Hard Money Loans in Connecticut
Short-term, asset-based real-estate financing for time-sensitive acquisitions and rehab projects. Expensive but forgiving on borrower qualification.
What Hard money loans are
Short-term (6-18 month) loans underwritten primarily on the property's after-repair value and the borrower's flip/project experience. Interest-only payments during the term; balloon at maturity (paid off by sale or refinance).
Underwriting and qualifying
Lender requires: 600+ FICO typical (some go lower), 10-20% cash to close, proof of reserves equal to 6 months of carry, project plan + scope of work. Funding in 7-14 days standard.
Connecticut-specific considerations
Connecticut-specific underwriting nuances apply — verify with a local lender.
What financing looks like at Connecticut price points
In Hartford at a $199k typical home value, a flip with $30-50k rehab budget would require $159k-$199k in hard-money funding (purchase + rehab). At 11% interest + 2 points over a 6-month hold, financing cost runs $14k-$18k — meaningful but workable for flips projecting $30k+ profit.
Connecticut lender ecosystem
Connecticut has active national-lender presence for hard money financing — all major specialty lenders originate here. Local credit unions and smaller regional banks sometimes offer competitive non-traditional investment-property loans that compete on terms vs the national-DSCR product.
Best fit
Flippers, BRRRR rehab phase, time-sensitive acquisitions where 7-14 day close beats 30-day conventional. Borrowers with credit issues or non-traditional income.
When to use something else
Long-term holds (interest cost eats yield). Borrowers who qualify for cheaper financing should always use it.
Top Connecticut metros for Hard money-financed investing.
Common questions.
What's a typical Hard money rate in Connecticut?
9-13% + 1-4 points is the broad national range. Connecticut-specific pricing reflects the local lender ecosystem and state foreclosure timeline — longer judicial foreclosure timelines extend lender exposure and tend to push pricing toward the upper end of the national range. Always collect 5+ term sheets before committing.
Which Connecticut metros are best for Hard money-financed investing?
Based on our investor score across Connecticut markets we cover: Hartford top the list. Top pick Hartford runs $199k median with 9.61% gross rent yield — strong yield supports DSCR + rental holds.
How does Connecticut's wholesale-assignment law affect Hard money deals?
Verify Connecticut wholesale-assignment law before structuring deals that come from wholesalers.
Financing options in Connecticut.
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