Hard Money Loans in Alabama

Alabama hard money loans designed for fix-and-flip projects and new construction. Fund your property purchases, cover rehab costs, and build from the ground up—perfect for both new and experienced investors looking to maximize returns.

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Why Choose Us for Hard Money Loans in Alabama

We provide fast, reliable, and flexible hard money loan solutions tailored for real estate investors in Alabama. Whether you’re funding a fix-and-flip, renovation, or new construction project, our team ensures quick approvals, competitive rates, and personalized terms.

Competitive Terms

We offer competitive terms on investment property loans in Alabama. Fix-and-flip loan rates typically range from 10.5% to 11.25% with origination fees between 1.5% and 2.99%. DSCR loans are available at rates from 6.5% to 7.99% with a 1.0% origination fee.

Simple Online Application

Real estate investors can apply online, receive pre-approval, or book a quick call in just a couple of minutes. Getting started is fast and hassle-free.

Quick Turnaround

Our team is ready to assist you. Submit a Quick Application or Pre-Approval, and we’ll respond within 1 business hour. Funding for your project can be completed in as little as 7 days.

Reliable Financing

Integrity and honesty are at the core of our work. When we approve a loan, you can count on closing on time.

Alabama Hard Money Loan Product

Alabama Fix-and-Flip Loans

Loans for Property Purchase & Renovation

Loan Amount: $50,000 – $3,000,000
Interest Rate: 10.5% – 11.25%
Origination Fee Starting at 1.5%
Finance Up to 90% of Purchase Price & 100% of Rehab Costs
Beginner-Friendly Fix & Flip Loans

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Alabama DSCR Loans

30-Year Financing for Rental Properties

Maximum Loan: $2,000,000
Interest Rate: 6.25% – 7.99%
Origination Fee Starting at 0%
Up to 80% Loan-to-Value
Suitable for Short-Term & Long-Term Rentals

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Ground-Up Construction

For New Builds & Completion Projects

Loan Amount: Up to $3,000,000
Interest Rate: 10.99% – 12.25%
Origination Fee Starting at 2.0%
Finance Up to 75% of Purchase & 100% of Construction Costs
Up to 90% of Loan-to-Cost

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State
Birmingham, Al

Loan Type
Fix and Flip

Loan Amount
$89,500

Loan Amount (if applicable)
80% of Purchase + 100% Of Rehab

Rate
11.00%

Points
2.55%

Alabama Deal Summary

This 4-bedroom, 3-bathroom home in Mansfield presented a strong BRRRR investment opportunity. Purchased for $185,000, the investor allocated $80,000 for renovations to modernize the property and boost its rental appeal. With an after-repair value (ARV) of $350,000 and high local rental demand, the project offered a promising route to profitability. Financing was provided to support the investor’s growing experience.

Key Highlights:

Strong LTV: Financing covered 82.5% of the $185,000 purchase price and 100% of the $80,000 renovation costs.
Proven Borrower: The investor had successfully completed one prior project, demonstrating their capability to execute a BRRRR strategy.
Refinance-Ready ARV: With an estimated ARV of $350,000 and potential rental income of $2,400 per month, the property was well-positioned for a cash-out refinance.

Frequently Asked Questions

How Do You Qualify for a Hard Money Loan in Birmingham?

To be eligible for a hard money loan in Birmingham, borrowers typically need to meet the following requirements:

A minimum credit score of 640 or higher

A strong investment opportunity with at least a 10% return on investment (ROI)

An active LLC or corporation registered in the state of Pennsylvania

Which property types are eligible for hard money financing in Birmingham?

Hard money financing in Birmingham can be used for several types of real estate investments, such as:

Single-family and small residential properties (1–4 units)

Medium-sized multifamily properties (5–25 units)

Certain commercial real estate projects

What interest rates and loan terms are available for hard money loans in Birmingham?

Interest rates for hard money loans in Birmingham typically vary based on the borrower’s experience and credit profile. Rates generally range between 10.5% and 11.5%. For fix-and-flip projects, the average rate is around 10.75%, offered as an interest-only loan with no prepayment penalty.

How is the loan-to-value (LTV) calculated for hard money loans in Birmingham?

The loan amount is determined using several factors related to the project and investor profile. In general, first-time investors may qualify for financing of up to 80% of the purchase price plus 100% of the renovation costs. More experienced investors can access higher leverage, with financing of up to 90% of the purchase price along with 100% of the rehab budget.

Can a hard money loan be used for rental properties in Birmingham?

Yes, a hard money loan can be used to acquire and renovate a rental property in Birmingham. Once the property is stabilized, it can be refinanced into a DSCR loan. If the property is already rent-ready at the time of purchase, hard money financing may not be necessary, and you can move directly into DSCR financing.

Best Cities To Invest In Real Estate In Birmingham

Mobile, Al

Mobile’s fix-and-flip market provides affordable entry points with strong potential for returns, especially in stable, high-demand neighborhoods. Areas such as Midtown, West Mobile, and Spring Hill are popular among families and young professionals, making them attractive for investors. Many properties in the city are older and benefit from updates that enhance both functionality and appearance. Renovations that modernize kitchens and bathrooms, improve curb appeal, or address common issues like outdated HVAC systems and roofing often yield the highest ROI. While the market in Mobile moves more gradually than in larger cities, well-planned upgrades in sought-after neighborhoods can generate significant buyer interest and profitable outcomes.

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Birmingham, AL

Birmingham presents strong opportunities for fix-and-flip investors, though careful neighborhood selection is crucial due to varying crime rates. Safer, high-demand areas such as Homewood, Vestavia Hills, and Mountain Brook typically offer more stable property values and better resale potential. The city’s older housing stock provides value-add opportunities, especially in homes needing cosmetic updates or layout improvements. Renovations like modern kitchens, open floor plans, and enhanced curb appeal can significantly increase returns. For investors pursuing the BRRRR strategy, Birmingham’s affordable entry points and solid rental demand create attractive opportunities, but thorough research is essential to avoid higher-risk areas with weaker buyer or tenant interest.