Hard Money Loans for Short-Term Rentals in Iowa
Hard Money Loans
From Des Moines to Cedar Rapids, Iowa offers strong potential for real estate investors focused on short-term rentals and property flips. At BNB Lending, we offer hard money loans in Iowa that prioritize the value of your investment over traditional borrower requirements. That means no income documentation, no credit hurdles, and no waiting on banks. Our loans are designed for speed, helping Iowa investors close fast on profitable opportunities. Whether you’re buying, renovating, or refinancing, we make funding fast and flexible.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states! Find out more and get your application started today!
Frequently Asked Questions
What are hard money loans and how do they work for real estate investors?
Hard money loans are short-term loans backed by real estate and used primarily by investors who need fast access to funding. Instead of basing approval on credit or income, these loans focus on the property’s value and potential. In Iowa, investors use hard money to acquire, improve, or refinance properties that traditional banks might reject. Terms usually include 6 to 36 months, interest-only payments, and closings within days. These loans are a practical tool for investors looking to move quickly and secure deals others can’t.
When should an investor consider using a hard money loan instead of a conventional loan?
Hard money loans are useful when speed is essential or when the project doesn’t qualify for conventional financing. Iowa investors frequently rely on hard money for properties in need of renovation, auction purchases, or transactions through LLCs. If you're short on time or income documentation, hard money provides the flexibility you need. Since these loans are based on the deal itself, not the borrower’s background, they’re ideal for active investors who want to move quickly and avoid delays caused by traditional underwriting.
What makes hard money different from other types of financing?
Hard money financing is based on the value and viability of the investment—not the borrower’s personal finances. Traditional lenders require detailed income, tax, and credit documentation, which can slow down the process. Hard money loans eliminate those steps by focusing on the property and the plan for repayment. In Iowa, this enables investors to buy, renovate, or refinance quickly. While the interest rates are higher, the ability to close fast and with fewer obstacles makes hard money an indispensable option for real estate professionals.
What are the typical loan terms for a hard money loan?
Iowa hard money loans typically offer 6 to 36-month terms with interest-only payments. Lenders may approve up to 85% LTV on purchases and 80% on refinances. These loans usually come with higher rates than bank financing but offer far greater flexibility. Origination fees, reserves, and documentation requirements vary depending on the lender and property type. The structure of these loans supports short-term investment strategies—such as flips or bridge loans—and allows for fast execution, often within a week of approval.
How quickly can a hard money lender close a deal?
Hard money lenders in Iowa can typically close deals in 3 to 10 business days. That timeline is far quicker than conventional financing, which can take 30 to 45 days or more. Because hard money is based on the property’s value and not your credit report or pay stubs, the approval process is streamlined. For Iowa investors operating in competitive or distressed markets, this speed is critical. It allows you to move quickly on deals and secure properties before others even reach underwriting.
Can I get a hard money loan in Iowa with poor credit or no income documentation?
Yes. In Iowa, investors can qualify for hard money loans even with poor credit or limited income documentation. Since these loans are asset-based, approval is driven by the property’s value and your strategy for repayment. Iowa does regulate lending practices under state law, including interest rate caps and business-purpose loan guidelines. It’s important to work with a lender who understands and complies with Iowa’s lending rules. Transparent terms and proper licensing protect you and ensure your project stays on track.
