Hard Money and Private Lending Rates Today (Updated Nov. 2026)
Hard money loan rates disclosed by public lenders run 9% to 12% plus up to 2 points. Private lending rates and benchmarks as of Nov. 12, 2026, with sources.
Why it matters
- Manhattan Bridge Capital's third-quarter report, filed Oct. 21, says its hard-money loans typically carry fixed rates of 9% to 12% plus 0% to 2% in points; Velocity Financial's new loans averaged 10.12% in the third quarter.
- Benchmarks as of Nov. 12 were 7.00% for the prime rate, 3.89% for SOFR and 5.10% for the 10-year Treasury yield, with Freddie Mac's 30-year mortgage average down to 7.11%.
- A lender's own cost of funds sets the floor under its rates; Manhattan Bridge's main bank credit line cost about 7.2% at Sept. 30.
Explainer: background on how this part of the market works.
As of Nov. 12, 2026, hard money loan rates disclosed by public lenders range from about 9% to 12% a year, plus 0% to 2% of the loan in points, according to Manhattan Bridge Capital's quarterly report for the period ended Sept. 30. Benchmarks: prime 7.00%, SOFR 3.89% and the 10-year Treasury yield 5.10%, according to the Federal Reserve, the New York Fed and the U.S. Treasury, and Freddie Mac's 30-year mortgage average fell to 7.11%.
This page is refreshed weekly; last updated Nov. 12, 2026. The Federal Reserve held its target range at 3.75% to 4.00% on Oct. 28, and the prime rate stayed at 7.00%. Velocity Financial's figures were updated Nov. 4 with its third-quarter results.
These are figures public lenders disclose to investors, not a survey of the whole market. Rates vary widely by deal, borrower, property and lender, and nothing here is a quote, an offer or advice. Every figure below carries its own as-of date and a link to its source. For where to find more data on private lenders, see our private lending market data hub; for daily benchmark readings, see our rates and data page.
Hard money loan rates today: the table
| Figure | Value | As of | Source |
|---|---|---|---|
| Typical fixed rate on hard-money loans, Manhattan Bridge Capital | 9% to 12% a year | Quarter ended Sept. 30, 2026 (filed Oct. 21) | Form 10-Q |
| Typical origination fees ("points"), Manhattan Bridge Capital | 0% to 2% of principal | Quarter ended Sept. 30, 2026 | Form 10-Q |
| Stated rates across Sachem Capital's loan book | 7.25% to 15.0% | June 30, 2026 | Form 10-Q |
| Typical default interest rate, Sachem Capital | 18.0% | June 30, 2026 | Form 10-Q |
| Effective interest rate on Sachem loans held for investment | 11.4% | Q2 2026 (released Aug. 5) | Earnings release |
| Weighted average coupon on new Velocity Financial loans held for investment | 10.12% (10.48% a year earlier) | Q3 2026 (released Nov. 4) | Earnings release |
| Weighted average coupon on Velocity's total loan portfolio | 9.75% | Q3 2026 (released Nov. 4) | Earnings release |
| Weighted average coupon on new KKR Real Estate Finance commercial bridge loans | Benchmark plus 2.6 points (two floating-rate senior loans, 63% loan-to-value) | Q3 2026 (released Oct. 28) | Earnings release |
| Weighted average all-in yield, KKR Real Estate Finance loan portfolio | 7.0% | Sept. 30, 2026 | Earnings release |
| Bank prime loan rate | 7.00% | Nov. 10, 2026 (latest H.15 reading; unchanged since Sept. 17) | Federal Reserve H.15 |
| Federal funds target range | 3.75% to 4.00% | Oct. 28, 2026 (held at the Oct. 27-28 meeting; in effect since Sept. 17) | Federal Reserve statement |
| Effective federal funds rate | 3.88% | Nov. 10, 2026 (latest H.15 reading) | Federal Reserve H.15 |
| Secured Overnight Financing Rate (SOFR) | 3.89% | Nov. 10, 2026 (published Nov. 12) | New York Fed |
| 10-year Treasury yield (par yield) | 5.10% (4.98% on Nov. 10) | Nov. 12, 2026 | U.S. Treasury |
| 2-year Treasury yield (par yield) | 4.86% (4.73% on Nov. 10) | Nov. 12, 2026 | U.S. Treasury |
| 30-year fixed mortgage average | 7.11% (7.18% a week earlier; 6.24% a year earlier) | Week of Nov. 12, 2026 | Freddie Mac PMMS |
| 15-year fixed mortgage average | 6.45% (6.57% a week earlier; 5.49% a year earlier) | Week of Nov. 12, 2026 | Freddie Mac PMMS |
Nov. 12 is a Thursday. The bond market was closed for Veterans Day on Wednesday, Nov. 11, and SOFR, the effective fed funds rate and the Fed's prime rate series are published the next business day, so their latest readings are for Tuesday, Nov. 10. Treasury did not post yields for Nov. 11. Velocity Financial released third-quarter results on Nov. 4, and its figures above are from that release; see our report on Velocity Financial's third-quarter results. As of Nov. 12, Sachem Capital had not filed third-quarter results on the SEC's EDGAR system, so its figures are from the second quarter, before the Federal Reserve raised its target range in September. We will update them when it reports. KKR Real Estate Finance makes large floating-rate loans on institutional commercial property, a different market from hard money, but its pricing shows what bigger bridge borrowers pay over SOFR; see our report on KKR Real Estate Finance's third-quarter loan write-offs.
What are hard money loan rates right now?
The most recent public disclosure is Manhattan Bridge Capital's. In its quarterly report for the period ended Sept. 30, filed Oct. 21, the New York hard-money lender says its loans "typically have a maximum initial term of 12 months bearing interest at a fixed rate of 9% to 12% per year," and that it usually receives points of 0% to 2% of the original principal, plus other underwriting and funding fees. Interest is payable monthly.
Competition is holding those rates down. Manhattan Bridge said its interest income fell to about $1.66 million in the third quarter from about $1.77 million a year earlier because of "lower interest rates charged to borrowers due to increased competition in the marketplace." Origination fees rose to about $392,000 from about $265,000.
The three lenders' books differ. Manhattan Bridge lends in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. Sachem makes "short-term (i.e., one to three years), secured, non-bank loans to real estate owners and investors." Velocity lends on 1-to-4 unit rental and small commercial properties.
What are hard money lending rates made of?
A hard money loan's cost has more parts than a single interest rate.
- Interest rate. Usually fixed for the short term of the loan. Manhattan Bridge's loans have a maximum initial term of 12 months.
- Points. An upfront fee, quoted as a percentage of the loan. On a $500,000 loan, 2 points is $10,000. (Illustrative figures.)
- Interest-only payments. "Most of the loans provide for receipt of interest only during the term of the loan and a balloon payment at the end of the term," Manhattan Bridge says. On a $500,000 loan at 10%, interest-only payments are about $4,167 a month. (Illustrative figures.)
- Default rate. A higher rate that applies if the borrower defaults. Sachem says its default rate is generally 18.0%, though it "could be more or less depending on state usury laws."
Leverage is part of the price too. Manhattan Bridge says acquisition loans usually do not exceed 75% of appraised value, and construction loans typically run up to 80% of construction costs. For how lenders measure that, see our explainer on loan-to-cost and loan-to-value ratios.
As a rough guide, a one-year loan at 10% with 2 points costs about 12% of the loan amount in its first year, before other fees. (Illustrative figures.)
What drives private lending rates?
Three things set the rate a private lender charges.
1. Benchmarks. Private lenders compete with bank loans priced off prime and with long-term loans priced off the 10-year Treasury. The Fed raised its target range to 3.75% to 4.00% effective Sept. 17, and the prime rate rose to 7.00% the same day, according to Federal Reserve data on FRED. On Oct. 28 the Fed's policy committee voted 10-2 to keep the range at 3.75% to 4.00%, according to its statement; Lisa D. Cook and Beth M. Hammack dissented, preferring a quarter-point increase. The prime rate stayed at 7.00%, according to The Wall Street Journal's money rates table.
2. The lender's cost of funds. Many private lenders borrow to make loans. Manhattan Bridge's $32.5 million Webster Bank credit line charges, at the company's choice for each draw, SOFR plus a premium or a base rate plus 2.00%, plus a 0.5% agency fee; borrowings on it carried about 7.2% at Sept. 30, including the fee. A separate $10 million Valley National Bank line, priced at term SOFR plus a margin, carried about 6.7%, according to the 10-Q. Velocity said its portfolio-related debt cost 6.04% in the third quarter, down from 6.27% a year earlier. That borrowing cost is the floor under what the lender must charge. Our warehouse line of credit guide explains how these facilities work and why they move with benchmarks.
3. Risk and margin. The gap between what a lender earns and what it pays is its margin. Velocity reported a portfolio net interest margin of 3.78% in the third quarter, up from 3.65% a year earlier. Sachem reported a net interest margin of 1.9%, down from 2.3%.
How do private lending rates compare with bank and mortgage rates?
Private loans cost more. The 9% to 12% range Manhattan Bridge disclosed is 2 to 5 percentage points above the 7.00% prime rate, and Velocity's 10.12% average coupon on new third-quarter loans is about 3 points above Freddie Mac's 7.11% average 30-year mortgage rate for the week of Nov. 12. Borrowers pay that premium for speed, short terms and underwriting based on the property rather than personal income.
For how a higher takeout rate cuts the loan a bridge borrower can refinance into, see our explainer on how DSCR loans are sized, and our report on the 10-year Treasury yield and refinance takeouts.
What are private banking lending rates?
Private banking lending rates are the rates banks charge wealthy clients of their private banking or wealth management units, which is a different market from private or hard money lending. PNC Private Bank, for example, describes securities-based lines of credit that use "your investment assets as collateral," home loans "tailored to high and ultra-high net worth borrowers," and a "relationship discount" on jumbo mortgage rates for clients with assets at the bank. Its page does not publish rates.
Hard money and private lending rates, the subject of this page, are what non-bank lenders and funds charge real estate investors on short-term loans secured by property. They are usually much higher than a bank's rates because the loans are faster, shorter and riskier.
Frequently asked questions
What is a typical hard money loan rate in 2026?
Manhattan Bridge Capital's third-quarter report shows 9% to 12% plus 0% to 2% in points. Velocity Financial's new loans averaged 10.12% in the third quarter, and Sachem Capital's portfolio carried stated rates of 7.25% to 15.0% at June 30.
Are hard money loans interest-only?
Often. Manhattan Bridge says most of its loans pay interest only during the term, with a balloon payment at the end.
Why are private lending rates higher than bank rates?
Private lenders fund themselves at higher cost than banks, often on credit lines priced over SOFR, and they take on short-term, faster and riskier loans. Their rates must cover both.
Do private lending rates follow the Fed?
Indirectly. A Fed move changes prime and SOFR, which changes lenders' borrowing costs and borrowers' alternatives. Manhattan Bridge's experience shows competition can push rates down even when benchmarks rise.
How often is this page updated?
Weekly, after Freddie Mac's Thursday mortgage survey, and sooner when a listed lender files new results or the Fed changes rates.
Rates vary by deal. Nothing in this article is a rate quote, an offer of credit or financial, legal or investment advice.
Sources
- Manhattan Bridge Capital, Form 10-Q for the quarter ended Sept. 30, 2026 (filed Oct. 21, 2026)
- Sachem Capital, Form 10-Q for the quarter ended June 30, 2026
- Sachem Capital, Second quarter 2026 results, Form 8-K exhibit 99.1 (Aug. 5, 2026)
- Velocity Financial, Third quarter 2026 results, Form 8-K exhibit 99.1 (filed Nov. 5, 2026); first released on Business Wire (Nov. 4, 2026); full text as syndicated by StockTitan
- SEC EDGAR, filing indexes for Sachem Capital and Velocity Financial (checked Nov. 12, 2026)
- Federal Reserve Board, H.15 Selected Interest Rates (data for Nov. 10, 2026)
- Federal Reserve Bank of St. Louis, FRED, Federal funds target range, upper limit, lower limit and bank prime loan rate
- Federal Reserve Board, FOMC meeting calendars
- Federal Reserve Board, Federal Reserve issues FOMC statement (Oct. 28, 2026)
- The Wall Street Journal, Money rates: prime rate (Oct. 28, 2026; U.S. prime effective Sept. 17, 2026)
- Federal Reserve Bank of New York, Secured Overnight Financing Rate data (SOFR for Nov. 10, 2026)
- U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates (Nov. 12, 2026)
- Freddie Mac, Primary Mortgage Market Survey (week of Nov. 12, 2026)
- KKR Real Estate Finance Trust, Third-quarter 2026 results, Form 8-K exhibit 99.1 (Oct. 28, 2026)
- PNC, Private Bank lending and deposit solutions
- Illustrative calculations of points, interest-only payments and first-year cost are by The Lender Market. Loan terms vary by lender.
