The quick read: Compare Connecticut hard money lenders by lender type and by total cost to your exit, not by the headline rate. Put every quote on one scorecard (points, rate and index, leverage basis, draw process, extension cost), then add the three Connecticut items that change the math: the conveyance tax on your resale deed, lead rules on pre-1978 housing, and whether any state interest-rate limit applies to the note.
A hard money loan on a Hartford three-family or a Bridgeport colonial is priced on the property and the plan, and the lender that looks cheapest on rate can be the most expensive once points, draw delays and an extension are added. This guide gives you a lender-type scorecard dated September 2026, the Connecticut tax and agency rules that move the numbers, and the questions to put to every lender. It names no private lenders; it compares types. For the wider state market, see the Connecticut market overview.
What should you compare first when choosing a hard money lender in Connecticut?
The first comparison between Connecticut hard money lenders should be the total cost and time to your exit, meaning the points, the interest rate and the index it floats over, the leverage basis, how rehab draws are released, and what an extension costs if the project runs long. Ask each lender for all five in writing.
A rate quote on its own tells you little, and a leverage percentage means nothing until you know what it is a percentage of. Score every quote on the same lines:
Points: the upfront fee as a percentage of the loan; ask whether it is charged on the full commitment or only on funds actually drawn.
Rate and index: fixed for the term, or floating over a named index such as SOFR or the prime rate; get the index and any floor written into the term sheet.
Leverage basis: purchase price, as-is value, total project cost (LTC) or after-repair value (ARV); ask which one the lender's percentage applies to, and whether rehab is funded inside the loan or out of your pocket first.
Draws: who inspects the work, how quickly funds are wired after an inspection, and whether each draw carries a fee.
Extensions: how many are available, how long each lasts, and what each one costs.
Exit terms: whether the note carries an exit fee or a minimum number of months of interest if you sell early.
For how these cost lines add up on a typical project, see how fix-and-flip loans work and what they cost, and for the mechanics of rehab funding, see how a fix-and-flip draw schedule works.
Which lender types compete for a Connecticut hard money loan, and how do they compare?
Connecticut hard money borrowers can compare several lender types, including local private individuals, private lending funds, national fix-and-flip lenders, and banks or credit unions with investor-loan programs, and each type sets its own leverage, draw and extension terms. Compare them on one dated scorecard, and ask each lender how long its quoted terms hold.
The table below is a scorecard of what to get in writing from each type, not a rate sheet. No rate, point or leverage figure appears here; use only the figures each lender quotes you in writing. The Connecticut column points to the state rule most likely to matter for that type.
Connecticut hard money lender types compared (scorecard dated September 2026)
| Lender type | Points and rate: get in writing | Leverage basis: ask | Draws: ask | Extensions: ask | Connecticut item to check |
|---|---|---|---|---|---|
| Local private individual | Points, rate, any minimum interest and default rate, all in the recorded note | Purchase price, as-is value or ARV, and whether rehab is funded | Who inspects, and how fast a draw is wired | Whether an extension is written into the note or left to renegotiation | Interest limits: ask your attorney whether any Connecticut interest-rate limit or exception applies to this note |
| Private lending fund | Points, rate, index and floor on one term sheet | LTC and ARV limits, both stated | Draw schedule, inspection fee, turnaround after inspection | Number, length and fee of each extension | Lead: whether the rehab budget and draws fund lead-safe work on pre-1978 housing |
| National fix-and-flip lender | Points, rate, and any processing, underwriting or doc fees | LTC and ARV limits, and how the ARV is set | Whether draws use a third-party inspector and how long approval takes | Extension fee and any rate step-up | Conveyance tax: model the state and municipal tax on the resale deed in your exit |
| Bank or credit union investor loan | Rate, index and fees; any deposit or relationship requirement | As-is or purchase basis, and whether rehab is funded | Whether rehab is funded at all, and on what schedule | Whether an extension is available or the loan must be refinanced | Interest limits: ask your attorney whether the lender's type changes which Connecticut interest-rate rules apply |
| Brokerage (YieldStack, publisher of this page) | It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. | YieldStack is a commercial mortgage brokerage, not a lender. | Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed. | — | — |
Read the table across, not down: a lender that looks best on points can still lose on draw speed or on the cost of an extension. For how much room there is on the fee lines, see whether you can negotiate points on a hard money loan.
How does Connecticut's conveyance tax change the math on a flip exit?
Connecticut's real estate conveyance tax changes a flip's math because it is due on the deed that conveys the property at resale, at a state rate of 0.75% on residential real property up to $800,000 plus a municipal rate of 0.25%, so it belongs in the exit budget that repays your hard money loan.
The Connecticut Department of Revenue Services states the marginal brackets for residential real property that took effect July 1, 2020:
State rate, residential real property up to and including $800,000: 0.75%
State rate, residential real property from $800,000.01 to $2,500,000: 1.25%
State rate, residential real property over $2,500,000: 2.25%
Two more DRS publications add lines that matter to investors:
State rate, nonresidential property other than unimproved land: 1.25%, per the DRS FY 2022-23 Annual Report for conveyances on or after July 1, 2020
Municipal rate: 0.25%, and certain designated municipalities known as target investment communities may impose an additional rate of up to 0.25%, per DRS Special Notice 2011(3), effective July 1, 2011
An illustration of the arithmetic, not a quote: on a $400,000 resale of a residential property, the 0.75% state rate is $3,000 and the 0.25% municipal rate is $1,000, a combined $4,000 before any additional municipal tax. If your sale contract has you paying it, that money comes out of the same proceeds that pay off the loan, points and interest, so a lender comparison that ignores it overstates your margin.
Two things to confirm with your closing attorney: which bracket applies to your property type once the price crosses $800,000, and, if your exit is a refinance into a rental loan rather than a sale, whether any conveyance tax applies at all.
How do Connecticut's older homes and lead rules affect a rehab loan?
Connecticut's older housing affects a rehab loan because homes built before 1978 may contain lead paint, and the Department of Public Health's 2021 surveillance report states that 71% of the state's housing stock was built before 1980 and 44% before 1960, so lead-safe work often belongs in the budget and schedule your lender funds.
Three rules shape what a flip or rental rehab costs and how long it takes:
The federal renovation rule. The EPA's Renovation, Repair and Painting (RRP) page, last updated June 17, 2026, says anyone paid to disturb painted surfaces in homes built before 1978 must be certified, and that the rule applies to anyone who buys, renovates and sells homes for profit. Connecticut is not among the states EPA lists as running their own RRP program. The Department of Public Health's landlord guidance also says the RRP rule requires landlords to hire an EPA RRP-certified firm for renovations and repairs on pre-1978 housing.
The purchase disclosure and inspection window. The Department of Public Health's disclosure page says sellers of housing built before 1978 must give buyers the lead pamphlet and disclose known lead-based paint, and that once under contract a purchaser has a 10-day period to conduct a lead inspection, which the purchaser may waive. A purchaser who inspects must hire a DPH-licensed lead consultant contractor.
The abatement sequence on a rental. If lead hazards are found, the Department of Public Health says the local health department must issue a lead abatement order to the landlord, the landlord must submit a written abatement plan, abatement can begin only after the plan is approved, and the health department completes a visual assessment and clearance dust wipe sampling before reoccupancy.
Each of those steps can move a timeline, and a hard money loan has a fixed term. Before you pick a lender, ask whether the draw schedule funds lead-safe work and clearance testing, whether the rehab budget line for lead scope is accepted as submitted, and whether an extension is available if an abatement approval runs past the loan's maturity.
What should you ask your attorney about Connecticut interest-rate rules?
Before you sign a Connecticut hard money note, ask your attorney whether any state limit on interest applies to it, whether any statutory exception covers the lender or the loan, and which charges on the term sheet count as interest rather than fees under Connecticut law. Get the answer in writing before closing.
Ask specifically whether the answer changes with who the lender is, the loan amount, whether the funds are for business or investment use, and how the note is secured, and bring the draft note and term sheet rather than a summary. Also ask which lines the note calls fees and which it calls interest, and whether that split matters under Connecticut law.
Where do benchmark rates stand in September 2026, and why does that matter for a quote?
Benchmark rates matter for a Connecticut hard money quote because a floating-rate loan resets off a named index, and in September 2026 the Federal Reserve raised the federal funds target range to 3.75%–4.00% on September 16, with SOFR at 3.87% as of September 23 and the bank prime rate at 7.00% as of September 21.
Federal funds target range: 3.75%–4.00%, after the FOMC's 1/4-point increase on 2026-09-16
SOFR: 3.87% as of 2026-09-23
Bank prime loan rate: 7.00% as of 2026-09-21
These are benchmarks, not hard money rates; they tell you how to read a quote. If a term sheet floats, ask which index it floats over, what the margin is, whether there is a floor, and how often it resets. If it is fixed for the term, the index still matters when you compare a fixed quote against a floating one on the same project. This article makes no forecast of where any index goes next.
How do Hartford, New Haven, Bridgeport and Stamford change the comparison?
Hartford, New Haven, Bridgeport and Stamford add a lead-risk layer to the comparison, because the Department of Public Health's 2021 report lists all four among the ten Connecticut towns where 63% of the state's elevated childhood blood lead cases occurred, so ask each lender how lead scope and draw timing are handled in those cities.
The same report counts 659 of 1,046 elevated blood lead cases in those ten towns in 2021. For an investor, that is not a reason to avoid the four cities; it is a reason to price the lead scope before you choose a lender. A rehab budget that leaves out certified lead-safe work, clearance testing and the time an abatement plan takes to approve can leave a draw schedule that no longer matches the job.
The conveyance tax brackets turn on the resale price. Where a resale price crosses $800,000, the residential brackets move from 0.75% to 1.25% on the portion above that line, and above $2,500,000 to 2.25%. Run the exit at your realistic resale price, not at a round number, and compare lenders on what is left after the tax, the payoff and the fees.
How do you get hard money lenders competing for a Connecticut loan?
You get hard money lenders competing for a Connecticut loan by sending the same complete file to several lender types at once, including the purchase contract, a rehab budget with any lead-safe scope, the draw schedule you need, support for the after-repair value, and a written exit plan, so their terms land on one scorecard.
A commercial mortgage brokerage can run that comparison for you. YieldStack, the publisher of this guide, is one route. YieldStack is a commercial mortgage brokerage, not a lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Submit your Connecticut hard money deal with the property, the rehab budget and the exit plan, and compare the terms that come back on the scorecard above. For the loan product itself, see the fix-and-flip loan overview.
The bottom line
Compare Connecticut hard money lenders by type and by total cost to exit: points, rate and index, leverage basis, draws and extensions, all in writing and dated. Then add what Connecticut changes: the conveyance tax on the resale deed, lead rules on pre-1978 housing that can reshape a rehab budget and timeline, and interest-rate questions your attorney should check against the note. The cheapest quote is the one that still works after all three.