Investor Loans · 6 min read
How to Get a Hard Money Loan in California (2026)
To get a hard money loan in California, you submit the property and your exit plan to a private/specialty lender, who lends against the asset's value rather than your income or credit. Expect to bring 25–35% equity (up to 65–75% LTV), pay roughly 9.5–12% plus 1–3 points, and close in as little as 5–10 days. Hard money is short-term. You exit by selling the property or refinancing into long-term financing.
When does a hard money loan make sense?
Hard money is the right tool when speed or flexibility matters more than getting the lowest rate: fix-and-flips, auction purchases, competitive offers needing a fast close, bridge situations, or when your income is hard to document conventionally. Because approval rests on the property and equity, it closes far faster than a bank loan.
What do you need to qualify?
Far less than a conventional loan. The core requirements: a property with sufficient equity (you'll bring 25–35% down or hold that equity), a clear and credible exit strategy, and basic entity/title/insurance documents. Credit is checked but matters less than the asset. No tax returns are required to start. See the full hard money loan program.
What are hard money rates and terms in 2026?
| Rate | ~9.5%–12% + 1–3 points |
| LTV | Up to 65–75% of value (or ARV on a rehab) |
| Term | 6–24 months, often interest-only |
| Funding speed | As fast as 5–10 days |
How do you exit a hard money loan?
Hard money is temporary by design. The two exits: sell the property (typical for a flip), or refinance into long-term financing. For a rental, that long-term takeout is usually a DSCR loan that qualifies on rental income. Smart investors line up the exit before the hard money loan even closes, Save Financial can arrange both.
Worked example: the true cost of a 9-month flip loan
Points and interest add up fast on short-term money. Here is an illustrative $600,000 interest-only loan at an example 11% rate with 2 points. This is not a quote.
| Item | Amount | Notes |
|---|---|---|
| Points (2%) | $12,000 | Paid at closing |
| Monthly interest | $5,500 | Interest-only |
| Interest over 9 months | $49,500 | Before any extension |
| Total financing cost | $61,500 | Plus title, escrow and other fees |
Plug your own deal into the fix-and-flip calculator to see whether the profit survives the financing cost.
Documents to have ready
- Signed purchase contract or current property details
- Scope of work and rehab budget, line by line
- Comparable sales that support your after-repair value
- LLC or entity documents, if you buy in an entity
- Proof of funds for the down payment, rehab share and reserves
- A short list of past projects, if you have any
A complete package is the single biggest reason a hard money loan closes in days instead of weeks. First-time flippers can still qualify, but expect a lender to want more equity and a tighter budget.
Read the term sheet for these costs
- Extension fees if the project runs past the term
- Minimum interest clauses if you pay off early
- Draw and inspection fees on rehab funds
- Default rate if a payment is late
If you plan to keep the property, line up the long-term DSCR refinance before you close. Rates change daily, so for an accurate quote call 949-379-5320 (Newport Beach) or 310-759-4757 (Marina del Rey).
Frequently asked questions
How fast can I get a hard money loan in California?
Often 5–10 business days, and sometimes 48–72 hours for a clean deal. Because qualification is based on the property and equity rather than full income underwriting, the process skips most of what slows a conventional mortgage.
Do hard money lenders check credit?
Most pull credit, but it carries far less weight than with a conventional loan. Approval rests mainly on the property's value and your equity, so borrowers with credit issues can often still qualify, though stronger credit can improve your rate.
How much money do I need to bring to a hard money deal?
Plan on 25–35% of the property value as a down payment or equity, since most lenders cap the loan at 65–75% LTV (or of after-repair value on a rehab). More equity generally means better pricing.
Can I use a hard money loan to buy a primary residence?
Hard money is primarily for investment and business-purpose loans. Owner-occupied hard money exists but carries extra consumer regulations and is far less common. For a primary home, conventional, FHA, or bank statement loans are usually the better route.
What is a hard money extension fee?
It is a charge, usually a percentage of the loan, to extend the term if your flip or rehab is not finished in time. Ask for the extension terms in writing before you sign.
Can I refinance out of hard money into a DSCR loan after the rehab?
Often yes. Many investors refinance into a DSCR loan once the property is rented. Lenders may require some time of ownership before they will use the new appraised value, so confirm the seasoning rule early.
About this guide: Save Financial is a California-licensed mortgage broker (NMLS #377740, DRE #01875766) serving all 58 counties. Get a custom quote or call 949-379-5320.