Hard Money Loans in California
Hard money loans are short-term, asset-based financing options secured by real estate. Private lenders or investment groups typically fund these loans, focusing on the property’s value rather than the borrower’s creditworthiness. These types of loans offer a faster path to financing when traditional bank loans fall short. For individuals and businesses navigating California’s competitive real estate market or those with urgent funding needs, quick hard money loans from Westpark Loans can bridge the gap.
We’ll begin by assessing the collateral property’s value to determine the maximum loan amount available. Once approved, our hard money loans can close within days. Borrowers receive funds quickly, enabling them to act on time-sensitive opportunities. If you’re in need of hard money lenders you can trust in California, look no further than Westpark Loans.
Hard Money Loan Features and Terms
| Feature | Hard Money Loans |
|---|---|
| Loan Type | Private financing |
| Lien Position | 1st or 2nd Position |
| Loan Term | 6-36 months |
| Interest Rates | Fixed Rates Available |
| Loan Amount | $100,000 – $5,000,000 |
| Loan to Value | 1st Position Up to 75% LTV (2nd Position up to 65% CLTV) |
| Credit Score | Flexible requirements |
| Occupancy | Primary Residence Business Purpose and Investment Properties |
| Property Types Allowed | Residential, Commercial |
| Prepayment Penalty | Flexible |
| Closing Time | 7-14 days |
What is a Hard Money Loan?
A hard money loan is a type of financing secured by real estate. Unlike traditional loans, hard money loans are typically funded by private investors or companies, allowing for more flexible lending criteria and faster approval times. For this reason, these loans are oftentimes called no-doc loans or private money loans.
These loans are ideal for short-term investment projects, such as property flips, bridge financing, ADU development, ground-up construction, or purchasing properties that need significant renovation. Hard money loans focus on the value of the property being used as collateral, making them accessible even for borrowers with less-than-perfect credit scores.
Hard Money Loan Features and Benefits
Fast Approval: Hard money loans offer the advantage of quick approval times, often within a few days. This speed allows investors to act swiftly on lucrative opportunities without the delays associated with traditional loans.
Flexible Terms: These private money loans come with flexible terms, including interest-only payments and short loan durations tailored to meet the specific needs of the borrower. This flexibility helps investors manage their cash flow effectively.
High Loan-to-Value Ratios: Borrowers can secure private money loans with high loan-to-value (LTV) ratios, often up to 75% of the property’s value. This provides substantial funding for investment projects, minimizing the upfront capital required.
Less Stringent Credit Requirements: Hard money loans focus more on the value of the property rather than the borrower’s credit history or income. This makes it easier for borrowers with poor credit or inconsistent income to qualify using limited to no income documentation.
Who Would Benefit from a Hard Money Loan?
Real Estate Investors: Real estate investors looking to quickly finance property acquisitions, renovations, construction, or fix and flip projects can benefit from hard money loans. The quick approval process allows them to capitalize on time-sensitive opportunities, ensuring they don’t miss out on profitable investments.
Small Business Owners: Small business owners who need to finance commercial real estate purchases or renovations can benefit from hard money loans. These bridge loans provide fast access to funds without the stringent requirements of traditional financing, allowing them to focus on growing their business.
Self-Employed Borrowers: Self-employed individuals often face challenges securing traditional loans due to variable income. Hard money bridge loans offer a flexible alternative, allowing self-employed borrowers to leverage their property for financing, enabling them to invest in real estate and expand their portfolios.
Hard Money Loan Products
ADU Loans
Blanket Loans
Bridge Loans
Fix and Flip Loans
Fix and Flip Loans
Ground Up Construction Loans
Ground Up Construction Loans
Hard Money Loan Example
Alejandro and Mei, a dynamic real estate investment duo, found a distressed property in San Diego with significant profit potential. To secure the property and begin renovations, they needed quick financing. They approached Westpark Loans for a hard money loan.
Property Details:
- Location: San Diego, California
- Purchase Price: $450,000
- Renovation Budget: $150,000
- After Repair Value (ARV): $750,000
Loan Details:
- Loan Amount: $450,000
- Loan Term: 12 months
- Interest Rate: Fixed
- LTV: 75%
With the help of Westpark Loans, Alejandro and Mei secured the hard money loan in just 10 days. They completed the renovations within six months and sold the property at the ARV, realizing a significant profit. The flexibility and speed of the hard money loan allowed them to capitalize on the investment opportunity without delay.
Frequently Asked Questions
Yes, hard money loans can finance both residential and commercial properties.
Typically, you’ll need property details, proof of ownership, and a loan application.
Some hard money loans may include prepayment penalties, but terms vary by lender.
Interest rates for hard money loans are generally higher than those for traditional loans.
Yes, hard money loans are often used to finance renovation and property improvement projects.
Client Testimonials
Exceptional Customer Service
Our experienced loan officers are available to assist you 24/7 via phone, text, or email. We are committed to providing exceptional service and guiding you through every step of the process. Our website is regularly updated with valuable resources, and we offer a monthly newsletter to keep you informed about the latest industry trends.
Get Started Today!
There’s no one-loan-fits-all solution. For more information on our All In One Loans, please contact our licensed Loan Specialists to find the best option for you.