Hard Money Loans for Short-Term Rentals in Indiana

Frequently Asked Questions

What are hard money loans and how do they work for real estate investors?

Hard money loans are fast, short-term financing options that focus on a property’s value instead of the borrower’s financial background. These loans are often used for time-sensitive investments like fix-and-flips, distressed properties, or short-term rentals. In Indiana, hard money lending allows real estate investors to bypass the slow and rigid approval process of traditional banks. Loans typically come with 6- to 36-month terms, interest-only payments, and quick closings. It’s an ideal solution for investors who prioritize speed and flexibility over long-term financing.

When should an investor consider using a hard money loan instead of a conventional loan?

Hard money loans are perfect when the deal needs to close quickly or when the property doesn't meet conventional loan requirements. In Indiana, investors use them for off-market acquisitions, auction purchases, or flips that require renovation. They're also helpful when borrowing through an LLC or when tax documents aren’t readily available. Since lenders focus on the asset’s value and your plan to repay or refinance, hard money gives you access to funding even when traditional lenders can’t or won’t approve the deal.

What makes hard money different from other types of financing?

The key difference is what the lender evaluates. With hard money, the deal itself—specifically the value of the property and the exit strategy—is the focus. Unlike bank loans that require strong credit, W-2 income, and full documentation, hard money loans offer a faster and more streamlined path to capital. In Indiana, this makes them attractive to full-time investors, flippers, and those acquiring unique or distressed properties. You may pay a higher rate, but you get access to cash on your terms and timeline.

What are the typical loan terms for a hard money loan?

In Indiana, hard money loans typically range from 6 to 36 months and are interest-only. Loan-to-value ratios can reach up to 85% for purchases and 80% for refinances. These loans often include origination fees and may require reserves, depending on the complexity of the deal. Interest rates are higher than bank loans, but investors gain speed and flexibility in return. These terms are especially useful for short-term strategies, including flips, rental conversions, or situations where fast access to capital is critical.

How quickly can a hard money lender close a deal?

Hard money lenders in Indiana can often close deals in as little as 3 to 10 days. This is much faster than the 30 to 45 days required by many conventional lenders. Because the underwriting process centers on the property—not personal income or credit—investors benefit from a simplified, streamlined process. If you’re facing a tight deadline or looking to secure a high-potential property before it hits the market, hard money gives you the speed advantage you need to stay ahead.

Can I get a hard money loan in Indiana with poor credit or no income documentation?

Yes. Hard money lenders in Indiana often approve borrowers with poor credit or limited income documentation. These loans are based on property value and investment potential, not on tax returns or credit scores. Indiana regulates interest rates and lending practices through its state lending laws, so it’s important to choose a licensed lender who complies with these guidelines. Working with a reputable, transparent lender will help ensure you avoid risky loan terms and stay protected throughout the process.

Explore hard money loans and other Airbnb loans in neighboring states like Illinois and Ohio to scale your investments beyond Indiana.