Exit Your Bridge Loan.
Lock in a Rate That Lasts.
Hard money and bridge loans served their purpose. Now your property is stabilized, leased, or renovated. It's time to refinance into a long-term loan at a fraction of the cost.
What Is a Hard Money Takeout Refinance?
A takeout refinance replaces your short-term, high-cost hard money or bridge loan with a permanent, lower-rate commercial mortgage.
Hard money loans are designed to be temporary — typically 6 to 24 months at 10–14% interest with 2–4 points. They're essential for acquisitions, renovations, and time-sensitive deals. But once the property is stabilized, continuing to pay hard money rates destroys your returns.
A takeout refinance moves you into a conventional bank loan, SBA loan, or DSCR loan — cutting your rate by 40–60% and extending your term from months to decades.
6 Signs It's Time to Take Out Your Hard Money Loan
The best takeout timing is 3–6 months before your hard money loan matures. Start early — conventional underwriting takes time.
Property Is Stabilized
Renovation complete, tenants in place, or business operating. The property generates reliable income or has clear market value.
Maturity Is Approaching
Your hard money loan matures in 3–12 months. Waiting until the last month creates extension fees and lender pressure.
DSCR Is 1.20x+
Your property's Net Operating Income covers at least 1.20x of the projected annual debt service on the new loan.
Occupancy Is 80%+
For investment properties, lenders want to see stabilized occupancy. For owner-occupied, your business must be operating in the space.
Financials Are Clean
You have 2 years of tax returns, current P&L, and bank statements ready. Clean books speed up underwriting dramatically.
Extension Costs Are Rising
Your hard money lender charges 1–2 points per extension. At $1.5M, that's $15K–$30K every time you extend — money better spent on closing a takeout.
Hard Money vs. Takeout Loan Options
Your current hard money loan compared to the three most common takeout routes.
What Lenders Look For
Requirements vary by loan type, but these are the baseline thresholds for most takeout lenders.
How a Takeout Refinance Works
Assess Your Timeline
Check your hard money loan's maturity date and extension terms. Ideal to start 3–6 months before maturity. Know your current balance, rate, and any prepayment requirements.
Submit to BestLoanUSA
Share your property address, current loan details, renovation status, and financial profile. No hard credit pull at this stage.
Advisor Review
Our advisor evaluates whether a conventional bank loan, SBA, or DSCR product is the best takeout route. Structure depends on property type, occupancy, and your financial profile.
Lender Matching
We submit to matched lenders who specialize in post-rehab and bridge takeout financing. You receive competing term sheets to compare rates, fees, and prepayment terms.
Appraisal & Underwriting
The lender orders an appraisal at current (post-renovation) value. You provide tax returns, rent roll or business P&L, bank statements, and the existing loan payoff statement.
Close & Pay Off Hard Money
New lender pays off your hard money loan at close. You transition to a permanent, lower-rate structure. Timeline: 30–60 days for conventional, 60–90 for SBA.
Ready to Exit Your Hard Money Loan?
No credit pull. No commitment. See what takeout options are available for your property today.
Frequently Asked Questions
A takeout refinance replaces your short-term hard money or bridge loan with a permanent commercial mortgage at a lower rate and longer term. It's the planned exit strategy for most bridge loan borrowers once their property is stabilized.
Most conventional lenders require 6–12 months of property ownership (seasoning). However, some DSCR lenders and portfolio banks offer day-one refinancing for post-renovation properties at current appraised value. Timing depends on whether the property is stabilized and income-producing.
Takeout rates typically range from 5.5% to 8.5% depending on loan type, LTV, property type, and borrower strength. This compares to 10–14% for hard money. On a $1.5M loan, that difference saves $5,000–$10,000 per month in interest alone.
Yes. Many lenders use the as-stabilized or post-renovation appraisal value for underwriting, not your original purchase price. This is especially common with DSCR loans and portfolio lenders. The key is that the renovation must be substantially complete and the property must be generating income or ready for occupancy.
Most hard money lenders offer extensions for 1–2 points. However, extensions are expensive — on a $1.5M loan, each extension costs $15,000–$30,000. If your property isn't fully stabilized, a bridge-to-bridge refinance with a lower-cost bridge lender may be a better interim step while you prepare for a permanent takeout.
The three most common takeout routes are: conventional bank loans (lowest rates, most documentation), DSCR loans (no personal income verification, based on property cash flow), and SBA loans (for owner-occupied properties, lowest down payment). Your advisor will recommend the best fit based on your property and financial profile.