What lenders actually need before they fund — the honest answer on credit checks, how much cash you need beyond the deposit, the seven documents, and two requirements that catch borrowers out at closing.
It is half true, and the half that is not true costs people money.
Your credit does not decide whether you are approved. The property does. Plenty of lenders set no minimum score at all, and income verification, W-2s, employment checks and debt-to-income calculations are genuinely skipped — which is exactly why self-employed investors use this product.
But most lenders still pull your credit, usually a soft pull, and it moves your pricing rather than your eligibility. Scores from roughly 600 to 660 are widely acceptable. Below that you are not declined — you are quoted a larger deposit, a lower loan-to-value, or extra fees to offset the risk. Some lenders will go to 550. Others set 640 as their floor.
So pull your own report before you apply. If the score is borderline, paying down balances or disputing an error can be worth more than shopping for a better rate.
| Requirement | Typical 2026 | Notes |
|---|---|---|
| Credit score | None to 640 | Varies enormously. Our lending partners are at 600 for fix-and-flip and bridge, with no minimum on DSCR. |
| Down payment | 10–30% | Depends on the structure and your experience. Some private lenders want far more equity — 40% to 55% LTV on the riskiest deals. |
| Cash reserves | 3–6 months | Held after closing, to cover holding costs if the project runs long. Overlooked more often than any other requirement. |
| After-repair value | Defensible | Backed by recent comparable sales from that neighbourhood. Optimistic comps are the commonest cause of a decline. |
| Scope of work | Line-item | With contractor bids attached. Underwriting will test it. |
| An entity | LLC or corp | These are business-purpose loans. They are not written to you personally. |
| Exit strategy | Timeline-based | Sale or refinance, dated, and evidenced. Not described. |
Have these ready and you close in seven to fifteen days. Assemble them after you apply and you will not.
Add the scope of work with bids, the comparable sales supporting your ARV, and a written exit. That is the complete file.
Experience moves your terms more than almost anything else, and most borrowers present it badly — as a claim rather than a record.
Build a one-page list of your completed projects, and for each one give the original purchase price, the rehab cost, the after-repair value, what actually happened, how much you borrowed, and how long it took you to pay the loan off. That last column is the one lenders care about most, and it is the one people leave out.
If this is your first deal, say so plainly. Lenders price inexperience; they do not generally refuse it. A first-timer with conservative numbers, real contractor bids and a credible exit is a better file than an experienced flipper with an optimistic ARV.
If you reach the end of the term without an exit, a lender has three options: a paid extension, usually one to six months for one to two points; an internal refinance into another short-term product; or foreclosure on the property.
Arrange the fallback before you close, not when the clock runs out. That normally means knowing whether the property would qualify for a DSCR refinance — and checking the ratio, the leverage and the reserve requirements while you still have the option of walking away from the deal entirely.
Business-purpose hard money is governed by state lending and licensing law rather than by the federal consumer mortgage rules that cover a home you live in. That is why requirements differ noticeably between states, and why a lender who works easily in Texas may not be able to help in another.
Ask early where the property is and whether that lender can work there. It is a faster conversation than discovering the answer after an application. We broker across most of the country, and there are places we cannot — we will tell you which before you go under contract rather than after.
Most pull credit, usually a soft pull, but it does not decide approval the way it does on a conventional mortgage. It moves your pricing and your leverage. Some lenders set no minimum at all; others sit around 600 to 660, and a few require 640.
Widely acceptable from about 600 upward. Our lending partners are at 600 for fix-and-flip and bridge, with no minimum on DSCR because that product is qualified on the property's rent. Below 600 you are more likely to be quoted a bigger deposit than declined outright.
Commonly 10% to 30% of the deal depending on structure and experience, plus points and closing costs in cash. Some private lenders want considerably more equity on higher-risk collateral.
Yes, and it is the requirement borrowers forget. Lenders typically want three to six months of holding costs available after closing — interest, taxes, insurance and utilities.
Usually. The loan is written to your entity, but most lenders require you to guarantee it personally, so the company does not shield you the way investors often assume. Ask, and read what it covers.
A builder's risk policy covering the property during renovation. Ordinary homeowner's cover does not do it, lenders will not fund without it, and arranging it late delays closings regularly.
Seven to fifteen days is normal with a complete file. Three to five days happens, but usually for repeat borrowers with a current pre-approval on a property the lender already knows.
Say so. Lenders price inexperience rather than refusing it. Conservative numbers, real contractor bids and a credible exit make a stronger first-time file than an experienced borrower with an optimistic after-repair value.
Answer these and we will tell you whether it is fundable, on what terms, and how fast it could close. Investment property only — we do not lend on a home you will live in.
We will run the numbers and come back to you. If it is time-sensitive, call 903-636-7511.
Dominion Hard Money arranges private and asset-based real estate financing for business purposes only. Not a commitment to lend. All loans subject to underwriting, property review, and approval. Terms vary by property, borrower experience, and exit strategy.