How Much Down Do Hard Money Lenders Need? | Yieldi
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How Much Down Do Hard Money Lenders Need? (2025 Guide for Investors)

Chris Joseph

June 4, 2025 · 5 min read

How much down do hard money lenders need?

Hard money lending has emerged as a powerful financing tool for real estate investors. Whether you're flipping houses, investing in short-term projects, or just getting started in the world of real estate, hard money loans offer speed and flexibility. But one key question lingers for both seasoned and first-time borrowers:

How much down do hard money lenders need?

For 2025, Yieldi, a leading name in private lending, is setting clear and investor-friendly standards. Let’s break down the numbers, the reasons behind them, and how you can use this information to your advantage.

Understanding Hard Money Loans in 2025

A hard money loan is a short-term financing option typically used by real estate investors. These loans are asset-based, meaning they’re secured by the property itself, not your credit score.

Yieldi specializes in 12-month bridge loans—a flexible and fast solution. Even better, there's an option to extend for another 12 months at the end of the initial term.

And here’s the standout feature: Yieldi covers all closing costs with the loan amount—a massive advantage that gives borrowers more room to maneuver.

How Much Down Do Hard Money Lenders Need in 2025?

The industry average varies, but many lenders require anywhere from 20% to 30% down. At Yieldi, the minimum down payment is 25% of the purchase price.

Why 25%? It serves multiple purposes:

  • Protects the lender by ensuring you have real "skin in the game."
  • Keeps you invested in the project’s success.
  • Reduces risk exposure for both parties.

Example Scenario

Let’s say you're purchasing a property for $350,000.

  • Down payment (25%): $87,500
  • Loan amount (75%): $262,500
  • Closing costs: Can be covered by Yieldi’s loan

That means your cash-to-close is limited to your 25% equity—no surprise fees or out-of-pocket costs at closing.

Why Yieldi’s Terms Are Investor-Friendly

Yieldi’s structure caters to modern-day investors:

  • Fast Approval: Time is money in real estate. Yieldi streamlines approvals to help you close quickly.
  • No Closing Cost Burden: All fees are included in your loan—saving thousands upfront.
  • Flexibility: Extend your 12-month term another year if needed, no need to rush a flip or resale.
  • First-Time Friendly: Even new investors get white-glove service. You’re guided through every step of the process.

This combination makes Yieldi an ideal hard money lender in 2025 for both newcomers and experienced developers.

Hard Money Loan Requirements Beyond Down Payment

Yes, the 25% down is essential, but lenders like Yieldi look at the full picture. Here’s what they typically evaluate:

RequirementWhy It Matters
Exit StrategyHow you plan to repay the loan (sale/refi)
Property Value/AppraisalEnsures collateral covers the loan risk
Borrower ExperienceOptional—beginners are welcome at Yieldi
Asset LocationMust be in Yieldi’s approved areas

The best part? Credit scores aren’t the deal-breaker. Yieldi cares more about the asset and strategy than your credit history.

Who Should Consider a Hard Money Loan?

  • Fix-and-flip investors
  • Bridge financing seekers
  • Auction buyers needing fast cash
  • Buy-and-hold investors needing temporary liquidity

If you're tight on time or navigating a complex deal, hard money is often faster than conventional financing.

How to Prepare for a Yieldi Loan Application

To get started with Yieldi, gather the following:

  • Purchase contract
  • Personal ID and entity docs (if applicable)
  • Property photos or inspection
  • Proof of funds for down payment

The process is smooth, and the Yieldi team helps you step-by-step—from underwriting to closing.

Benefits of Choosing Yieldi as Your Hard Money Lender

Here’s a quick summary of what makes Yieldi stand out:

  • Transparent terms
  • 25% down payment standard—no surprises
  • Closing costs included
  • Term flexibility (12 months with an option to extend another 12 months)
  • Friendly for first-time borrowers
  • Fast processing, clear communication

FAQs About Hard Money Down Payments

How much down do hard money lenders need at minimum?
Yieldi requires a minimum of 25% down for their hard money loans.

Do I need perfect credit to qualify with Yieldi?
No. Yieldi evaluates the property and deal strength more than your credit score.

Does the loan include closing costs?
Yes, if needed. Yieldi covers all closing costs within the loan amount—a major benefit for cash-strapped investors.

Can I extend the loan past 12 months?
Yes. You can extend for an additional 12 months upon review and approval.

Can first-time investors get approved with Yieldi?
Absolutely. Yieldi is known for working closely with first-time borrowers, providing support and guidance.

How fast can I close with a hard money loan?
In many cases, Yieldi can close in as little as 7–10 business days.

Final Thoughts: Know Your Numbers, Secure Your Deal

So, how much down do hard money lenders need? If you're working with Yieldi, it’s 25%—clear, consistent, and investor-minded.

In a fast-moving real estate world, having a lender like Yieldi on your side means more than money. It means partnership, clarity, and peace of mind. Whether you're scaling your portfolio or buying your first property, Yieldi’s hard money loans are designed to keep you moving forward—without the friction.

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