Best Hard Money Lenders in Rhode Island
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Rhode Island's hard money market is anchored by Providence, with non-judicial power-of-sale foreclosure (~3–4 months) — one of the cleanest foreclosure frameworks in New England — supporting competitive lender pricing. The 3-decker inventory found in Federal Hill, Mount Hope, and Smith Hill is Rhode Island's main fix-and-flip product. Rates typically run 10–12.5%.
Hard Money Lenders by City in Rhode Island
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Rhode Island Hard Money Lending Laws
Key regulatory factors that affect hard money lending in Rhode Island — from usury limits to foreclosure timelines.
Usury Laws
Rhode Island has no general usury statute capping interest on loans to business entities for commercial/investment purposes. R.I. Gen. Laws § 6-12-3 caps rates only for certain prescribed high-cost consumer loans, and § 6-12-1 et seq. exempts commercial loans to business entities. Hard money loans to Rhode Island investor LLCs are uncapped — rates of 10–12.5% are typical for Providence and Providence County acquisition financing.
Lender Licensing
The Rhode Island Department of Business Regulation (DBR) administers mortgage lender and mortgage broker licensing under R.I. Gen. Laws § 19-14-1 et seq. Hard money lenders making residential mortgage loans in Rhode Island need a license from the DBR. Commercial hard money lenders making loans to investor entities on non-owner-occupied investment property may qualify for Rhode Island's commercial lending exempt status but should verify current DBR requirements.
Foreclosure Process
Rhode Island uses non-judicial power-of-sale foreclosure via the mortgagee's power of sale under R.I. Gen. Laws § 34-23-1 et seq. The typical uncontested timeline runs 3–4 months — one of the fastest non-judicial foreclosure timelines in the country. Rhode Island provides no post-sale statutory right of redemption — a meaningful lender advantage. Deficiency judgments are permitted and follow Rhode Island's fair-value framework.
Borrower Protections
Rhode Island's non-judicial power-of-sale foreclosure (R.I. Gen. Laws § 34-23-1) with no post-sale redemption right is one of the cleanest US foreclosure frameworks, on par with Texas and behind only a few western states. Providence-area hard money lenders benefit from the 3–4 month lender-friendly timeline and absence of post-sale redemption. Mortgage Mediation Program requirements under R.I. Gen. Laws § 34-50 do not typically apply to investment property held through an LLC.
Frequently Asked Questions — Hard Money Lending in Rhode Island
Providence hard money rates typically range from 10% to 12.5%. Providence County rates run 10–11.5% for experienced borrowers and 11.5–12.5% for first-time investors. Origination fees range 2–2.5 points. Rhode Island's 3–4 month non-judicial power-of-sale foreclosure and no post-sale redemption right support rates well below the New England average. Lenders active in Providence typically also lend into Massachusetts and Connecticut.
Top Providence neighborhoods for fix-and-flip in 2026: Federal Hill (older 3-deker inventory; $290K–$440K entry, $400K–$580K ARVs), Mount Hope (revitalizing, walkable to College Hill; $270K–$410K entry, $370K–$540K ARVs), Smith Hill (mature in-town; $260K–$400K entry, $360K–$530K ARVs), Olneyville (revitalizing; $240K–$380K entry, $330K–$510K ARVs), and Elmhurst (suburban family demand; $310K–$460K entry, $410K–$580K ARVs). 3-deker multi-family product is the dominant Rhode Island flip type.
Rhode Island's 3–4 month non-judicial power-of-sale foreclosure and no post-sale redemption right is one of the lender-friendliest in New England. Massachusetts exercises similar non-judicial framework (~60–90 days). Connecticut uses judicial (~6–9 months). Providence-area lenders typically cross-lend into Massachusetts and may lend into Connecticut. The discount on RI rates vs. CT typically runs 50–100 bps.
Multi-family fix-and-flip (3-deker conversion) and single-family fix-and-flip are the dominant Providence hard money products. Federal Hill, Mount Hope, and Smith Hill are active for 2–3 unit product. Buy-and-hold bridge loans are growing as investors build Providence rental portfolios. STVR/short-term-rental financing is limited in Providence proper but more active in coastal Rhode Island (Newport, Narragansett). New construction loans are uncommon in the tight RI market.
Yes — Providence-based hard money lenders typically serve Providence, Kent, Washington, Newport, and Bristol counties. Newport and Westerly coastal markets have moderate private-money and DSCR demand. Kent County (Warwick, Coventry) is a smaller suburban metro served by Providence-area operators. Most Rhode Island hard money lenders also actively serve Boston and Worcester markets in adjacent Massachusetts.