially for projects with short timelines or when traditional financing just isn’t feasible.
If you’re prepared to handle higher costs and shorter repayment terms for the sake of fast, flexible funding, connecting with a hard money lender in San Antonio might be the right move for your next investment opportunity.
But if you’re a homeowner looking to tap into your home’s equity without dealing with high interest rates, HomeLight’s Buy Before You Sell program is a great alternative. Rather than facing steep interest rates, you’ll pay a small flat fee and enjoy the benefits of a competitive offer and an easier moving process.
As with any major financial decision, it’s important to consider your long-term strategy and consult with a financial advisor to make sure it aligns with your overall investment goals. If you’re looking to connect with real estate agents in San Antonio who can introduce you to trusted hard money lenders, HomeLight can help you find top professionals in your area.
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