What Makes Hard Money Different From a Bank Loan?
Traditional banks and credit unions base their lending decisions almost entirely on your credit score, tax returns, and debt-to-income ratio. If any of those boxes don’t check out, you don’t get the loan — no matter how good the deal is.
Hard money lending works completely differently. As a 100% asset-based lending program, approval is based on the value of the property — not your personal financial history. Your FICO score is not a factor. Your tax returns don’t matter. What matters is the deal: the property’s value, the equity position, and your exit strategy.
No Minimum FICO Score — How Is That Possible?
Because hard money lenders are private lenders — not banks — they’re not subject to the same regulatory guidelines that force banks to enforce credit score minimums. At Commercial Loans of Texas, we have no minimum FICO score requirement. We do not pull your credit as a condition of approval.
Borrowers who commonly use our no-credit hard money loans include:
- Real estate investors with past foreclosures or short sales
- Business owners with recent bankruptcies
- Self-employed borrowers with low documented income
- Foreign nationals with no U.S. credit history
- First-time investors building their credit profile
If you’ve been turned down by a bank, you can still close a deal with us.
100% Asset-Based Lending: The Property Is the Collateral
When we evaluate a loan request, we look at one primary factor: the value of the real estate. Specifically, we look at:
- Current market value — what the property is worth today
- After-repair value (ARV) — what the property will be worth after renovations
- Equity position — how much skin you have in the deal
- Exit strategy — will you sell, refinance, or rent after closing?
We typically lend up to 65–75% of the property’s value. That equity cushion protects us — so we don’t need to rely on your credit score to make a sound lending decision. The asset backs the loan.
Fast Closings: 5 to 10 business days
One of the biggest advantages of hard money is speed. When an investment opportunity hits the market in Texas, it rarely stays available for 45 to 60 days while a bank processes your application. You need to move fast.
Our typical closing timeline:
- 24 hours: Term sheet issued after you submit your deal
- 2–3 business days: Appraisal ordered and completed
- 5–7 business days: Full closing in most cases
We’ve closed deals in as little as 5 business days when the title was clean and the borrower had everything ready. Compare that to the 45–90 day timeline at most banks.
What Types of Properties Qualify?
Our Texas hard money loans work across a wide range of property types:
- Single-family residential investment properties
- Multi-family (2–50 units)
- Mixed-use properties
- Commercial real estate
- Land with a clear development plan
- Fix and flip projects
- Construction and rehab
We do not lend on primary residences (owner-occupied homes). All of our hard money programs are for investment and commercial properties.
Hard Money Loan Terms in Texas
Here’s what a typical loan looks like for Texas investors:
- Loan amounts: $100,000 to $5,000,000+
- LTV: Up to 65–75% of as-is value or ARV
- Rates: Starting at 9% interest-only
- Terms: 6 to 24 months
- Points: 1 to 3 origination points
- Credit check: Not required
- Income verification: Not required — see our stated income loan options
- Closing time: As fast as 5 business days
Is Hard Money Right for You?
Hard money is the right tool when:
- You need to close fast and can’t wait for bank approval
- Your credit score would disqualify you from conventional financing
- You’re self-employed and can’t show two years of tax returns
- The property is distressed or non-warrantable and banks won’t touch it
- You need a bridge loan while you arrange long-term financing
It’s not the right tool if you’re buying a primary residence or if you have plenty of time and strong bank-qualifying income — in that case, a conventional commercial mortgage will cost you less.
Apply Today — No Credit Pull to Get Started
We don’t pull your credit just to give you a quote. Submit your deal details and we’ll send you a term sheet within 24 hours — no obligation, no credit check, no minimum FICO required.
We’ve been a direct hard money lender in Texas since 1998. No brokers. No middlemen. Just fast, common-sense lending based on the asset.
Get Your Hard Money Loan Quote — 60 Seconds to Apply