How to Get a Hard Money Loan in California: Requirements, Documents & Approval
California hard money lenders approve deals on three criteria: equity (25–30% down on purchases, 65–75% max LTV on refinances), a credible exit strategy (sale or refinance), and fundable collateral. No tax returns, no income verification, and usually no minimum credit score. With a complete file, funding takes about 7–10 days. Start your file in 60 seconds — no SSN, no credit pull. New to hard money? Read the complete California hard money guide first.
Most pages about hard money tell you what it is. This one tells you how to actually get approved: the criteria underwriters check, every document you need, the day-by-day process, and — just as usefully — the reasons files get declined. Follow this and your loan funds in about a week; skip it and the "fast" loan drags for three.
The Three Criteria Every Lender Checks
1. Equity
The foundation of every approval. On a purchase, plan on 25–30% down. On a refinance, the loan caps at roughly 65–75% of appraised value. On a rehab, lenders advance up to about 70% of after-repair value (ARV), with renovation funds released in draws. Buying at a genuine discount effectively counts toward your equity — which is why auction, probate, and off-market deals qualify so readily.
2. Exit strategy
Hard money terms run 6–24 months with a balloon at maturity, so the underwriter's real question is "how does this loan get repaid?" Acceptable answers: a resale with realistic comps, a refinance into a DSCR loan or conventional program, or documented other funds. A written exit — even one paragraph — moves a file from maybe to yes.
3. Fundable collateral
California residential and commercial property in insurable condition, in a marketable location, with clean (or cleanable) title. Condition issues that kill bank loans — deferred maintenance, mid-renovation, vacancy — are fine; uninsurable structures and unresolvable title clouds are not.
Credit, Income, and What Lenders Skip
Here's what hard money underwriting does not require in most cases: tax returns, W-2s, pay stubs, employment verification, debt-to-income ratios, or a minimum FICO. Credit is pulled on some programs, but it prices the loan rather than approving it — a recent bankruptcy, foreclosure, or short sale rarely declines a file with strong equity. Most private lenders also don't report to consumer credit bureaus, so the loan typically won't appear on your credit report, though it records against the property as a trust deed.
If you want income-flexible financing on an owner-occupied home instead, that's a different regulatory lane — see our bank statement and non-QM programs.
The Complete Document Checklist
This is the whole file for a typical business-purpose hard money loan. Assemble it before you have a deal and you'll fund days faster:
| Document | Notes |
|---|---|
| Photo ID | Driver's license or passport for every guarantor |
| Entity documents | LLC operating agreement, articles, EIN letter — if vesting in an entity (standard for business-purpose loans) |
| Purchase contract or payoff statement | Contract for purchases; current lender payoff demand for refinances |
| Proof of funds to close | A recent statement showing down payment and closing costs |
| Rehab budget | Line-item scope of work — only for fix-and-flip or value-add deals |
| Schedule of real estate owned | One page listing properties, values, and loans — establishes experience and cross-collateral options |
| Insurance agent contact | So the binder can be ordered day one — the most common closing delay in California |
| Exit strategy | One written paragraph: sale comps, refinance plan, or other verified funds |
Notice what's absent: no tax returns, no income documentation. That's the entire point of asset-based lending.
Qualification Scenarios: Who Gets Approved
- Self-employed with heavy write-offs. Approved — income documentation isn't part of the file. This is the single most common hard money borrower profile.
- Recent bankruptcy or foreclosure. Approved with strong equity; expect pricing at the higher end of the range. Waiting periods that block conventional loans don't apply.
- LLC or corporation borrower. Approved — entity vesting is standard, with a personal guarantee typical.
- Foreign national. Approved through foreign-national programs on both hard money and DSCR; expect slightly lower max LTV.
- Thin cash but equity elsewhere. Approved via cross-collateralization — a second property's equity secures the loan and reduces cash to close.
- First-time flipper. Approvable — expect a modestly lower ARV advance than an experienced operator, and a fully documented rehab budget.
The Approval Process, Day by Day
Day 1–2 — Submit and compare. Address, purchase price or payoff, loan amount, exit plan. As a broker we circulate the file to multiple lenders and return competing term sheets within 24–48 hours — pick on rate, points, and certainty, not just rate.
Day 2–5 — Valuation, title, insurance. The lender orders an appraisal or broker price opinion, escrow opens, and the insurance binder is issued. Order insurance the same day you sign the term sheet.
Day 5–8 — Underwriting and documents. The underwriter verifies equity, exit, and title — no committee, no second underwrite — and loan documents are drawn.
Day 7–10 — Sign, fund, record. Signing with a mobile notary, wire to escrow, recording, keys or cash.
Why Deals Get Declined (It's Almost Never Credit)
- Thin equity. Requesting 85% of value has no cushion; no private lender wants that risk.
- Unrealistic exit. An ARV the comps don't support, or a refinance plan the property's income can't carry.
- Overstated rehab math. A $40k budget for a $150k scope tells the underwriter the whole file is optimistic.
- Uninsurable or unusual collateral. Fire-damaged structures without a build plan, unpermitted conversions, very rural land.
- Title problems. Unresolved liens, disputed ownership, open probate without authority to sell or borrow.
Every one of these is fixable before submission — price the deal at real comps, right-size the budget, clear title questions early — and a broker who has seen a thousand files will flag them on day one instead of day nine.
How to Fund Faster: Three Moves
- Build the closing package now. Everything in the checklist above, in one folder, before you have a deal.
- Order insurance at term sheet. Not at loan docs. This single habit saves 2–4 days in California.
- Use competition. Submitting to one direct lender means one appetite and one price. Competing term sheets through a licensed broker protect both your timeline and your pricing — verify any broker or lender in the California DRE license lookup before wiring a deposit. Save Financial: NMLS #377740, DRE #01875766 — licensing details.
Frequently Asked Questions
What credit score do I need?
Usually none. Pricing may adjust for credit events, but approval rests on equity and exit, not FICO. Post-bankruptcy and post-foreclosure borrowers close routinely.
Do hard money lenders verify income?
Generally no. The property's value, your equity, and the exit carry the underwriting — which is exactly why self-employed investors use hard money.
How much do I need down?
Plan on 25–30% on purchases. Cross-collateralizing equity in another property can reduce or eliminate cash to close. Full cost breakdown with a worked example is in the complete hard money guide.
Why do files get declined?
Deal reasons, not borrower reasons: thin equity, an unrealistic exit, overstated ARV, uninsurable condition, or title problems — all fixable before submission.
How fast can it close?
About 7–10 days with a complete file: term sheet in 24–48 hours, valuation and title by day 5, docs by day 8, funding by day 10.
Is commercial property different?
The criteria are the same — equity, exit, collateral — with LTVs of 55–70% and rent rolls in the file. See the commercial hard money guide.
Start Your File — Approved in 24–48 Hours
Send the deal — address, price, loan amount, exit — and receive competing term sheets. No SSN, no hard pull to start.
Apply in 60 Secondsor call 949-379-5320
Save Financial, Inc. · NMLS #377740 · DRE #01875766 · Equal Housing Opportunity. Rates, points, and terms shown are typical current-market ranges, vary by property, leverage, and borrower profile, and are subject to change without notice. This page is educational and is not an offer to lend or a loan commitment. All loans subject to credit and property approval. Office addresses are non-client-facing.