Hard Money Loans for Short-Term Rentals in Washington

Frequently Asked Questions

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

Hard money loans are short-term, asset-based financing tools that allow investors to purchase or refinance quickly. In Washington, they’re used for everything from vacation rental acquisitions to distressed property rehabs. These loans are approved based on the property and exit strategy—not on the borrower’s income, credit score, or employment status. Terms generally run from 6 to 36 months with interest-only payments. Washington investors rely on hard money when timing and flexibility are critical to closing the deal.

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

Washington investors should consider hard money loans when conventional lending is too slow or inflexible. These loans are perfect for LLC purchases, properties needing renovation, or when the borrower lacks full documentation. If you need to close within days—or if banks won’t approve your deal—hard money gives you a faster, asset-focused path to funding. It’s ideal when the strength of the property and your plan outweigh traditional underwriting metrics.

What makes hard money different from other types of financing?

Hard money loans in Washington stand apart from traditional loans because they’re approved based on the property, not the person. While conventional lenders require credit checks, tax returns, and extended underwriting, hard money lenders offer quick decisions based on deal viability. That means more flexibility, fewer barriers, and faster execution. Though interest rates are higher, the speed and adaptability of hard money often result in better overall returns for real estate investors.

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

In Washington, hard money loans typically range from 6 to 36 months with interest-only payments. Loan-to-value ratios can go up to 85% for purchases and 80% for refinances. These loans often include origination fees and may require reserves, depending on the property and borrower experience. Designed for short-term investments, flips, and transitional rentals, hard money loans are structured for fast approvals and minimal paperwork, giving Washington investors an edge in a highly competitive real estate market.

How quickly can a hard money lender close a deal?

Hard money lenders in Washington can usually close deals in just 3 to 10 business days. That speed is essential in tight markets like Seattle, Spokane, or Bellingham, where opportunities move quickly. Since the loan is based on the property and the investor’s strategy, there’s no need for lengthy credit reviews or income verification. For Washington real estate investors who need to act fast, hard money loans provide the speed and certainty banks can’t match.

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

Yes. In Washington, many investors qualify for hard money loans with poor credit or limited income verification. These asset-based loans are evaluated on the property and your exit plan—not your personal financials. While Washington regulates lending practices and enforces usury laws, business-purpose loans are often exempt from strict consumer protections. To ensure compliance, work with a transparent, licensed lender who adheres to all applicable state requirements and provides clear, upfront terms.

Explore hard money loans and other STR loans in neighboring states like Oregon and Idaho to scale your strategy beyond Washington.