California Hard Money Loans
Close in Days, Not Months

A hard money loan is a short-term, asset-based loan secured by real property. Unlike conventional mortgages, hard money lenders focus primarily on the property's value and the borrower's exit strategy rather than income, employment, or credit history. These loans are funded by private investors or lending companies and are commonly used by real estate investors for fix-and-flip projects, bridge financing, and deals that require fast closing.

Most hard money lenders in California can provide proof of funds within 24 hours and close in 7-10 business days. Some lenders offer expedited closings in as few as 3-5 days for experienced borrowers with clean deals. The speed comes from asset-based underwriting — since approval is based on the property, there's no need for income verification, employment checks, or lengthy document review.

There is no strict minimum credit score for most hard money loans. Many lenders work with scores as low as 550, and some don't pull credit at all. However, borrowers with higher credit scores (680+) typically receive better rates and terms. The primary qualification factors are the property's value (LTV), the borrower's experience, the exit strategy, and available cash reserves.

Hard money loans in California typically carry interest rates of 9.99% to 13.99% with 1-3 origination points. For a $500,000 loan at 11% with 2 points, you'd pay $10,000 in points at closing plus approximately $4,583/month in interest-only payments. While more expensive than conventional loans, the speed, flexibility, and ability to close deals that banks won't fund often make the higher cost worthwhile for investors.

Hard money loans are broader — any asset-based, short-term real estate loan funded by private capital. Bridge loans are a specific type that 'bridges' a gap between transactions (like buying before selling, or acquiring before refinancing). All bridge loans can be hard money loans, but not all hard money loans are bridges. Hard money also covers fix-and-flip, construction, and other short-term investment strategies.

Hard money loans for primary residences are rare and heavily regulated in California under consumer protection laws (Dodd-Frank, TRID). Most hard money lenders only fund investment properties, second homes, or commercial properties. If you need fast financing for a primary residence, consider a non-QM lender or bank statement loan instead.

Almost any property type qualifies: single-family residences, multifamily (2-100+ units), mixed-use, commercial buildings, retail, industrial, raw land, and new construction. Properties in any condition are eligible — including distressed, fire-damaged, vacant, or those requiring major renovation. The key factor is the property's after-repair value (ARV) or as-is value relative to the loan amount.

Hard money loans are designed to be short-term (6-36 months) with clear exit strategies: (1) Sell the property after renovation for fix-and-flip projects, (2) Refinance into a long-term DSCR or conventional loan after stabilizing the property, (3) Pay off with proceeds from another property sale or business income. Lenders evaluate your exit strategy as a key part of the approval process.