Asset-based · Fast close
Hard Money Loans in California
A hard money loan is a short-term, asset-based real estate loan secured by the property itself rather than your income or credit score. California real estate investors use hard money for fix-and-flips, fast closes, auction purchases, and bridge situations where a conventional loan is too slow. Save Financial arranges hard money loans from $100K to $10M, typically up to 65%–75% of value, with funding in as little as 5–10 days.
Quick Answer
A hard money loan is short-term real estate financing secured by the property rather than your income or credit. California investors use it to move fast — fix-and-flips, auctions, bridge deals, and cash-out on investment property. Expect roughly 9.5%–12% rates plus 1–3 points, up to 65%–75% of value, with funding in days, not weeks.
Quick reference: hard money at a glance
| Loan amounts | $100K – $10M |
| Loan-to-value | Up to 65%–75% of value (or ARV on rehab) |
| Rates (2026) | ~9.5% – 12%, plus 1–3 points |
| Term | 6 – 24 months (short-term) |
| Funding speed | As fast as 5–10 days |
| Qualifies on | The property & equity — not income |
| Best for | Investors, flips, bridge, fast closes |
What is a hard money loan in California?
A hard money loan is a short-term loan secured by real estate, funded by private investors or specialty lenders rather than banks. The lender's main question isn't "how much do you earn?" — it's "what is this property worth, and how much equity protects the loan?" That asset-first approach is what makes hard money fast and flexible, and why it's the go-to tool for California real estate investors who can't wait 30–45 days for a conventional loan to clear underwriting.
Because the loan is secured by the property and carries more risk for the lender, hard money costs more than a conventional mortgage — higher rates and upfront points — and the term is short. It's designed to be a temporary tool: buy fast, execute your plan, then sell or refinance into permanent financing.
Who is a hard money loan best for?
Hard money fits borrowers whose deal or situation doesn't suit a conventional lender:
- Fix-and-flip investors who need to buy and renovate quickly — often lending against the after-repair value. See our fix-and-flip loans.
- Buyers who need a fast close — auctions, off-market deals, or competitive offers where speed wins.
- Bridge situations — buying a new property before selling the old one. Compare with bridge loans.
- Investors scaling a portfolio who plan to refinance into a DSCR loan once the property is stabilized.
- Borrowers who can't document income conventionally but have strong equity or a strong asset. See also asset-based loans and non-QM.
Hard money rates, terms & costs in 2026
Hard money pricing reflects speed and risk. In the current California market, expect rates around 9.5%–12%, plus 1–3 points (origination fees paid at closing). Loan terms typically run 6 to 24 months, often interest-only, with a balloon payment at the end when you sell or refinance.
The biggest lever on your pricing is equity: most lenders cap the loan at 65%–75% of value (or of after-repair value on a rehab), so a larger down payment or more equity earns better terms. A clear, credible exit strategy — a sale or a pre-arranged refinance — also improves your rate. Use our mortgage calculator to model carrying costs, and check today's rates for conventional comparisons.
How the hard money process works
- Submit the deal. Property address, purchase price, rehab budget (if any), and your exit plan. No tax returns required to start.
- Valuation. The lender confirms the property value (and after-repair value for a flip) — this is the core of the decision.
- Term sheet. You receive loan amount, LTV, rate, points, and term, usually within a day or two.
- Fast underwriting. Title, insurance, and entity docs — far lighter than a conventional file.
- Fund & close. Often in 5–10 days. Rehab funds, if any, are released in draws as work is completed.
- Exit. Sell the property or refinance into long-term financing before the term ends.
Frequently asked questions about hard money loans in California
What is a hard money loan?
A hard money loan is a short-term real estate loan secured primarily by the property's value rather than the borrower's income or credit. It's funded by private investors or specialty lenders and is used by real estate investors who need speed or who can't qualify for conventional financing. Loan decisions hinge on the asset and the equity, not tax returns.
How fast can a hard money loan close in California?
Hard money loans can close far faster than conventional financing — often in 5 to 10 business days, and sometimes in as little as 48–72 hours for clean deals. Because qualification is based on the property and equity rather than full income underwriting, the process skips most of the documentation that slows a traditional mortgage.
What are hard money loan rates in California in 2026?
Hard money rates are higher than conventional because the loans are short-term and higher-risk for the lender. In 2026, California hard money rates typically run about 9.5%–12%, plus 1–3 points (origination fees) at closing. The exact rate depends on the property, your equity/down payment, experience, and exit strategy.
How much down payment do I need for a hard money loan?
Most California hard money lenders require 25%–35% down (or equivalent equity), lending up to roughly 65%–75% of the property value or after-repair value (ARV) on a rehab deal. More equity and a clear exit strategy generally earn better pricing.
Do hard money lenders check credit?
Credit matters less than with a conventional loan, but most lenders still pull it. A hard money loan is approved mainly on the property's value and your equity, so borrowers with credit issues can often still qualify — though stronger credit and experience can improve your rate and terms.
Can I use a hard money loan for a fix-and-flip?
Yes — fix-and-flip is one of the most common uses. Hard money lenders often lend against the after-repair value (ARV) and can include a rehab budget drawn in stages. Investors use the short-term loan to buy and renovate, then sell or refinance to pay it off. See our fix-and-flip program for rehab-specific structures.
What's the difference between hard money and a bridge loan?
They overlap heavily. A bridge loan is a short-term loan that 'bridges' you from one position to another (for example, buying before selling). Hard money is the asset-based, privately-funded category that bridge loans often fall under. In practice, a hard money loan is frequently used as a bridge; the right label depends on the lender and the use case.
Can I refinance out of a hard money loan?
Yes, and that's usually the plan. Hard money is short-term (often 6–24 months), so investors typically exit by selling the property or refinancing into longer-term financing — for a rental, that's often a DSCR loan that qualifies on the property's rental income. Save Financial can line up your exit refinance before the hard money loan even closes.
Have a deal that needs to close fast?
Tell us the property and your plan — we'll tell you the terms, usually within a day.
Related loan programs and guides
- Fix-and-Flip Loans — rehab financing against after-repair value.
- Bridge Loans — buy before you sell.
- DSCR Loans — the usual long-term exit for a rental.
- Asset-Based Loans — qualify on assets, not income.
- Investment Property Loans — conventional & portfolio options.
- Commercial Loans — for commercial real estate.