Hard Money Loans in Illinois

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.

Illinois-specific considerations

Illinois-specific underwriting nuances apply — verify with a local lender.

What financing looks like at Illinois price points

In Chicago at a $324k typical home value, a flip with $30-50k rehab budget would require $259k-$324k in hard-money funding (purchase + rehab). At 11% interest + 2 points over a 6-month hold, financing cost runs $23k-$29k — meaningful but workable for flips projecting $30k+ profit.

Illinois lender ecosystem

Illinois 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.