FAQ — Ironclad Capital Hard Money Lending

Question 1

What is a hard money loan?

Accepted Answer

A hard money loan is a short-term, asset-backed loan secured by the value of collateral — typically real estate or other tangible assets — rather than the borrower's creditworthiness or income. The term "hard money" refers to the hard assets used as security. These loans are issued by private lenders like Ironclad Capital, not banks or credit unions, which allows for significantly faster approvals and more flexible underwriting criteria.

Question 2

How is a hard money loan different from a bank loan?

Accepted Answer

Traditional bank loans evaluate your income, employment history, debt-to-income ratio, and credit score. Hard money loans evaluate the value of your collateral. This means borrowers who are self-employed, have irregular income, or carry a complex financial profile can still qualify — provided they hold sufficient asset value. Bank loans typically take 30–90 days to close; hard money loans can close in as few as 3–14 business days.

Question 3

What types of assets can be used as collateral?

Accepted Answer

Ironclad Capital accepts a broad range of collateral including: residential and commercial real estate (primary residences, investment properties, land), luxury vehicles (cars, boats, aircraft), fine art, jewelry, and watches, and diversified investment or brokerage accounts. If you're unsure whether your asset qualifies, contact us for a no-obligation consultation.

Question 4

Who typically uses hard money loans?

Accepted Answer

Hard money loans are used by a wide range of borrowers: real estate investors who need to close quickly on a property, business owners who need liquidity without selling assets, individuals with strong asset holdings but unconventional income profiles, borrowers who have been declined by traditional lenders, and those who need bridge financing between transactions. The common thread is a need for speed, flexibility, or asset-based qualification.

Question 5

Are hard money loans legal?

Accepted Answer

Yes. Hard money lending is a fully legal and regulated form of private lending. Ironclad Capital is licensed in all 50 states and operates in compliance with applicable federal and state lending regulations, including RESPA, TILA, and state-specific mortgage and consumer lending laws. All loans are documented with formal agreements and recorded liens.

Question 6

Do I need good credit to qualify?

Accepted Answer

No. Ironclad Capital does not require a minimum credit score and does not perform a hard credit pull during the initial inquiry. Our underwriting is asset-driven: if your collateral holds sufficient value relative to the loan amount you're requesting, you may qualify regardless of your credit history. That said, we do review the overall picture of your financial situation as part of our due diligence.

Question 7

Do I need to provide proof of income?

Accepted Answer

No income verification is required for most of our loan programs. Because our loans are secured by the value of your assets, your income and employment status are not primary qualification factors. We may ask for a brief overview of your repayment or exit strategy — for example, a planned property sale, refinance, or business event — but we do not require tax returns, pay stubs, or W-2s.

Question 8

What is the minimum and maximum loan amount?

Accepted Answer

Our loan programs range from $25,000 to $10,000,000 or more depending on the asset type and program. Real estate equity loans and bridge loans typically start at $100,000. Asset-secured personal loans start at $25,000. Investment portfolio loans are available from $250,000. For loans above $5,000,000, please contact us directly to discuss terms.

Question 9

How do you determine how much I can borrow?

Accepted Answer

Loan amounts are determined by the Loan-to-Value (LTV) ratio — the loan amount as a percentage of the appraised value of your collateral. For example, if your property is appraised at $1,000,000 and we offer a 65% LTV, you could borrow up to $650,000. LTV ratios vary by asset type and program: real estate equity loans go up to 70% LTV, bridge loans up to 75%, and personal asset loans up to 60%.

Question 10

Can I apply if I have a previous bankruptcy or foreclosure?

Accepted Answer

Yes. Prior bankruptcies, foreclosures, or other credit events do not automatically disqualify you. We evaluate each application on its own merits, with primary focus on the current value of your collateral and your ability to service the loan. Borrowers with prior credit events are encouraged to apply and discuss their situation with a loan officer.

Question 11

How long does the application process take?

Accepted Answer

The initial inquiry form takes under 10 minutes to complete. A loan officer will contact you within 2 business hours. Asset valuation typically takes 1–2 business days. A formal written offer is issued within 24–48 hours of valuation. From initial inquiry to funded loan, most transactions close within 7–14 business days. Bridge loans and personal asset loans can close in as few as 3 business days.

Question 12

What interest rates do you charge?

Accepted Answer

Interest rates vary by loan program, collateral type, LTV ratio, and loan term. Our rates are competitive within the private lending market and reflect the speed, flexibility, and asset-based nature of our programs. Rates are disclosed in full in your written loan offer before you commit. We do not engage in bait-and-switch pricing — the rate in your offer is the rate at closing.

Question 13

What fees are associated with a hard money loan?

Accepted Answer

Common fees include origination points (typically 1–3% of the loan amount), appraisal or valuation fees, title and escrow fees (for real estate loans), and document preparation fees. All fees are disclosed upfront in your written loan offer. There are no hidden fees or surprise charges at closing. Your loan officer will walk you through the full cost structure before you proceed.

Question 14

What are the loan terms?

Accepted Answer

Loan terms vary by program. Real estate equity loans: 12–60 months. Bridge loans: 6–24 months. Asset-secured personal loans: 6–36 months. Investment portfolio loans: 12–48 months. Most of our loans are structured as interest-only with a balloon payment at maturity, though fully amortizing options are available for certain programs. Your loan officer will present the structure that best fits your situation.

Question 15

Is there a prepayment penalty?

Accepted Answer

Prepayment terms vary by program and loan structure. Many of our programs offer no prepayment penalty after a defined hold period (typically 3–6 months). Some programs include a step-down prepayment schedule. Your specific prepayment terms will be clearly stated in your written loan offer. We encourage borrowers to ask their loan officer about prepayment flexibility before signing.

Question 16

Are payments monthly? How is interest calculated?

Accepted Answer

Most loans are structured with monthly interest-only payments, with the principal repaid at the end of the loan term (balloon payment). Interest is calculated on the outstanding principal balance. For fully amortizing loans, monthly payments include both principal and interest. Your loan offer will include a full payment schedule so you know exactly what to expect each month.

Question 17

What happens at the end of the loan term?

Accepted Answer

At maturity, the outstanding principal balance (and any accrued interest) is due in full. Most borrowers repay through a property sale, refinance into a conventional mortgage, or a business liquidity event. We encourage all borrowers to have a clear exit strategy before closing. If your situation changes before maturity, contact us early — we prefer to work with borrowers proactively rather than reactively.

Question 18

Can I extend my loan if I need more time?

Accepted Answer

Loan extensions are evaluated on a case-by-case basis. If you anticipate needing additional time before maturity, contact your loan officer as early as possible. Extensions are not guaranteed but are considered when the borrower is in good standing and there is a credible path to repayment. Extension fees and revised terms will be presented in writing before any extension is executed.

Question 19

What happens if I default on the loan?

Accepted Answer

As with any secured loan, failure to repay may result in the lender exercising its rights against the collateral — including foreclosure on real estate or repossession of other secured assets. We take default seriously and encourage borrowers to communicate with us early if they anticipate difficulty. We are not in the business of acquiring collateral; we are in the business of lending. Early communication gives us the best opportunity to find a solution.

Question 20

Do you report to credit bureaus?

Accepted Answer

Ironclad Capital does not routinely report loan performance to consumer credit bureaus. However, in the event of a default and legal action, a judgment may appear on your credit report. This policy may vary by loan program and state. Your loan officer can clarify the reporting practices applicable to your specific loan.

Question 21

What makes Ironclad Capital different from other hard money lenders?

Accepted Answer

Several things distinguish us: 25+ years of operating history and $500M+ in funded loans. Nationwide licensing in all 50 states — most private lenders operate in only a handful of states. A dedicated loan officer assigned to every file — not a call center. Transparent pricing with no bait-and-switch terms. A privately held structure that allows us to make decisions based on merit, not quarterly targets. And a genuine commitment to borrower outcomes, not just transaction volume.

Question 22

Is Ironclad Capital a direct lender or a broker?

Accepted Answer

Ironclad Capital is a direct private lender. We fund loans from our own capital — we do not broker your application to third parties or sell your information to other lenders. This means faster decisions, consistent terms, and a single point of accountability from inquiry to funding.

Question 23

Are you licensed in my state?

Accepted Answer

Yes. Ironclad Capital is licensed to lend in all 50 states. We maintain active lending licenses and comply with the specific regulatory requirements of each state in which we operate. NMLS #XXXXXXX. If you have questions about our licensing in your specific state, your loan officer can provide the applicable license information.

Question 24

How do I know my information is kept confidential?

Accepted Answer

Ironclad Capital treats all borrower information with strict confidentiality. We do not sell, share, or disclose your personal or financial information to third parties except as required to process your loan (appraisers, title companies, legal counsel) or as required by law. Our privacy practices are detailed in our Privacy Policy, available on request.

Question 25

Can I speak with a loan officer before submitting an inquiry?

Accepted Answer

Absolutely. You are welcome to call or email us before submitting any form. Our loan officers are available Monday through Friday, 8am to 7pm ET, and are happy to discuss your situation, answer questions, and help you determine whether our programs are a good fit — with no obligation and no pressure.

Frequently Asked Questions

Hard Money Lending Basics

Application & Qualification

Rates, Fees & Terms

Repayment & Default

Why Ironclad Capital

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