Hard Money Lenders in New York, NY
Find the best hard money lenders in New York, NY. Compare rates, LTV, funding speed, and loan types from lenders who actively fund deals across the five boroughs and the greater NYC metro area.
Hard Money Lending in New York, NY
New York City's hard money lending market is the most complex and competitive in the country, but it also offers some of the highest profit potential for investors who understand the borough-by-borough dynamics. While Manhattan values are prohibitive for most fix-and-flip strategies, the outer boroughs — Brooklyn, Queens, the Bronx, and Staten Island — offer strong ARVs with entry points that still pencil for experienced investors. Brooklyn alone recorded over 1,800 fix-and-flip transactions in 2024, making it one of the most active single-borough flip markets in the United States.
The neighborhoods generating the most investor activity include Bed-Stuy and Crown Heights in Brooklyn (where entry prices remain under $700K but ARVs regularly hit $1.2M+ for fully renovated brownstones), the South Bronx corridors like Mott Haven and Hunts Point (where gentrification is accelerating), East New York and Ozone Park in Queens (affordable entry, strong rental demand), and the North Shore of Staten Island near the ferry. Hard money lenders with NYC experience understand that the city's unique regulatory environment — HPD compliance, Certificates of Occupancy, landmark designations — adds complexity that national lenders often underestimate.
NYC hard money rates are typically 0.5-1% higher than comparable markets due to New York's judicial foreclosure process and longer timelines. However, the sheer size of potential returns compensates: a well-executed Bed-Stuy brownstone flip can net $200,000-$400,000 in profit on a single deal. The key is working with lenders who know the NYC market intimately enough to underwrite accurately in a city where property values can shift by $200 per square foot based on a single block.
Lima One Capital
National private lender headquartered in Greenville, SC. Specializes in fix-and-flip, bridge, and rental portfolio loans for real estate investors across the Southeast and nationwide.
Kiavi
Technology-driven private lender (formerly LendingHome) offering fast pre-approvals and competitive rates for fix-and-flip and bridge loans nationwide.
Five Boroughs Capital Group
NYC-based hard money lender covering all five boroughs and outer metro. Specializes in Bronx and Brooklyn fix-and-flip, Queens multi-family conversions, and Manhattan bridge loans. Deep knowledge of NYC certificate of occupancy requirements and HPD code compliance that affects ARV calculations in every borough.
Empire State Bridge Lending
New York private lender focused on larger bridge and construction transactions in the NYC metro. Experienced with NYCHA-adjacent development, mixed-use ground-up construction in Brooklyn and Queens, and complex entity structures common in New York investment real estate. Strong relationships with title companies for fast closings.
Tri-State Hard Money
Regional hard money lender covering New York, New Jersey, and Connecticut. Funds fix-and-flip and BRRRR deals across the NYC outer boroughs, Long Island, Westchester, and northern New Jersey. Experienced with cooperative apartment financing complexities and New York State foreclosure timelines.
CoreVest Finance
Large-scale private lender focused on portfolio and bridge loans for experienced investors. High loan ceilings for multi-property deals.
RCN Capital
Connecticut-based nationwide private lender specializing in fix-and-flip, bridge, and long-term rental financing for real estate investors.
New York Service Area
How to Choose a Hard Money Lender in New York City
Prioritize NYC-Specific Legal Expertise
New York's investment real estate landscape is governed by a legal framework that is fundamentally different from every other state. Judicial foreclosure, attorney-only closings, HPD compliance, Certificate of Occupancy requirements for renovations, rent stabilization implications, and NYC transfer tax — each of these creates deal-specific complexity that generic lenders consistently underestimate. The most expensive mistake in NYC hard money is borrowing from a lender who quotes aggressively but lacks the NYC experience to close on time. Ask every lender: 'How many deals have you funded in Brooklyn/Queens/Bronx in the last 6 months?' A lender who can't answer specifically has never done it.
Understand the Judicial Foreclosure Premium
New York's 400-900 day foreclosure timeline (versus 45-90 days in non-judicial states) is the single biggest reason NYC hard money rates run 0.5-1% higher than comparable markets. This isn't arbitrary — it reflects genuine risk for lenders whose collateral is tied up for nearly two years in a worst-case default scenario. As a borrower, this means you should be even more careful about deal selection and exit timeline accuracy. If your flip is projected to take 6 months but actually takes 14, your New York lender has far more leverage in a distressed negotiation than a Texas lender would. Over-conservatively underwrite your timeline in New York.
Account for NYC's Unique Transaction Costs
Hard money investors moving to NYC from other markets are consistently shocked by closing costs. The NYC Mansion Tax (1% on sales over $1M, scaling to 3.9% over $25M) directly reduces net proceeds on brownstone flips with $1M+ ARVs. New York State and NYC mortgage recording taxes add 1.8-2.8% of loan amount at origination. NYC transfer tax (1.425% for properties over $500K) is often paid by sellers but affects comp pricing. These costs don't make NYC deals impossible — they make accurate cost modeling essential. Every proforma should include a full transaction cost line item on both the acquisition and the exit.
Plan for HPD and DOB Timeline Risk
New York City's Department of Buildings and Housing Preservation & Development set the pace for renovations, not the contractor. HPD violations on a property can freeze a sale until remediated; DOB stop-work orders can halt a renovation for weeks. Before closing any NYC hard money deal, conduct a thorough HPD violation search and DOB permit history review — your lender should do this but may not catch everything. Budget 2-4 weeks of float for permit approval timelines on projects requiring significant DOB filings. Lenders who have funded dozens of NYC deals will often flag HPD and DOB issues in underwriting that inexperienced lenders miss entirely.
Frequently Asked Questions About Hard Money Loans in New York
Hard money loan rates in New York City typically range from 9.5% to 13.5%, which is 0.5-1% higher than comparable Sun Belt markets due to New York's judicial foreclosure process. Local NYC lenders like Five Boroughs Capital Group charge 9.5-12.5%, while national lenders like Lima One and Kiavi start at 9.5-10%. Origination fees run 1.5-3 points. The higher rate environment is offset by NYC's dramatically higher ARVs — a Bed-Stuy brownstone that ARVs at $1.4M generates far more absolute profit than a $300K flip in other markets even at a higher rate.
NYC closings are slower than most markets due to title complexity, HPD filings, and attorney requirements. Expect 7-14 days with local lenders who know the market, and 14-21 days with national lenders unfamiliar with NYC title procedures. Five Boroughs Capital Group and Tri-State Hard Money can close in 5-7 days for repeat borrowers with clean documentation. New York requires attorneys (not title companies) at closings, which adds to scheduling complexity. Plan 10 days as your working target.
Brooklyn is the highest-volume flip market, particularly Bed-Stuy, Crown Heights, Flatbush, and East Flatbush. Queens offers strong margins in Jamaica, Springfield Gardens, and Ozone Park. The South Bronx (Mott Haven, Port Morris, Hunts Point) has seen the most dramatic appreciation in 2023-2025. Staten Island's North Shore near the ferry offers the most affordable entry points with consistent demand. Manhattan is generally too expensive for fix-and-flip; most NYC investors focus on the outer boroughs.
Several factors make NYC unique: (1) Judicial foreclosure — New York's 400-900 day foreclosure timeline means lenders charge higher rates for the extended risk window. (2) Certificate of Occupancy requirements — any major renovation that changes use or adds units triggers C of O requirements, adding 3-6 months. (3) HPD compliance for rental properties — NYC's housing code is far more complex than other jurisdictions. (4) Attorney closings (not title companies) add cost and scheduling complexity. (5) NYC transfer tax (1-2.625% on buyer) affects exit comps. Work with lenders and attorneys who specialize in NYC investment real estate.
Yes, and Brooklyn brownstones are among the most commonly financed hard money deals in New York. Most NYC hard money lenders will finance 60-80% of the purchase price or 65-70% of ARV. For a brownstone purchased at $750K with a $1.4M ARV after renovation, you'd typically get $450K-$600K in financing. The key is having a detailed renovation scope (many brownstones require gut renovations at $150-250/sq ft) and comp evidence that supports the ARV. Local lenders like Five Boroughs Capital Group specialize in brownstone financing and understand the nuances of Brooklyn's historic districts.
Hard Money Lenders in Nearby Cities
Compare lenders across markets to find the best terms for your deal.
New York Real Estate Market Overview
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New York Hard Money Lending Laws
Usury Laws
New York's civil usury limit is 16% per year for personal loans, but corporate and LLC borrowers are exempt from civil usury laws under NY General Obligations Law § 5-501. The criminal usury threshold (NY Penal Law § 190.40) is 25% per year and applies to all borrowers. Hard money rates in NYC (10.5–15%) stay below this threshold. Most NYC lenders require borrowers to take title in an LLC specifically to utilize the corporate borrower exemption.
Lender Licensing
New York State requires a Mortgage Banker License from the Department of Financial Services (NYDFS) for residential originations. Hard money lenders lending to business entities (LLCs, corporations) on investment properties typically do not require an individual Mortgage Loan Originator (MLO) license for commercial transactions, but many NYC lenders maintain full licensing to handle all deal types including mixed-use and 1-4 family properties.
Foreclosure Process
New York uses judicial foreclosure — among the longest in the nation. NYC foreclosure timelines typically run 18–36+ months (or longer for contested cases) due to mandatory settlement conferences (CPLR § 3408), court backlogs, and substantial borrower rights. Lenders charge a premium of 1–2% above comparable markets to compensate for this timeline risk. NYC lenders carefully underwrite deal structure assuming prolonged foreclosure timelines.
Borrower Protections
New York provides extensive borrower protections: 90-day pre-foreclosure notice required before filing (RPAPL § 1304), mandatory foreclosure settlement conference program, strong cure rights during proceedings, and the right to redeem up to the foreclosure judgment. NYC also enforces Local Law 39 requiring disclosure of hard money loan terms. The state's Homeowner Bill of Rights adds additional notice and mediation requirements.
Top Investment Neighborhoods in New York
Neighborhoods where investors are actively closing deals in 2025–2026.
East Flatbush / Flatbush, Brooklyn
Active flip zone with strong rental demand and reliable buyer demand. Acquisition costs are lower than prime Brooklyn; well-renovated 2-family homes yield strong ARVs.
Jamaica / Springfield Gardens, Queens
Affordable entry near JFK and public transit. Growing ARVs and consistent demand from first-time buyers priced out of other boroughs.
Soundview / Hunts Point, Bronx
Lowest acquisition costs of any NYC investment market with high potential as transit-oriented development expands. High risk-high reward for experienced operators.
Bed-Stuy / Crown Heights, Brooklyn
Premium ARVs with strong buyer demand from young professionals. Entry costs are higher but resale velocity is exceptional. Fully renovated brownstones command top prices.
St. Albans / Hollis, Queens
Stable family neighborhood with consistent flip margins on 1950s–1970s Cape Cods and colonials. Reliable buyer pool and predictable absorption timelines.
Sample Fix-and-Flip: East Flatbush 2-Family, Brooklyn
A 2-family detached in East Flatbush, Brooklyn purchased for $520K from an estate. Full gut renovation of both units: two kitchens ($30K each), three bathrooms total ($35K), new plumbing/electrical ($25K), floors/finishes ($5K). Hard money at 13% interest-only (NYC judicial foreclosure premium), 3 points on $600K. After 9 months, sold at $850K ARV. Interest: ~$58,500. Points: $18,000. NYC attorney/transfer fees: ~$25,000. Selling costs (~5%): $42,500. Estimated net profit: ~$89,000 on ~$150K cash invested. Note: NYC's 1-year flip rule (FHA) may affect first-time buyer financing — target investor or conventional buyer pool.
Illustration only. Actual results vary. Verify all costs with your lender and attorney before closing.