I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
The average hard money loan rate in California in 2026 is approximately 10.38% — but what you actually pay depends heavily on where you’re borrowing, what you’re buying, and how much experience you have. This guide breaks down current rates by market and deal type so you can underwrite accurately. See also: California Hard Money Loans and Hard Money vs. Conventional Investment Loan.
California Hard Money Rates by Market (2026)
| Market | Rate Range | Notes |
|---|---|---|
| Orange County | 8.99% – 11.99% | High-value market, favorable LTVs |
| Los Angeles | 9.50% – 12.99% | Highest deal volume in CA |
| Riverside / Inland Empire | 9.50% – 13.00% | Highest flip volume in CA |
| San Diego | 9.00% – 12.50% | Strong coastal demand |
| Bay Area | 8.99% – 12.00% | High ARVs support lower rates |
| Sacramento / Central Valley | 10.00% – 13.00% | More rate-sensitive market |
What Drives Your Hard Money Rate?
Loan-to-Value (LTV) is the biggest rate driver. Lenders charge more when they’re taking on more risk. A loan at 50% LTV might price at 8.99%; the same deal at 75% LTV could price at 11.5%. The less you borrow relative to the property value, the better your rate.
Borrower experience matters more than people expect. Experienced flippers with documented track records — 5+ completed flips in the past two years — typically access rates 1–2 points lower than first-timers.
Property type affects risk. Single-family residences get the best rates. Multifamily, mixed-use, commercial, and vacant land all price higher due to increased lender risk and exit complexity.
Loan size matters too. Larger loans ($500,000+) often price better than small loans under $200,000, because lenders make the same underwriting investment regardless of loan size.
Points and Fees: The Full Cost Picture
Hard money rates aren’t the only cost. Origination points typically run 1.5–3 points (1 point = 1% of the loan amount). A $500,000 loan at 2 points costs $10,000 upfront. Add underwriting fees ($500–$1,500), appraisal ($400–$800), and title/escrow, and your total closing costs on a hard money loan might run $12,000–$18,000.
For a 6-month flip, the all-in cost of a 10.5% hard money loan on $400,000 — including 2 points — works out to roughly $21,000–$23,000. If your projected profit is $80,000, that’s still a strong return. The math only breaks down if you underestimate rehab costs or hold the property too long.
Hard Money vs. DSCR Loans: Which Is Cheaper?
For rental properties, DSCR loans (30-year terms, rates around 7–8.5% in 2026) are far cheaper than hard money over the long run. Hard money is a short-term tool — use it to acquire and renovate, then refinance into a DSCR loan once the property is stabilized and tenanted. Using hard money as permanent financing is expensive; using it as a bridge to a DSCR loan is smart.
Frequently Asked Questions
What is the average hard money loan rate in California in 2026?
Average hard money rates in California in 2026 run approximately 9–13%, depending on market, LTV, borrower experience, and property type. The Los Angeles market average in Q2 2026 was around 10.38%. Bay Area and Orange County tend to price at the lower end of that range (8.99–12%) because high ARVs reduce lender risk. Riverside/Inland Empire and Sacramento/Central Valley tend to price at the higher end (10–13%). Experienced flippers with 5+ documented projects can often access rates 1–2 points below the market average for first-timers. I’ll give you a same-day rate quote if you tell me the property address, purchase price, estimated ARV, and exit strategy.
How many points do hard money lenders charge in California?
Origination points on hard money loans in California typically run 1.5–3 points (1 point = 1% of the loan amount). On a $400,000 loan at 2 points, that’s $8,000 upfront. Add underwriting fees ($500–$1,500), appraisal ($400–$800), and title/escrow costs, and total closing costs on a California hard money loan typically run $12,000–$18,000 for a mid-sized deal. For a 6-month flip, this is a manageable cost when the gross margin is $80,000+. The per-deal cost only becomes a problem when holds run long and you’re paying a high rate for 12–18 months instead of the projected 6.
How do I get a lower hard money rate as a California investor?
Four things lower your hard money rate: lower LTV (putting more down reduces lender risk and earns a rate discount), documented experience (5+ completed flips gets you to the lower end of the rate range), deal quality (strong ARV, clear exit strategy, realistic rehab budget makes the file more attractive to lenders), and loan size (larger loans above $500,000 often price better than small deals). As a mortgage broker, I access 40+ wholesale lenders, which means I can shop your specific deal to multiple hard money programs and find the most competitive rate for your situation — not just accept whatever one lender offers.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
