Can you extend a hard money loan?

Yes. Most hard money lenders, including Veristone Capital, offer loan extensions when a borrower needs additional time to complete a project or execute their exit strategy. Extensions are not automatic and must be approved by the lender, but they are a standard part of private lending. The key is communicating early and showing that the project is still on track.

How much does a loan extension cost?

Extension fees typically range from 0.5% to 1% of the outstanding loan balance, depending on the lender and the length of the extension. You will also continue to pay interest during the extension period. Veristone Capital discloses extension terms upfront so there are no surprises if you need more time.

How far in advance should you request a loan extension?

Request an extension at least 30 days before your loan matures. Waiting until the last minute limits your options and can result in default fees or a rushed sale. The earlier you reach out, the more flexibility Veristone Capital has to structure a solution that works for both sides.

What is a change order on a construction or rehab loan?

A change order is a formal revision to the original scope of work on a project. It could mean adding a new line item, removing planned work, or adjusting costs based on what was found during construction. Change orders are common in rehab and construction projects and need to be documented and approved by the lender before funds are released.

How do change orders affect my hard money loan?

A change order can increase or decrease the total project budget, which may affect the loan amount, the draw schedule, or the after-repair value used in underwriting. If a change order increases the total cost, the lender will re-evaluate the deal to make sure it still pencils. Veristone Capital reviews change orders quickly so your project does not stall.

Can you add funds to an existing hard money loan for unexpected costs?

In some cases, yes. If unexpected costs come up during a project, Veristone Capital can evaluate whether additional funds can be added to the existing loan. This depends on the current LTV, the updated ARV, and whether the revised budget still supports the deal. It is not guaranteed, but we work with borrowers to find solutions when the numbers make sense.

What happens if you go over budget on a hard money loan project?

Going over budget puts pressure on your margins and can affect your ability to repay the loan on time. If the overage is significant, you may need to bring additional cash to the project or request a loan modification. The best approach is to notify your lender as soon as you see costs trending higher so you can address the shortfall before it becomes a problem.

How can I avoid needing a loan extension?

Build realistic timelines from the start and pad your schedule by at least 30 days. Get contractor bids locked in before closing, have materials ordered early, and keep your permits on track. Experienced borrowers also maintain a cash reserve for surprises. A well-planned project with a clear scope of work is the single best way to stay on schedule and avoid extension fees.

What Borrowers Ask About Loan Extensions and Change Orders

Real estate projects rarely go exactly as planned. Whether you need more time to finish a rehab or your scope of work has changed, Veristone Capital works with borrowers to adjust the loan when circumstances shift.

Can you extend a hard money loan?: Yes. Most hard money lenders, including Veristone Capital, offer loan extensions when a borrower needs additional time to complete a project or execute their exit strategy. Extensions are not automatic and must be approved by the lender, but they are a standard part of private lending. The key is communicating early and showing that the project is still on track.
How much does a loan extension cost?: Extension fees typically range from 0.5% to 1% of the outstanding loan balance, depending on the lender and the length of the extension. You will also continue to pay interest during the extension period. Veristone Capital discloses extension terms upfront so there are no surprises if you need more time.
How far in advance should you request a loan extension?: Request an extension at least 30 days before your loan matures. Waiting until the last minute limits your options and can result in default fees or a rushed sale. The earlier you reach out, the more flexibility Veristone Capital has to structure a solution that works for both sides.
What is a change order on a construction or rehab loan?: A change order is a formal revision to the original scope of work on a project. It could mean adding a new line item, removing planned work, or adjusting costs based on what was found during construction. Change orders are common in rehab and construction projects and need to be documented and approved by the lender before funds are released.
How do change orders affect my hard money loan?: A change order can increase or decrease the total project budget, which may affect the loan amount, the draw schedule, or the after-repair value used in underwriting. If a change order increases the total cost, the lender will re-evaluate the deal to make sure it still pencils. Veristone Capital reviews change orders quickly so your project does not stall.
Can you add funds to an existing hard money loan for unexpected costs?: In some cases, yes. If unexpected costs come up during a project, Veristone Capital can evaluate whether additional funds can be added to the existing loan. This depends on the current LTV, the updated ARV, and whether the revised budget still supports the deal. It is not guaranteed, but we work with borrowers to find solutions when the numbers make sense.
What happens if you go over budget on a hard money loan project?: Going over budget puts pressure on your margins and can affect your ability to repay the loan on time. If the overage is significant, you may need to bring additional cash to the project or request a loan modification. The best approach is to notify your lender as soon as you see costs trending higher so you can address the shortfall before it becomes a problem.
How can I avoid needing a loan extension?: Build realistic timelines from the start and pad your schedule by at least 30 days. Get contractor bids locked in before closing, have materials ordered early, and keep your permits on track. Experienced borrowers also maintain a cash reserve for surprises. A well-planned project with a clear scope of work is the single best way to stay on schedule and avoid extension fees.

Tim Mushen

VP of Marketing and Technology

Disclaimer: Veristone Capital does not provide legal or financial advice. The information on this page is for general informational purposes only and should not be construed as legal, financial, or tax advice. Consult a qualified attorney, accountant, or financial advisor to evaluate your specific situation before making any investment or lending decisions.

Ready to get started?

Contact Veristone Capital today to discuss your project and get a fast, no-obligation quote.

Get PreQualified

What Borrowers Ask About Loan Extensions and Change Orders

Ready to get started?

Loan Types

Resources

Company