There is no single private lending rate that applies across hard money, bridge, DSCR, and construction loans. A rate quote reflects the property, loan size, leverage, borrower, term, and lender. Published ranges cannot replace a current written offer for your deal.
Compare total borrowing cost and cash needed at closing alongside the interest rate. This guide shows what to request from each lender in 2026.
Compare the complete offer
- Interest: Ask whether it is charged on the full commitment or only the drawn balance, and when payments begin.
- Origination points: One point equals one percent of the stated loan amount. Confirm which amount the fee uses and whether it is paid at closing.
- Other fees: Request an itemized list of underwriting, legal, appraisal, inspection, servicing, extension, and exit charges.
- Cash required: Ask for a closing statement showing the down payment, reserves, fees, and net proceeds.
- Exit terms: Compare maturity, extension conditions, prepayment provisions, and the payoff amount at your planned exit date.
A lower advertised rate can cost more if the loan has higher fees or a term that does not fit your project. Ask each lender to calculate the same closing and payoff scenarios so the offers are comparable.
Hard money and fix-and-flip loans
Ask how the lender calculates after-repair value, which renovation costs it finances, and when construction draws are released. Compare the total cost under your expected renovation schedule and a delayed-sale scenario.
Bridge loans
A bridge loan should give your purchase or refinance plan enough time to complete. Compare the maturity date, extension conditions, reserve requirements, and any fees due if your permanent financing takes longer than expected.
DSCR rental loans
A debt-service-coverage-ratio loan considers the rental property cash flow. Ask how the lender measures income and expenses, what occupancy or lease evidence it requires, and whether the rate or fees change with leverage or prepayment terms.
Construction loans
Construction financing adds questions about inspections, draws, interest reserves, and schedule changes. Confirm when interest begins, which costs are eligible, and how a delayed project affects the maturity date and fees.
Why offers differ
Lenders may weigh collateral value, requested leverage, property type, borrower experience, location, and exit plan differently. Ask each lender which assumptions drive its quote. A precise explanation is more useful than an unsourced market average.
How to benchmark your terms
Request written offers from lenders that actually handle your asset class and market. Compare them using the same loan amount, closing date, draw schedule, and expected payoff date. Check recent closing references and review the proposed documents before paying nonrefundable fees.
Use the LendLedger directoryto identify lenders to contact, then confirm each lender's current terms directly. Rates and product availability can change.
Frequently asked questions
How do I find current private lending rates for my deal?
Request dated written quotes for the same property, loan amount, term, and exit plan from lenders active in your market. Compare interest, points, fees, cash required at closing, and payoff under the same scenario.
How do private lending rates compare to conventional mortgage rates?
Products and underwriting differ, so a generic rate comparison can mislead. Compare offers available for the same property and borrower, including fees and timing, rather than assuming one financing type is always cheaper or faster.
What factors affect private lending interest rates?
Lenders may consider property value, leverage, loan purpose, borrower experience, location, term, and exit plan. Ask which assumptions drive each written quote.
What is a typical origination fee for a private loan in 2026?
A point equals one percent of the stated loan amount. Ask for the dollar amount and an itemized list of every fee in the written offer, including any extension or exit charges.
How do DSCR loan rates compare to hard money rates?
DSCR loans and short-term rehab loans serve different property and exit plans. Get actual quotes for eligible products and compare their total costs over the expected holding period.
Do private lending rates vary significantly by state?
Offers can differ by property and jurisdiction. Confirm that the lender serves the state where your property is located and ask which local factors affect its quote.