Hard Money Extension, Points and Default Interest in SEC Filings
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Quick Answer
As of October 19, 2026, the best public record of what a hard money lender actually charges comes from the lenders that file with the SEC. Manhattan Bridge Capital (Nasdaq: LOAN), a New York lender, reported a weighted average contractual rate of 11.12% on its 88 loans at December 31, 2025, up from 9.53% in 2021, and says most loans carry a fixed rate of 9% to 12.5% plus “points” of 0% to 2%. Its June 30, 2026 10-Q narrows that to 9% to 12% and says revenue fell because of “lower interest rates and origination fees charged to borrowers as a result of increased competition in the marketplace.” Sachem Capital (NYSE American: SACH), a Connecticut lender, quotes 10.0% to 13.0%, 1% to 3% in points, extension points on top and a default rate of up to 24%; its book averaged 13.10% at December 31, 2025 including default interest, and 11.46% at June 30, 2026 after five loans came off the default rate. For contrast, Arbor Realty Trust’s 386 multifamily bridge loans paid a weighted average of 6.39% at June 30, 2026. Rate is only part of the price: the filings show that extensions, extra points and default interest are written into the contract. These are two lenders’ own terms, not a market average; federal HMDA medians are on our hard money loan rates page.
Key Takeaways
- Manhattan Bridge Capital’s weighted average contractual rate: 10.33% (2020), 9.53% (2021), 10.44% (2022), 11.49% (2023), 11.36% (2024), 11.12% (2025). The stated range for most loans moved from 8% to 14% (FY2021 10-K) to 9% to 12% (June 30, 2026 10-Q); points stayed at 0% to 2% in every filing.
- Interest income plus origination fees came to about 13.7% of average principal in 2025 (13.9% in 2024, 13.3% in 2023), about 2.35 points of it from fees that include extension fees (our arithmetic). That is lender revenue per dollar lent, not the APR on a new loan.
- The loan is meant to be short, but extensions are routine. Manhattan Bridge’s loans have an initial term of not more than 12 months, its 10-Q lists loans originally due or committed as far back as 2020 still on the book, and it says “the Company receives a fee in connection with the extension of the loans.”
- Default interest is in the contract. Sachem’s 10-K states a default rate of up to 24% a year against a 10% to 13% base; its book averaged 13.10% in 2025 including default interest. On $300,000, 24% versus 13% is $2,750 more per month (our arithmetic).
- In 2026 the lender-side signal is lower prices: Manhattan Bridge’s origination fees fell 24.6% in the first half of 2026 against the first half of 2025 and its stated top rate dropped from 12.5% to 12%. Sachem originated 11 loans in the same six months, against 30 in all of 2025.
- Institutional bridge money is much cheaper but different: Arbor’s bridge loans averaged a 6.39% pay rate and Ladder Capital’s first mortgages a 7.26% yield at June 30, 2026, with SOFR at 3.68%. At year-end 2025 the gap to Manhattan Bridge was 4.73 points (our arithmetic).
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What public hard money lenders say they charge: rates, points, extensions, default interest and defaults, SEC filings 2020-2026
131 rows: Manhattan Bridge Capital and Sachem Capital stated terms, weighted average rates, originations, fees and defaults from their 10-Ks and 10-Qs; Arbor, Ladder and Blackstone Mortgage Trust bridge rates; SOFR; our arithmetic and a hypothetical cost example. One source per row.
What two public hard money lenders put in writing
Most hard money pages quote “starting at” rates. A lender that is a public company has to describe its loans in an annual report, and the description is specific. We read the Forms 10-K and 10-Q of the two small-balance hard money lenders that file with the SEC: Manhattan Bridge Capital (New York metro area, New Jersey, Connecticut and Florida) and Sachem Capital (Connecticut, Florida, Massachusetts and New York). Neither is a market average and neither speaks for private lenders, but they are real books of real loans.
Stated loan terms in the latest filings
| Term | Manhattan Bridge Capital (FY2025 10-K; June 30, 2026 10-Q) | Sachem Capital (FY2025 10-K) |
|---|---|---|
| Fixed interest rate | Typically 9% to 12.5% (10-K); 9% to 12% (10-Q) | Typically 10.0% to 13.0% |
| Points / origination fees | 0% to 2% of principal, plus other underwriting and funding fees | Generally 1% to 3% |
| Extension | May extend; “we generally receive additional ‘points’ and other fees” | “Additional points are payable upon the extension” |
| Default interest | In a substantial portion of loan agreements: the greater of the stated rate and prime plus 3.0% | Default rate of up to 24% per annum |
| Initial term | Not more than 12 months | Typically one to three years |
| Leverage | Acquisition loans usually not above 75% of appraised value; construction up to 80% of construction costs | Original principal not above 70% of fair market value |
| Personal guarantee | Each loan guaranteed by the principal(s) of the borrower | Borrower principals’ interests pledged and/or personal guarantees |
| Owner-occupants | Real estate investors; properties generally not income producing | Does not lend to owner occupants of residential real estate |
Two points stand out. First, the price is three things, not one: a rate, points at closing and more points if you need more time. Second, the harshest term is the one nobody quotes in an advertisement: Sachem’s ceiling of 24% is almost double the top of its normal range. Our Sachem Capital review covers its loan book, losses and the pending IRG Realty Trust transaction in full.
Six years of one lender’s average rate
The weighted average contractual rate is the average rate on every loan on the book at year-end, weighted by balance. Manhattan Bridge Capital reports it every year, which gives a series that advertisements never do.
Manhattan Bridge Capital: stated range and actual average, 2020 to 2025
| Year-end | Stated range for most loans (that year’s 10-K) | Weighted average rate | Loans outstanding | Principal earning interest | Loans originated in year |
|---|---|---|---|---|---|
| 2020 | n/a | 10.33% | 128 | $58,098,000 | $43,719,000 |
| 2021 | 8% to 14% | 9.53% | 131 | $65,715,000 | $49,268,000 |
| 2022 | 9% to 12% | 10.44% | 122 | $74,483,000 | $60,916,000 |
| 2023 | 9% to 13.5% | 11.49% | 120 | $73,048,000 | $56,301,000 |
| 2024 | 9% to 13% | 11.36% | 95 | $65,974,000 | $41,966,000 |
| 2025 | 9% to 12.5% | 11.12% | 88 | $60,674,000 | $35,336,000 |
| June 30, 2026 (10-Q) | 9% to 12% | not reported | not reported | $62,378,848 total loans | not reported |
The average moved 1.96 points between 2021 and 2023 as short-term rates rose, then eased by 0.37 point from 2023 to 2025 (our arithmetic). The loan count fell from 131 in 2021 to 88 in 2025 while the average balance grew from $502,000 to $689,000. The 2025 10-K gives one reason for the rise: “We have increased the interest rates charged on our commercial loans in order to offset our increased interest costs.” Its weighted term to maturity, not counting extensions, was 5.52 months at year-end 2025.
The rate is not the whole price: fees, extensions and default interest
Interest income and fee income are reported separately, so we can estimate what the lender collected per dollar of loans.
Manhattan Bridge Capital: revenue per dollar of average loans
| Year | Interest income | Origination fees | Interest as % of average principal | Fees as % of average principal | Both as % of average principal |
|---|---|---|---|---|---|
| 2023 | $7,976,232 | $1,820,024 | 10.81% | 2.47% | 13.28% |
| 2024 | $8,046,560 | $1,642,081 | 11.58% | 2.36% | 13.94% |
| 2025 | $7,175,043 | $1,491,264 | 11.33% | 2.35% | 13.69% |
The percentages are our arithmetic, with average principal taken as the mean of the year-end and prior year-end balances of loans earning interest. Origination fees in the income statement include fees on extensions, so this is lender revenue per dollar lent, not the cost of one new loan. It does say that on this book about 2.4 points a year came on top of the interest.
To see what a loan can cost, here is a hypothetical, built only from numbers in the filings except where marked. A $300,000 loan for 12 months at the 11.12% weighted average rate costs $33,360 in interest. Add 2 points at closing (the top of Manhattan Bridge’s range), $6,000, and the first year costs $39,360, or 13.1% of the loan. If the project runs six months long, interest adds $16,680; an extension fee of 1 point, $3,000, is our assumption, because neither filing states the extension fee. The 18-month total is $59,040 (our arithmetic), equal to about 13.1% a year.
Default interest changes the picture quickly. Sachem states a default rate of up to 24% per annum. On $300,000, 24% costs $6,000 a month and 13% costs $3,250, a difference of $2,750 a month (our arithmetic). The weighted average rate on Sachem’s book, which its table says “includes default interest,” was 12.56% at the end of 2023, 12.53% in 2024 and 13.10% in 2025, the last one above the 13% top of its fixed range. In the first half of 2026 it “modified the interest rate on five loans with an outstanding principal balance of $28.5 million” and says “The change in the rate was due to taking the loan off default rate.” the book average fell to 11.46% at June 30, 2026.
Sachem Capital: loan book and weighted average rate (includes default interest)
| Date | Loans held for investment | Gross principal | Weighted average rate | Loans originated in period |
|---|---|---|---|---|
| December 31, 2023 | 311 | $499,235,000 | 12.56% | not in our extract |
| December 31, 2024 | 157 | $376,991,000 | 12.53% | 41 |
| December 31, 2025 | 115 | $377,418,000 | 13.10% | 30 |
| June 30, 2026 | 100 | $337,557,000 | 11.46% | 11 (six months) |
2026: the lender says competition is cutting prices
The strongest signal in the filings is the lender’s own explanation of its income. Manhattan Bridge’s June 30, 2026 10-Q says revenue fell “primarily attributable to lower interest rates and origination fees charged to borrowers as a result of increased competition in the marketplace,” even though the number of loans and the capital deployed rose.
Manhattan Bridge Capital: first half of 2026 against first half of 2025
| Item | Six months to June 30, 2026 | Six months to June 30, 2025 | Change (our arithmetic) |
|---|---|---|---|
| Interest income from loans | $3,437,395 | $3,733,317 | -7.9% |
| Origination fees | $675,452 | $895,632 | -24.6% |
| Total revenue | $4,112,847 | $4,628,949 | -11.1% |
Fees fell three times as fast as interest. For a borrower that is a bargaining position: the lender’s top posted rate moved from 12.5% in the 10-K to 12% in the 10-Q, and its fee income per loan is falling. It is also consistent with the 2025 federal figures on our hard money loan rates page, where the median short-term investor rate fell. Sachem points the other way on supply: it originated 7 loans in the second quarter and 11 in the half, after 30 in 2025 and 41 in 2024, while its book shrank from 157 loans to 100 and it carried $95.8 million of non-accrual principal at June 30, 2026 (28.4% of the book, our arithmetic).
What happens when a short loan does not finish on time
The filings are candid about what a borrower faces when the exit slips.
- Extension is normal, and it costs. Manhattan Bridge’s 10-Q says it “generally grants loans for a term of one year” and may extend them if the borrower asks, and “Generally, borrowers are paying their interest, and the Company receives a fee in connection with the extension of the loans.” The same note lists $920,250 of loans originally due or committed in 2020 and $1,500,000 in 2022 still outstanding at June 30, 2026, which shows that a short-term loan can run for years when the lender agrees.
- The lender’s own bank limits extensions. An amendment to its credit line on March 24, 2026 limits “mortgage loans outstanding for more than 30 months to 17.5% of the total portfolio.” A lender with that cap has a reason to push long-outstanding loans to be repaid.
- Missed interest leads to a notice and a lawyer. In the quarter ended June 30, 2026, one Manhattan Bridge borrower with about $935,000 secured by two Florida properties stopped paying interest for about three months, did not respond to the notice of default, and the lender engaged Florida foreclosure counsel. The lender recorded no loss allowance because it believes the collateral is worth well above the loan.
- At Sachem the default path is long. At June 30, 2026, $80,335,000 of its $337,557,000 loans were 90 or more days past due, and in 2025 it moved 13 loans with $22,141,000 of principal into real estate owned.
- Personal guarantees are standard. Manhattan Bridge says each loan is “personally guaranteed by the principal(s) of the borrower,” so an LLC borrower does not shield the owner.
Institutional bridge loans, for contrast
Searchers for bridge loan rates often find numbers from a different market. Multifamily, single-family-rental and commercial bridge loans from balance-sheet lenders are floating-rate loans priced over SOFR; Arbor’s 386 bridge loans averaged about $29 million each (our arithmetic).
Bridge-type loan rates reported by three institutional lenders (Form 10-Q, June 30, 2026)
| Lender and loan type | Loans | Rate measure | June 30, 2026 | December 31, 2025 |
|---|---|---|---|---|
| Arbor Realty Trust, bridge loans (multifamily and single-family rental) | 386 ($11.32 billion) | Weighted average pay rate | 6.39% | 6.39% |
| Ladder Capital, first mortgage loans | $2.81 billion | Weighted average yield (includes rate floors) | 7.26% | 7.74% |
| Blackstone Mortgage Trust, loans receivable | 133 ($17.41 billion) | Weighted-average cash coupon, spread over floating benchmarks | +3.13% | +3.19% |
| Manhattan Bridge Capital (for comparison) | 88 ($60.7 million) | Weighted average contractual rate | not reported | 11.12% |
SOFR was 3.68% on June 30, 2026 and 3.89% on October 15, 2026 (New York Fed). Arbor’s 6.39% is about 2.71 points above the June 30 SOFR, an approximation because its loans may use other SOFR averages and floors (our arithmetic). At December 31, 2025, Manhattan Bridge’s average was 4.73 points above Arbor’s. The difference buys speed, small loans and underwriting of borrowers that banks and debt funds decline; it is not the same loan at a different price. Our commercial real estate loan rates page has the fixed-rate CMBS side, and our bridge loan page separates the homeowner bridge from the investor one.
What a borrower can do with this
- Ask for the whole price in writing. Rate, points at closing, extension fee and the default rate. The filings show lenders disclose all four in their own annual reports, so a quote that gives only a rate is incomplete.
- Ask what the extension costs before you sign. Neither lender states a number, so the fee is negotiated. Price a six-month overrun into the deal; a flip that runs long is the normal case, not the exception.
- Read the default clause. Sachem’s ceiling is 24% and Manhattan Bridge’s clause can use prime plus 3.0%. Ask when default interest starts, whether a late payment triggers it and whether it ends when you cure.
- Use the lender’s own words as leverage. One public lender says competition is pushing rates and fees down in 2026. Get two or three quotes and name the points and extension terms in each.
- Check the exit before the rate. If the refinance is a rental loan, see how to refinance a DSCR loan. For lenders compared side by side, see the best fix-and-flip lenders of 2026 and the hard money lenders page; for New York properties, hard money loans in New York shows who lends there.
The lenders in the box below make investor flip and rental loans. Kiavi pays us a referral fee when a loan closes through its button; the filings above are the same either way. More on each lender: Kiavi review, Lima One review, Visio Lending review.
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This is analysis of public documents, not investment, legal or tax advice.
FAQ
Sources: Manhattan Bridge Capital, Inc. (SEC CIK 1080340) Forms 10-K for 2021 to 2025 (accessions 0001493152-22-006642, 0001493152-23-007249, 0001493152-24-009478, 0001493152-25-009931, 0001493152-26-013241) and Form 10-Q for June 30, 2026 (0001493152-26-034411); Sachem Capital Corp. (CIK 1682220) Forms 10-K for 2024 and 2025 (0001410578-25-000587, 0001682220-26-000014) and Form 10-Q for June 30, 2026 (0001682220-26-000053); Arbor Realty Trust (0001253986-26-000048), Ladder Capital (0001577670-26-000040) and Blackstone Mortgage Trust (0001061630-26-000069) Forms 10-Q for June 30, 2026; SOFR from the Federal Reserve Bank of New York reference rates API, read October 19, 2026. Percentages marked as our arithmetic and the cost example are ours; the extension fee in the example is an assumption. This is analysis of public documents, not investment, legal or tax advice.
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