Hard Money Loans in California

I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. When a bank says no or can’t move fast enough, hard money is often how my investor clients still get the deal done. Call (800) 239-1103.

A hard money loan is a short-term loan from a private lender, secured by real estate and approved mainly on the property’s value and your exit plan rather than your income or credit score. In California it’s used for fix-and-flips, fast purchases, bridge situations and properties banks won’t finance — at a higher cost than a conventional loan, typically for 6 to 24 months.

Hard money isn’t a long-term solution; it’s a tool for speed and flexibility. Used well, it lets you compete with cash buyers, buy a property that won’t qualify for a bank loan in its current condition, or buy before you’ve sold. Used badly — held too long, or with no realistic exit — it gets expensive fast. I shop your deal across private and wholesale lenders and help you plan the exit before you close.

How Hard Money Works

• Asset-based: the lender’s main protection is the equity in the property. Loan size is set by loan-to-value (LTV) on the current value, or on after-repair value (ARV) and loan-to-cost (LTC) for a renovation.
• Short term, interest-only: usually 6–24 months, with a balloon payoff at maturity.
• Fast: a clean file can often close in one to two weeks, because there’s no automated underwriting or agency guidelines to satisfy.
• Exit required: every lender wants to know how you’ll pay it off — sale, refinance into a long-term loan, or proceeds from another property.

Typical Hard Money Terms in 2026

These are general market ranges for California investment property; every lender prices differently and your term sheet is what counts.

Feature	Typical range
Interest rate	Roughly 9%–13%, interest-only; more for riskier deals or property types
Origination points	Commonly 1.5–3 points, sometimes more
Leverage	Often 65–75% of as-is value; fix-and-flip loans commonly up to 85–90% of cost, capped around 65–75% of ARV
Term	6–24 months; extensions usually cost extra
Closing	Often 1–2 weeks for a clean file
Credit	Often no strict minimum; credit affects pricing and leverage
Income documentation	Usually limited on business-purpose loans; you’ll still show funds to close and reserves

What drives your price: leverage (the biggest factor — more cash in the deal, better terms), your track record, property type (single-family prices best; land, mixed-use and commercial cost more), location and liquidity, and loan size.

Know your all-in cost. Example: $400,000 at 10.5% interest-only is $3,500 a month, or $21,000 over six months. Add 2 points ($8,000) plus appraisal, lender, title and escrow fees, and six months of financing costs roughly $30,000 or more. That’s fine on a deal with a real margin — and a problem if the project runs twice as long as planned.

Common Uses

• Fix and flip — buy, renovate with draws, sell. See fix-and-flip loans.
• Buy, renovate, rent, refinance — acquire and stabilize a rental, then refinance into a 30-year DSCR loan.
• Bridge — buy the next property before selling the current one, or carry a property that doesn’t yet qualify for permanent financing. See bridge loans.
• Distressed or unfinanceable condition — no working kitchen, major deferred maintenance, unpermitted work being legalized.
• Auctions, REOs, probate and off-market deals where the seller won’t wait 30–45 days.
• Investors past agency limits — Fannie Mae generally caps borrowers at 10 financed properties for second home and investment loans; private and portfolio lenders don’t.
• Land, construction and commercial — short-term private financing where banks are slow or unwilling. See land loans and construction loans.

“No Income” Hard Money: What It Really Means

For business-purpose loans on investment property, many private lenders don’t ask for tax returns or calculate debt-to-income. Their security is the property: if the loan is well inside the property’s value, the equity protects them. That’s why hard money works for self-employed investors whose returns understate their income, retirees who are asset-rich and income-light, investors with complex entity income, and foreign investors without U.S. credit.

“No income docs” doesn’t mean no underwriting. Expect lenders to verify:

• Identity, and entity documents if you’re borrowing through an LLC (a personal guarantee is standard)
• Funds for the down payment, closing costs and reserves
• Credit history — not always for a minimum score, but for red flags like recent foreclosures, bankruptcies or unpaid liens
• The property’s value (appraisal or broker price opinion), title and insurance
• A believable exit plan

An important limit: a loan secured by your own home is consumer credit, and federal ability-to-repay rules require the lender to verify you can afford it — even a private lender. “No income” hard money is for investment and business-purpose loans. If you need to borrow against your residence without tax returns, look at bank statement or other non-QM loans instead.

Hard Money vs. Other Investor Loans

	Hard money	DSCR loan	Bank statement loan	Conventional investment loan
Term	6–24 months	Usually 30 years	Usually 30 years	15–30 years
Qualifies on	Property value and exit	Property’s rent vs. payment	Your bank deposits	Tax returns, credit, DTI
Speed	Fastest	Weeks	Weeks	Typically 30+ days
Property condition	Distressed OK	Rent-ready	Livable	Livable, meets agency standards
Cost	Highest	Moderate	Moderate	Lowest
Best for	Speed, rehab, bridge	Long-term rentals	Self-employed buyers	Clean-documentation holds

The common playbook uses more than one: buy and renovate with hard money, then refinance into a DSCR or conventional loan once the property is rented and appraises at its new value. Holding hard money long-term is almost never the right answer. For the self-employed, compare with bank statement loans before assuming you need private money.

How to Close Fast

A 7-day close is possible for a clean deal; two weeks is more typical. What speeds it up:

1. Send a complete deal package on day one: address, purchase contract, price, ARV with comps, rehab budget if any, exit plan and proof of funds.
2. Review and sign the term sheet quickly — and read the extension fees, prepayment or minimum-interest terms, draw process and default interest.
3. Get valuation ordered immediately. Some lenders use a broker price opinion for speed; others require a full appraisal. Ask which.
4. Open title early. Liens, probate issues or missing signatures are the most common reason a fast close slips — order a preliminary title report as soon as you’re in contract.
5. Answer conditions the same day and have funds ready to wire.

California Markets

• Los Angeles County: high values and a steady supply of probate, distressed and value-add properties — Pasadena and Glendale bungalows, Long Beach and Torrance small multifamily, ADU and repositioning plays in the San Fernando Valley.
• Orange County: flips in Anaheim, Santa Ana and Garden Grove; bridge financing for high-value transitions in coastal cities like Newport Beach and Laguna Beach.
• Riverside County and the Inland Empire: lower entry prices and high flip volume in Riverside, Corona, Temecula, Murrieta, Moreno Valley and Hemet.
• Bay Area, San Diego and Sacramento: same structure, with local permitting and valuation differences.

Frequently Asked Questions

How fast can I close a hard money loan in California?

Often one to two weeks, and sometimes about a week for a clean purchase with clear title, a quick valuation and a complete package. Title problems, appraisal disputes and missing documents are what slow it down.

What credit score do I need for a hard money loan?

Many private lenders have no strict minimum because the property secures the loan. Credit still affects your rate and leverage, and lenders look for red flags like recent foreclosures, bankruptcies or tax liens. More cash in the deal can offset weaker credit.

What are hard money rates in California?

In 2026 they generally run from about 9% to 13% interest-only, plus 1.5–3 origination points, depending on leverage, experience, property type and loan size. Always compare the total cost — points, fees and interest for your realistic hold period — not just the rate.

Can I get a hard money loan with no income verification?

For business-purpose loans on investment property, often yes: lenders focus on the property’s value, your down payment and reserves, and your exit plan instead of tax returns. A loan secured by your own home is different — federal ability-to-repay rules require income verification, so consider a bank statement or other non-QM loan.

What’s the difference between hard money and a DSCR loan?

Hard money is short-term (usually 6–24 months) for acquisition, renovation and bridge situations. A DSCR loan is long-term financing, typically 30 years, that qualifies a rental on its rent versus the payment. Many investors buy and renovate with hard money, then refinance into a DSCR loan once the property is rented.

What’s the difference between hard money and a bridge loan?

They overlap. “Bridge loan” describes the purpose — short-term financing between two events, like buying before selling or carrying a property until it qualifies for permanent financing. “Hard money” describes the source and style — private, asset-based lending. Many bridge loans are hard money loans, and borrowers with strong equity and credit can sometimes get bridge financing at lower cost.

Related Resources

• Fix-and-Flip Loans
• Bridge Loans
• DSCR Loans
• Bank Statement Loans
• Commercial Real Estate Loans
• Non-QM Mortgages
• 25 Years of Hard Loans: Getting to Yes

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