Hard money loan rates are generally higher than those of conventional loans, with actual rates differing depending on the lender and the borrower’s qualifications. The average interest rate for hard money loans in Tampa can range from 6.99% to 18%, depending on the direct lender’s terms. This is slightly higher than the national average of 11.05%, with the average interest rate for hard money loans in Tampa, including bridge loans, being approximately 11.6%.
Higher interest rates for hard money loans can be attributed to the increased risk associated with these types of loans, as they are typically short-term and asset-based. However, the speed and flexibility offered by hard money loans make them an attractive option for investors and homeowners who require quick access to capital.