Hard Money Lenders Paterson
Rates Starting at 10%
West Forest Capital is a New Jersey hard money lender financing real estate investments up to $3 million. While serving the entire state, we have a strong presence in Paterson and have built a reputation as one of the fastest hard money lenders in New Jersey. We understand how every day matters in Paterson’s highly competitive real estate market.
- We are a direct lender, not a broker
- Same day pre-approval
- Funding in 3-5 days, although 1 day is possible
- Loan amounts up to $5 million
The Trust We've Earned
Property Types
- Multi-family
- Single-family Investment Properties
- Condominiums
- Apartments
- Co-ops
- Retail
- Small Office Buildings
- Industrial & Warehouse
- Duplex
- Triplex
- Quadplex
- Mixed-Use
Lending Parameters
Loan Size | $100,000 to $5,000,000 |
LTC | Up to 80% of purchase price |
Rehab Funding | 100% |
LTV | Up to 70% of the ARV |
Term | Standard is 12 months. 24-36 months is available |
Lien | First lien; second lien as additional collateral only |
Interest Rate | 10%–12.5% |
Points | 1.5–2% of the loan amount |
Counties Covered
West Forest Capital lends in the following counties in New Jersey:
- Hudson County
- Bergen County
- Passaic County
- Essex County
- Morris County
- Sussex County
- Warren County
- Union County
- Somerset County
- Middlesex County
- Hunterdon County
- Mercer County
- Monmouth County
- Burlington County
- Ocean County
- Atlantic County
- Cape May County
Read more about getting a hard money loan in the following areas:
Recently Funded Hard Money Loans

Jersey City, NJ

Newark, NJ

Elizabeth, NJ
Why Use a Hard Money Loan
- If you need funding fast. While banks often take months to process loans, West Forest Capital can provide same day hard money loan approval and get you funding in just 3-5 days. In truly urgent cases, we’re able to fund deals in as little as 1 day!
- If the property isn’t stabilized. In some cases, the challenge isn’t timing but the property itself. Traditional lenders may not approve loans for properties that need rehab, are missing a Certificate of Occupancy (CO), or lack solid rental history. Hard money lenders like West Forest Capital can finance these properties when banks say no.
- If you have poor credit. West Forest Capital understands that credit challenges can arise. That’s why we focus on the value of the property instead of the borrower’s FICO score or debt-to-income ratios when deciding on funding.
- If you don’t want to take a loan in your personal name. Many banks require loans to be made directly to individuals. However, if you prefer to hold the property in an LLC or own multiple properties that a bank won’t finance personally, hard money loans offer an ideal solution.


Why Choose A New Jersey Hard Money Lender
Our very first loan dates back to 2013, right here in New Jersey, and we’re proud to be a trusted local hard money lender in the Garden State. We’re familiar with the unique rent rules in towns like Elizabeth, Rahway, and Newark. Need help pulling permits? We can walk you through the steps in cities like Planview, Jersey City, and Union City. We know the subtle differences between East Orange and West Orange, understand the charm and character of the Jersey Shore, and we absolutely have a go-to pizza joint in Passaic.

Financing your Paterson, New Jersey Investment Property
New Jersey’s real estate market thrives thanks to its location near major urban centers like New York City and Philadelphia. The state boasts a strong, diverse economy driven by industries including pharmaceuticals and life sciences, financial services, manufacturing, technology, and transportation.
Because of this, the real estate sector remains highly liquid and offers excellent opportunities for investors to generate returns.
West Forest Capital, a reliable New Jersey hard money lender, is here to help you navigate and succeed in this competitive marketplace.

Asset-backed Lender Focused on Customized Solutions
Thanks to our deep understanding of New Jersey’s fix and flip scene, West Forest Capital can design innovative loan structures tailored to your hard money financing needs. We assess loans based on the value of the property, so in some cases, we’ve even been able to cover more than 100% of both the purchase and renovation costs.
West Forest Capital also provides the longest hard money loan term on the market — 3 years — perfect for buy-and-hold investors looking for flexibility.
Reach out to us or apply for a loan today!
Frequently Asked Questions: Hard Money Loans Paterson
What are hard money lenders?
Hard money lenders are non-bank, asset-based lenders. While both banks and hard money lenders provide mortgage loans, the lending criteria for hard money lenders often differ greatly from those of traditional banks. Hard money lenders place much greater importance on the property itself and less on the borrower’s financial history. This results in a faster underwriting process—loans can often be funded within a week, unlike the 2 to 3 months or more with banks. This speed is especially valuable in competitive markets like Paterson, where real estate investors often use hard money loans to quickly secure foreclosed properties at auction. Additionally, hard money lenders will finance properties that banks typically avoid, such as those without a Certificate of Occupancy (CO).
Hard money lending is ideal for individuals with poor or rebuilding credit since a low FICO score is not a barrier to obtaining a loan. These lenders also offer refinancing options and cash-out loans on investment properties. It is important to remember that hard money loans are only for investment real estate and cannot be used for residential mortgages; you cannot live in a property financed by a hard money lender.
How do New Jersey hard money loans work?
Because it’s significantly easier and faster to obtain a hard money loan, the interest rate is generally higher than what you would find with a traditional mortgage from a bank. In Paterson’s competitive real estate market, interest rates for these loans typically range between 9% and 12%. Additionally, borrowers can expect to pay between 1 and 3 points at closing. The loan term is usually short, most commonly 1 or 2 years. Hard money loans generally come in two parts: the first part covers the purchase price, which often ranges from 70% to 85% of the property’s cost; the second part is allocated for any rehabilitation work necessary to bring the property up to modern standards. Hard money lenders commonly finance up to 100% of the rehab costs. If no rehab is needed, this portion will simply not be included in the loan. When rehab is required, the funds are released in arrears, meaning the borrower completes a portion of the work before receiving the next tranche of funds. For example, if $50,000 in total rehab is necessary, the borrower might finish the first $15,000 of repairs and then request that amount from the lender. Once approved, they proceed with the next $15,000, get funded again, and continue in this manner until all rehab is completed. These loans are typically structured so that the combined loan amount—including both the purchase and rehab funds—does not exceed 65% of the property’s after-repair value (ARV). This ensures that the investment remains secure while allowing borrowers in Paterson to efficiently fund their projects.
What do hard money lenders look for?
Because a hard money loan is classified as a commercial loan, hard money lenders typically will not provide financing to individuals directly. Instead, they require that the borrower be an LLC. If you do not already have an LLC, there’s no need to worry, as setting one up is a straightforward process, and many investors create single-member LLCs that consist solely of themselves to meet this requirement.
When evaluating a loan request, hard money lenders in Paterson carefully analyze not only the purchase price of the property but also the anticipated after-repair value (ARV). This analysis is essential to ensure that the loan can be fully repaid. Acquiring a property at or below market value is a key factor in securing approval. Additionally, if the borrower is requesting funds to cover rehabilitation costs, the lender will want to monitor the rehab progress closely to confirm that repairs are being completed according to the agreed-upon schedule and within reasonable timelines. Another crucial component is having a clean title; any existing judgments, liens, or encumbrances on either the property or the LLC seeking the loan must be fully resolved before any loan proceeds are released.
Ultimately, hard money lenders want to make sure that borrowers are entering into investment transactions that will be profitable. From their perspective, your success means they can confidently expect to be repaid. They conduct thorough assessments to ensure that there is sufficient “spread” or financial cushion in the deal, meaning that the ARV comfortably covers the purchase price, rehab expenses, interest payments on the loan, closing costs, and any other associated fees, while still leaving an ample margin for a profitable investment. This careful scrutiny is a standard part of the lending process for Paterson investors who rely on hard money loans to finance their real estate ventures.
What is hard money used for?
A hard money loan is most commonly utilized in these situations:
- To acquire and renovate a property that a standard bank won’t finance (due to the property’s condition or the borrower’s credit history), with the plan to resell it to a retail buyer. This is often referred to as a “fix and flip.”
- To purchase and repair a property that a bank won’t finance, with the intent to rent it out. After the property is rented and becomes “stabilized,” it may be refinanced through a traditional bank at a lower rate.
- To finance a real estate purchase that must close within a timeframe too short for a traditional bank (for instance, in the case of a foreclosure auction). While hard money lenders can often fund a purchase in a week, a bank may take 2 or 3 months or longer.
- To obtain a fast cash-out refinance using a currently owned property as collateral.
- To quickly refinance an existing mortgage on the property that is due.
- To purchase a property under the ownership of an LLC. Since traditional banks often won’t lend to LLCs, a borrower looking to buy a property not in their personal name may use a hard money loan.
Are hard money loans the same as flip loans?
Hard money loans and flip loans are not identical, though they are very closely connected. Hard money loans are offered by private lenders through private money loans (like those from West Forest Capital) and are generally used for different real estate investment purposes, emphasizing the property’s value over the borrower’s credit. Flip loans are a specific type of hard money loan designed for investors who intend to buy, renovate, and quickly resell (flip) properties for profit. While every flip loan falls under the category of hard money loans, not all hard money loans are used exclusively for flipping properties; they can also support other types of real estate deals.