The Quick Read: No law sets a minimum credit score for a hard money loan, so each lender writes its own floor, and across the network Lendmire works with the typical floor is 620, with added conditions below 660. Hard money underwrites mainly on the property, the plan, and the exit, but the score still shifts leverage and pricing tiers.
- No federal rule fixes a number. Floors are lender risk policy, and they vary by lender, property, and experience.
- Lendmire’s hard money programs typically start at a 620 score, with additional conditions below 660.
- First-time investors generally qualify at the lower leverage tiers. The top tier is reserved for experienced investors.
- The property and the exit plan carry the most weight, but a weak score can narrow the lender pool.
- The bigger credit test often comes at the exit, when a rental refinance wants its own score.
Investors hear two stories about this. One says hard money ignores credit. The other quotes a hard number as if it were the law. Neither is right. Here is how the score works inside a file, where it flexes, and where it does not.
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.
Is There a Minimum Credit Score for a Hard Money Loan, or Not?
There is no universal minimum. A lender can publish a floor, publish none, or run several programs with different credit rules. What you see online contradicts itself because each page reflects one lender’s policy.
A 620 score is where most files in Lendmire’s network start, with additional conditions below 660. That is a typical guideline, not a promise. It varies by lender, property, and experience, and nothing here is a commitment to lend.
Hard money is asset-based. The loan is secured by real property and is usually short-term, interest-only financing. So the lender’s first questions are about the collateral, not your pay stubs.
Why No Single Number Exists
No rule sets one because these are business-purpose loans. Credit extended primarily for a business purpose is listed as an exempt transaction in the federal consumer-finance regulator’s Truth in Lending exam materials. That is why score floors here are risk policy, not regulation.
Buying or improving a non-owner-occupied rental is treated as business purpose, as Doss Law’s business purpose guide explains. The label is not enough on its own. The exemption turns on actual use. A property you expect to occupy for more than 14 days a year can fall outside the safe-harbor treatment of rental property, per Lexology’s summary of the business purpose issue.
Business purpose does not mean unregulated either. It means fewer consumer-style income and debt-ratio tests. It does not mean no rules.
Gate or Dial: What a Score Actually Does
A score works as a gate at the bottom and as a dial above it. Below a lender’s floor, the file stops. Above it, the score moves leverage, pricing tier, and conditions.
| Factor | Gate | Dial | Rarely matters |
|---|---|---|---|
| Eligibility | Below the lender’s floor | ||
| Leverage bracket | Score and experience | ||
| Pricing tier | Moves in score steps | ||
| Property value | Not tied to score | ||
| Exit plan | Judged separately |
Practitioners describe pricing as moving in steps tied to the middle score, with higher scores buying better terms. That is the dial. A few points of repair before applying can change which tier you land in.
How a Lender Decides, Step by Step
The order matters. Credit is not first.
1. Collateral. The lender orders a price opinion or appraisal. On a rehab, it wants the as-is value and the after-repair value (ARV).
2. Exit. The lender wants to know how it gets repaid, through a sale or a refinance into long-term financing.
3. Credit pull. The score informs approval, the leverage bracket, and the pricing tier.
4. Whose credit. When the borrower is an LLC, some lenders pull credit on members above an ownership threshold and require a personal guarantee. Others underwrite only the guarantor. Ask before you apply, because it changes whose score counts. Entity use is subject to lender program eligibility.
5. Documents. Expect an application, ID, bank statements, a real estate schedule, and often traditional personal-income documentation. Requests vary by lender.
6. Other borrower factors. Experience, liquidity, and deal numbers sit beside credit. A co-borrower can fill gaps.
How Leverage Interacts With Score and Experience
Leverage on these programs is tied to documented completed projects, not only the score. On fix-and-flips, the tiers run 93% of project cost at 5 or more completed projects, 90% of project cost at 2 or more, and 85% of project cost with fewer than 2. Every tier is capped at 75% of after-repair value. These are loan-to-cost figures, not purchase LTVs.
Bridge purchases without rehab go up to 80% of purchase price. Cash-out and rate/term refinances go up to 65% of value. Up to 100% of the rehab budget funds in draws against completed work, which is a budget figure and not a purchase LTV. There is no true 100% purchase program.
Loan amounts go up to $5,000,000, with larger by exception. Terms run 6 to 18 months, interest-only, with no prepayment penalty. All of it varies by lender, property, and experience.
A first-time investor with a 620 score is usually looking at the lower leverage tiers. An experienced investor with several completed projects can reach the top tier. Experience, not just credit, opens the top bracket.
Do Hard Money Lenders Check Credit?
Usually yes. Lenders generally pull credit before pre-qualifying, and ads that say the lender skips the credit review are better read as “no fixed or published minimum.” Treat any promise of no review with caution. Lendmire’s network reviews the property’s rental income, the plan, and the exit, and it still reviews the borrower’s score.
The Exit: Where the Real Credit Test Often Lands
Hard money is bridge capital. Many investors refinance out of it into long-term DSCR investor loans once the property is stabilized, and Lendmire brokers that path. The refinance has its own score tests.
A 620 floor exists in parts of the network, most programs want around 660, and 700 or higher unlocks the strongest leverage tiers. Coverage of 1.00 is where select DSCR programs start, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. A DSCR refinance qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Clearing 1.00 does not mean positive cash flow, since repairs, vacancy, and management sit outside the ratio.
So a bridge loan approved on a thin score can strand an investor if the exit loan wants more. Plan the take-out before you take the bridge. For the permanent side, see Lendmire’s complete DSCR loans guide. Lendmire’s piece Hard Money Approved the Credit Score; Permanent Financing Wants More covers the handoff in more detail.
Hard Money Versus DSCR: Different Credit Rules
These are different products with different jobs. Hard money is short-term bridge or rehab financing, asset-based, with a 6 to 18 month term. A DSCR loan is long-term, rental-qualified financing with leverage tiers tied to score.
| Factor | Hard money | DSCR loan |
|---|---|---|
| Purpose | Bridge, rehab, short-term | Long-term rental hold |
| Term | 6-18 months, interest-only | 30-year fixed, longer terms via select lenders |
| Score focus | Typical start near 620 | Around 660 for most programs |
| Main test | Property and exit | Rent covering the payment |
Common Misconceptions
“Hard money skips the credit check.” Lenders still look at credit. Read “no minimum” as “no published minimum.”
“Credit doesn’t matter.” It affects pricing, leverage, and the lender pool.
“One number applies everywhere.” Market surveys report floors across a wide range, which is exactly why a single answer fails.
“Hard money and DSCR use the same credit rules.” They do not.
Key Terms Defined
Asset-based loan: a loan underwritten mainly on the value of the collateral rather than the borrower’s income.
ARV (after-repair value): the estimated value of the property once the planned work is finished.
Loan-to-cost: the loan amount as a share of the total project cost, used on rehab loans.
Personal guarantee: a promise by the owner to repay if the LLC borrower does not.
Exit strategy: the plan for repaying the loan, through a sale or a refinance.
Frequently Asked Questions
Can I get a hard money loan with a score under 620?
Typically not through Lendmire’s network, where 620 is the usual floor with added conditions below 660. Some lenders elsewhere publish lower floors, and market surveys report a wide spread. Leverage, experience, and the deal itself all move the answer, and every file is underwritten individually.
Does the lender pull my personal score if I use an LLC?
It depends on the lender. Some pull credit on members above an ownership threshold and require a guarantee, while others underwrite only the guarantor. Ask before applying so you know whose score counts.
Will a higher score get me better leverage?
It can help, but experience carries heavy weight. Leverage tiers are tied to documented completed projects, and the top tier is reserved for experienced investors. A strong score does not erase the cap of 75% of after-repair value.
Does a hard money loan help me later with a DSCR refinance?
Only if the file supports the take-out. The refinance has its own score floor and pricing tiers. Lendmire’s piece Credit Score Slipped During the Flip? Qualifying for the Hard Money Exit Refinance Anyway walks through that scenario.
Is a hard money loan consumer-protected like a home mortgage?
Not in the same way. Business-purpose loans fall outside the consumer mortgage rules, but that does not make them unregulated. Tax treatment varies; consult a qualified professional.
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.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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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. Doss Law – Business Purpose Exemption Simplified
2. Lexology – Beware of Business Purpose
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Trust vs Trustee on a Hard Money Loan for a Home Bought During Marriage · Can a Hard Money Loan Pay Off a Land Contract on a Rental? · Is a Full-Gut Rehab Fully Financed on a Hard Money Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- 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.