Best Hard Money Lenders in New York
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New York's hard money market is dominated by New York City, with some of the highest loan volumes — and highest costs — in the country. NY's judicial foreclosure process (often 18-36 months) is a major factor in lender pricing. Despite this, NYC's property values and investor demand sustain an active private lending ecosystem, particularly in Brooklyn, Queens, and the Bronx.
Hard Money Lenders by City in New York
Click any city to see curated lenders active in that market.
New York Hard Money Lending Laws
Key regulatory factors that affect hard money lending in New York — from usury limits to foreclosure timelines.
Usury Laws
New York Banking Law § 14-a caps civil usury at 16% per year for individual borrowers and small business loans. Criminal usury applies above 25% (Penal Law § 190.40). Critically, NY General Obligations Law § 5-521 exempts corporations (including LLCs in most interpretations) from civil usury — a key reason hard money loans are structured to corporate entities in New York.
Lender Licensing
The New York Department of Financial Services (NYDFS) requires a Mortgage Banker or Mortgage Broker license for residential mortgage originations. Commercial lenders making loans to corporate entities on non-owner-occupied investment properties may qualify for exemptions. NYC's complex regulatory environment means most active hard money lenders maintain full licensing.
Foreclosure Process
New York is a strict judicial foreclosure state with one of the slowest timelines in the US — typically 18–36 months in New York City, and 12–24 months upstate. Borrowers must be served, a complaint filed, judgment entered, referee's report completed, and then the property sold at auction. This extended timeline is the primary driver of NY's higher hard money rates.
Borrower Protections
NY RPAPL § 1304 requires a 90-day pre-foreclosure notice for 1–4 unit residential properties. NY's lengthy judicial process provides substantial de facto protections. Deficiency judgments are available but uncommon in NYC where property values are high. The NY Foreclosure Prevention Act and various court settlement conferences further extend timelines.
Frequently Asked Questions — Hard Money Lending in New York
New York's judicial foreclosure process takes 18–36 months in NYC — the longest timeline of any major US market. Lenders must price in the cost of capital being tied up in a non-performing loan for potentially 2–3 years. This foreclosure risk premium pushes NY hard money rates to 10–15%, significantly above the national average. NYC's high property values partially offset this with strong collateral coverage.
New York hard money rates range from 10% to 15%, with NYC commanding the highest rates. Bridge loans for Manhattan and Brooklyn properties often start at 10–12% for experienced investors with strong equity. Points are typically 2–3. Loan-to-value is more conservative (60–70%) given foreclosure risk. Short-term bridge financing (6–18 months) is the most common product type.
New York's civil usury law (16% cap) doesn't apply to corporations, which courts have generally extended to LLCs through the definition in GOL § 5-521. By structuring loans to LLC borrowers, hard money lenders avoid the usury cap and can charge market rates. This is why virtually all NY hard money lenders require borrowers to take title through a corporate entity — it's both a regulatory necessity and standard practice.
Yes. Buffalo, Rochester, Syracuse, and Albany have growing hard money lending ecosystems. Upstate NY offers dramatically lower acquisition costs ($80K–$200K vs. $1M+ in NYC) with faster foreclosure timelines (12–18 months vs. 18–36 in NYC). Some national lenders like Lima One Capital and Kiavi serve upstate markets, and local private lenders are active particularly in Buffalo's revitalizing neighborhoods.
Brooklyn (Bushwick, East New York, Bed-Stuy) and the Bronx see the most fix-and-flip volume relative to acquisition cost. Manhattan has high ARVs but extremely high entry costs compress margins. Queens (Jamaica, Southeast Queens) offers mid-range opportunities. Staten Island has a growing flip market. Hard money lenders who know specific NYC micro-markets can underwrite faster than national lenders using automated valuation models.