When it comes to borrowing money through a private lender, doing your homework is essential. Kennedy Funding has been a well-known name in the hard money lending world for years. But if you’ve searched online, you’ve probably come across the term “Kennedy Funding complaints” more than once. In this article, we’ll break down everything you need to know — in simple words — to help you understand what people are saying, whether the company is trustworthy, and how to protect yourself when looking for a loan.
What Is Kennedy Funding and What Do They Do?
Kennedy Funding is a private lending company based in Englewood Cliffs, New Jersey. They specialize in hard money loans, which means they offer fast, short-term loans based mainly on the value of real estate rather than your credit score. They’ve been in business for over 30 years and claim to close loans quickly, sometimes in just a few days. That’s why some people turn to them when banks say no.
They focus on lending for commercial real estate deals, land development, and international projects. Unlike traditional lenders, Kennedy Funding often funds risky or complex deals, like purchasing undeveloped land, foreign real estate, or projects where traditional banks don’t want to take the risk.
Their services include:
- Bridge loans
- Construction loans
- Foreclosure bailouts
- Land loans (even raw land)
- International funding
Their pitch is simple: if you have real estate to offer as collateral, they’ll try to work with you — even if other lenders won’t.
What Are People Complaining About Kennedy Funding?
Just like any business that’s been around for decades, Kennedy Funding has received its fair share of customer complaints. The most common complaints include:
- High-interest rates
- Unexpected fees at closing
- Delayed or canceled funding
- Lack of transparency
- Aggressive loan terms
Many borrowers feel that the company’s process is not as straightforward as advertised. While Kennedy Funding markets itself as a fast and flexible solution, some customers have said they were surprised by the final loan terms. Others felt they were misled about how quickly funds would be delivered or faced unexpected changes during the closing process.
These issues are important to consider, especially for borrowers who are already in a stressful financial situation and need funds quickly.
Is Kennedy Funding a Legit Company or a Scam?
To be clear: Kennedy Funding is a legitimate company. They have a real office, a long history, and have closed millions in real estate loans. However, just because a company is legitimate doesn’t mean every customer walks away satisfied.
There are plenty of online reviews — both positive and negative. Some borrowers say Kennedy Funding saved their deals when no one else would help. Others say they felt taken advantage of by hidden fees or unclear terms. Some even describe feeling “trapped” after starting the loan process.
When people ask if Kennedy Funding is a scam, what they’re often really asking is: “Did they treat their borrowers fairly?” The answer varies depending on who you ask.
Real Reviews From Borrowers
If you read actual borrower stories on forums like BiggerPockets, Reddit, or Trustpilot, you’ll see a mixed bag. Here are a few real sentiments borrowers have shared:
- “They approved my deal quickly and got it done when no one else could.”
- “They promised funding in a week, but it took over a month — by then, I lost my deal.”
- “They added $50,000 in closing costs I didn’t expect.”
- “Very responsive team but interest was higher than expected.”
These experiences show that while Kennedy Funding delivers for some people, it’s not always a smooth or affordable ride for others.
Complaints About Interest Rates
Interest rates are one of the top complaints people mention. Kennedy Funding offers hard money loans, which are always going to be more expensive than traditional bank loans. It’s not uncommon to see rates between 10% to 15%, and sometimes even higher, depending on the risk of the deal.
Several borrowers have claimed that they were promised a lower rate at the beginning, only to receive a much higher rate when it came time to close. Others have complained about origination fees, legal fees, wire fees, and “processing” fees that weren’t clearly explained upfront.
If you’re not reading every page of the contract, you could be in for a surprise.
Were There Any Legal Problems?
There haven’t been any major lawsuits proving that Kennedy Funding committed fraud or operated illegally. However, like many private lenders, they have faced disputes with borrowers, including some legal actions for breach of contract, foreclosure, or disagreements over loan terms.
Some of these cases are simply business disagreements, but they highlight the need to carefully read and understand the terms before signing anything.
Why Do Some People Still Choose Kennedy Funding?
Despite the complaints, people still go to Kennedy Funding because they offer something many lenders don’t: fast cash with minimal paperwork.
If you’ve ever tried to get a loan from a traditional bank, you know how long and difficult the process can be. Kennedy Funding can close deals in days — and for people with poor credit, complicated situations, or foreign investments, that’s a huge advantage.
For example:
- A developer needing to close on land in Latin America
- An investor with poor credit needing to bail out a property facing foreclosure
- A business owner who needs fast capital and owns commercial real estate
In these cases, borrowers may be willing to accept higher rates or less favorable terms because they don’t have better options.
What Are the Warning Signs to Watch Out For?
Whether you’re working with Kennedy Funding or another private lender, it’s important to look out for warning signs that could signal a bad deal. These include:
- Unclear fees or vague explanations
- Pressure to sign quickly
- Sudden changes in loan terms
- Promises that seem too good to be true
- Lack of transparency about the timeline or process
Always ask questions and don’t be afraid to walk away if things don’t feel right.
How to Spot a Hard Money Loan Scam
Hard money loans can be helpful, but the industry also attracts scammers. If you’re not careful, you might end up losing your property or paying way more than expected.
Check for Hidden Fees
Always ask for a full breakdown of all fees before signing anything. Some shady lenders will bury charges deep in the fine print, then spring them on you during closing. Ask questions like:
- What’s the origination fee?
- Are there document prep or underwriting fees?
- What are the prepayment penalties?
Make sure everything is written down clearly — and get it in advance.
Don’t Trust “Too Good to Be True” Offers
If someone says, “We can get you a $5 million loan in 48 hours with no documents,” that’s a red flag. Hard money loans may be quicker than bank loans, but no real lender hands out millions without checking details.
Kennedy Funding does promote fast closings, but even they require appraisals, property evaluations, and legal documentation. If someone promises you otherwise, it’s likely a scam.
How Kennedy Funding Compares to Other Private Lenders
Compared to other hard money lenders like LendingHome, Anchor Loans, or Do Hard Money, Kennedy Funding is considered one of the more aggressive lenders in terms of the types of deals they’re willing to take on. However, their fees and interest rates may also be higher.
Other lenders may offer more borrower-friendly terms but might reject deals that Kennedy Funding would approve. In short:
- Kennedy Funding: Higher risk tolerance, faster closings, higher fees
- Other Lenders: Stricter requirements, slower, but potentially cheaper
Depending on your needs, Kennedy Funding might be your only option — or your most expensive one.
What You Should Ask Before Taking a Loan
Before borrowing from any private lender, especially one like Kennedy Funding, ask the following:
- What’s the exact interest rate and APR?
- Are there any upfront fees?
- What are the total costs at closing?
- Are there penalties for paying early?
- Can I see the full term sheet now?
- What happens if I miss a payment?
Don’t be afraid to get a second opinion from a lawyer or real estate expert before signing anything.
The Bottom Line
Kennedy Funding is not a scam, but it’s not a perfect lender either. They fill an important gap in the lending market by helping borrowers with complex, risky, or time-sensitive deals. However, their loans often come with high costs, strict terms, and limited transparency — which is why the phrase “Kennedy Funding complaints” shows up often in search engines.
If you’re considering working with Kennedy Funding or any hard money lender, do your homework, read the fine print, and ask tough questions. Make sure you fully understand what you’re getting into before you sign.
