The Quick Read: Yes. Hard money and bridge loans are built around the property, the deal, and the exit plan, so where the borrower lives does not decide the file. What does decide it is whether the lender is active in the property’s state, whether a local appraisal supports the value, and whether the exit works.
- Underwriting is asset-based: property, plan, and exit come first, though lenders still look at reserves and experience.
- Lender state coverage and local appraisal are the real friction points for remote buyers, not your home address.
- Across Lendmire’s wholesale network, fix-and-flip leverage is tiered by completed projects, and every tier is capped at 75% of after-repair value.
- Terms run 6-18 months, interest-only, so the exit has to be lined up before closing.
- Many investors exit into long-term DSCR financing once the property is stabilized.
Everything below is a typical range that varies by lender, property, and experience. Nothing here is a commitment to lend.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
Does Being Out of State Change Anything?
Distance changes the logistics more than the approval. A lender that funds in the property’s state does not treat a borrower from another state as a different category. The questions shift from “where do you live” to “who is on the ground.”
Most banks are different. Local community banks often pass on a borrower who is not from the area, which is why remote investors end up in private and asset-based capital. An investor-education guide from Tellus says the same thing qualitatively: the lender should be licensed in the target state, and the appraisal comes from a local appraiser.
Three things get checked on remote files:
1. State coverage. Not every hard money lender funds in every state. The network Lendmire works with covers 41 markets, including Washington, D.C., but it is not available in Louisiana, Minnesota, North Dakota, or South Dakota, or in Baltimore, Chicago, or Detroit. Confirm the property sits inside the footprint before anything else.
2. Local appraisal. The value comes from an appraiser who knows the submarket. Thin comps in small or rural markets can produce low values, and a low value cuts the loan.
3. Local team. Lenders want to see who manages the rehab, who inspects draws, and who will manage the property afterward.
Bridge Loan, Hard Money, Fix-and-Flip: What’s the Difference?
The terms overlap heavily in investor use, which causes confusion on remote files. Pin them down before you request terms.
- Hard money describes the source: a private, non-bank lender that lends against the property.
- Bridge loan describes the purpose: short-term money that carries you until a sale or longer-term financing arrives.
- Fix-and-flip loan is a bridge loan with a rehab budget attached, funded in draws.
In practice a lender may call the same product any of the three. What matters is the structure: the leverage tier, the term, and the exit it assumes. Experian’s consumer explainer describes hard money as secured by the property, with approval resting on whether the property is a sound investment. Lenders may still review your finances to confirm reserves. Credit is de-emphasized, not ignored.
What the Network Actually Offers
Program mechanics come from the lenders Lendmire places files with, and they are the same whether you live next door or two time zones away.
| Item | Typical range in the network |
|---|---|
| Fix-and-flip, 5+ completed projects | 93% of project cost |
| Fix-and-flip, 2+ completed projects | 90% of project cost |
| Fix-and-flip, fewer than 2 | 85% of project cost |
| Cap on every fix-and-flip tier | 75% of after-repair value |
| Bridge purchase, no rehab | Up to 80% of purchase price |
| Cash-out or rate/term refinance | Up to 65% of value |
| Rehab budget | Up to 100% funded in draws |
| Term | 6-18 months, interest-only |
| Credit | 620 minimum, added conditions below 660 |
| Loan size | Up to $5,000,000, larger by exception |
Two reading notes. First, the 93%, 90%, and 85% figures are loan-to-cost, not loan-to-value. The 75% after-repair-value cap sits on top of them, and whichever limit is lower governs. Second, the 100% figure applies to the rehab budget, released in draws against completed work. There is no true 100% purchase program. The top leverage tier is reserved for experienced investors, and first-time investors qualify at the lower tiers.
Collateral is non-owner-occupied residential, 1-4 units, with ground-up construction available up to 10 units. Commercial, land, hospitality, and owner-occupied property are not on the sheet. The terms vary by lender, property, and experience.
The network figures above are the ones that apply to files Lendmire places.
How a Remote Deal Moves, Step by Step
Here is the sequence on a typical out-of-state file.
1. Pick the structure. Decide whether you need a bridge purchase with no rehab or a fix-and-flip with a budget. This sets the leverage tier and the draw schedule.
2. Confirm state coverage. Before you spend on an offer, confirm the property’s state is in the lender’s footprint. You can also check a lender’s licensing through the NMLS consumer lookup.
3. Submit the deal. The package covers the property, the purchase price, the scope of work and budget, and your plan. The lender underwrites against after-repair value and loan-to-cost.
4. Assemble documents. A typical package includes your experience or track record, a personal financial statement, the scope of work and budget, entity documents if you buy in an LLC, and sometimes bank statements. Overlays vary by lender.
5. Get the local appraisal. The lender orders it, and it comes from an appraiser in the property’s market. This is where a remote buyer has the least control, so the purchase contract should reflect comps you have already checked.
6. Close and fund. Purchase funds go out at closing. Rehab money follows in draws against completed work, usually after an inspection.
7. Execute and exit. You repay by sale, refinance, or payoff. Interest-only payments run until then, with no prepayment penalty on the program.
Wire safety matters on a remote closing. Confirm wire instructions by phone with the title company at a number you looked up yourself, never from an emailed number.
Entity Setup and the Business-Purpose Question
Most out-of-state investors buy through an LLC, subject to lender program eligibility. Have the operating agreement, articles, and good-standing paperwork ready. Check with your title company whether the entity needs to register to do business in the property’s state. That is a state-specific question, and counsel can answer it.
These loans are business-purpose credit on non-owner-occupied investment property. Under the federal rule on business-purpose credit, credit extended primarily for a business or commercial purpose is exempt from the consumer-credit framework, and the regulation text at eCFR sets out that exemption. Occupancy changes the analysis. A compliance-industry explainer notes that owner-occupied rentals turn on unit count, with thresholds of more than 2 units for acquisition credit and more than 4 for improvement credit. A bridge loan on a home you will live in is a different, consumer-protected product and is not what this article covers.
Running a Rehab You Can’t Walk
The loan is rarely the hard part. The project is. A remote borrower needs three things lined up before closing:
- A contractor with a written scope and budget. Draws release against completed work, so a vague scope stalls money.
- Someone to verify progress. Draw inspections confirm work before funds release. If you are not on site, a trusted local agent or project manager has to be.
- A property manager for the exit. Lenders, especially DSCR lenders on the takeout, want to see professional management in place.
Build slack into the schedule. The term runs 6-18 months, and a rehab that slips eats runway you needed for the refinance.
The Exit Decides Whether This Works
A bridge loan is only as good as its exit. Every term on this product is short, so the plan for repayment comes first.
The two exits are sale and refinance. For a buy-and-hold investor, many refinance out of hard money into long-term DSCR financing once the property is stabilized, and Lendmire brokers that path. A DSCR loan qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The investor never has to present personal income as the main qualifier.
Failure on the takeout usually comes from a short list:
- Rent comes in too low to cover the payment at the loan size you need.
- The appraisal falls short of the value you planned on.
- Seasoning is not met. That is lender policy, not law, and it varies.
- Reserves are thin at the time of the refinance.
- The bridge matures before lease-up finishes.
In select programs, 1.00 coverage is where many files start, with stronger ratios opening better leverage and pricing. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Clearing 1.00 is also not the same as positive cash flow. Coverage compares rent to the monthly payment only. Repairs, vacancy, management, and capex sit outside it. The complete DSCR loans guide walks through the takeout side in more detail.
If the bridge may mature before the property qualifies for the takeout, talk about an extension before closing, not after. This is also where vetting the lender matters. Lendmire’s piece How an Out-of-State Investor Vets Hard Money for a DSCR Exit covers what to ask.
When This Fits and When It Doesn’t
| Situation | Fit |
|---|---|
| Win a deal a bank won’t fund in time | Strong fit |
| Rehab with a solid local team and clear exit | Strong fit |
| Rural market with thin comps | Higher appraisal risk |
| No contractor or manager identified | Poor fit until fixed |
| Exit depends on an uncertain refinance | Poor fit |
| Hold with no rehab and stable rent | Often better as a DSCR purchase loan |
Out-of-state buyers often invest remotely because local prices make cash flow hard, a point Tellus makes in the same guide. The cost of that choice is a short fuse. You need a sale or refinance planned in a market where you have no on-the-ground presence.
Key Terms Defined
- After-repair value (ARV): the estimated value of the property once the rehab is finished.
- Loan-to-cost (LTC): the loan amount as a share of the purchase price plus rehab budget.
- Draw: a release of rehab funds after completed work is verified.
- Seasoning: the time you must own or hold a property before a lender will refinance it.
- Takeout: the long-term loan that pays off the bridge.
- DSCR: debt service coverage ratio, monthly rent divided by the monthly payment.
Frequently Asked Questions
Will a hard money lender fund me if I live in another state?
Yes, if the lender is active in the property’s state and the deal supports itself. The borrower’s home state is not the deciding factor. The property, the plan, and the exit are.
Does the lender need to be licensed where the property is?
Yes, in the sense that the lender has to be authorized to lend there. That is why footprint is the first check. You can look up a lender’s licensing on the NMLS consumer access site. Lendmire’s network is not available in Louisiana, Minnesota, North Dakota, South Dakota, Baltimore, Chicago, or Detroit.
Can I borrow 100% of the purchase and rehab?
No. There is no true 100% purchase program. Up to 100% of the rehab budget can be funded in draws, but the purchase itself is financed at a loan-to-cost tier of 85%, 90%, or 93% depending on completed projects, capped at 75% of after-repair value. It varies by lender, property, and experience.
What credit score do I need?
A 620 minimum, with additional conditions below 660. First-time investors qualify at the lower leverage tiers. Underwriting stays asset-based, so the property, plan, and exit still carry the file.
What if the bridge matures before I can refinance?
You may need an extension, which depends on the lender. Terms run 6-18 months with no multi-year options, so plan seasoning and lease-up inside that window or line up a sale as a backup.
Next Step
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Call 828-256-2183 or request a quote.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines — which works for self-employed investors, LLC operators, and portfolios above four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Tellus – Financing Out-of-State Properties
2. Experian – How Do Hard Money Loans Work
3. CFPB – Regulation Z §1026.3
5. Compliance Alliance – Regulation Z and Investment Properties
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Cash Out a Coastal Rental After Hurricane Damage on a DSCR Loan · Can an Out-of-State Buyer Close a DSCR Loan If Projections Fall? · Hard Money Overrun Documentation for a BRRRR Rehab Into a DSCR Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.