Hard Money Loans for Short-Term Rentals in Ohio

Frequently Asked Questions

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

Hard money loans are asset-based financing options that prioritize real estate value over personal financial details. In Ohio, investors use them to acquire, renovate, or refinance properties when time or documentation limits access to traditional funding. Terms typically range from 6 to 36 months with interest-only payments. Because lenders evaluate the property and the investment plan—not credit reports or tax returns—hard money loans close fast. This makes them a practical option for time-sensitive deals or unconventional property types.

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

Ohio investors should consider hard money loans when they’re facing a tight timeline, purchasing through an LLC, or working on a project that doesn’t meet bank standards. They’re especially useful for flips, auction properties, and rehabs that wouldn’t pass traditional underwriting. If you’re self-employed, don’t have recent tax returns, or want to move fast, hard money provides access to capital when you need it most. These loans rely on asset value and exit strategy—not your personal financials.

What makes hard money different from other types of financing?

Hard money loans are different because they’re built for speed and deal structure—not borrower profiles. Traditional lenders in Ohio require detailed income verification, credit checks, and long underwriting periods. Hard money focuses on the property and your investment plan, often closing in a fraction of the time. While the interest rates are higher, the ability to act quickly gives you a competitive advantage. It’s financing designed for action, helping you close deals that others can’t move on fast enough.

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

In Ohio, hard money loan terms generally range from 6 to 36 months with interest-only payment structures. Purchase LTVs can reach up to 85%, and refinances up to 80%. Loans usually come with origination fees and may include reserves depending on the deal type. Higher interest rates reflect the loan’s speed, flexibility, and minimal documentation requirements. These terms are perfect for flips, short-term rentals, or quick turnarounds—where every day saved on closing translates into stronger returns.

How quickly can a hard money lender close a deal?

Hard money lenders in Ohio can typically close deals in 3 to 10 business days. This is crucial for investors bidding at auction, working with motivated sellers, or trying to secure time-sensitive properties. Because approval is based on the asset, not personal income or credit score, the process is streamlined. For real estate professionals who value timing, hard money delivers speed, simplicity, and certainty—allowing you to move forward while others are still waiting for bank approvals.

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

Yes. Investors in Ohio can often qualify for hard money loans with low credit scores or no documented income. These loans are underwritten based on the value of the real estate and your exit strategy. While Ohio regulates interest rates and lender activity, most business-purpose loans are exempt from consumer-level restrictions. It’s important to work with a transparent lender who complies with state regulations and provides clear loan terms to protect your investment and ensure a smooth transaction.

Explore hard money loans and other STR loans in neighboring states like Indiana and Pennsylvania to pursue more investments beyond Ohio.