Private lending has different rules than conventional mortgages. Here’s what lenders actually look at — and how to position yourself for approval.
What Private Lenders Care About
1. The Deal
Private lenders are asset-based. The property and the deal structure matter more than your personal financial profile. A strong deal with clear profit potential will get funded even if your personal finances aren’t perfect.
2. Credit Score
Most private lenders require a minimum FICO score, but the thresholds are much lower than conventional loans. At Hard Hat Capital, minimums range from 660-700 depending on the program — compared to 720+ for many conventional lenders.
3. Experience
Some programs require prior real estate investment experience. Others — like our DSCR and cosmetic rehab programs — require no experience at all.
4. Down Payment / Equity
Expect to bring 20-25% down on a purchase, or have 25%+ equity for a refinance. Our programs go up to 80% LTV on purchases and 75% on cash-out refinances.
Documents You’ll Need
- Government-issued ID
- Entity documents (LLC/Corp operating agreement)
- Purchase contract or property details
- Rehab budget (for renovation loans)
- Rent roll or lease agreements (for DSCR loans)
What You WON’T Need
- Tax returns
- W-2s or pay stubs
- Employment verification
- Debt-to-income calculations