In 2026, California hard money rates run about 10–15% plus 1.5–4 points. Low-leverage deals (~55–60% LTV) price near 10–11%; high-leverage (~70–75% LTV) toward 13–15%. Experienced flippers often see 9–12%. Add points and the short term, and the effective annualized cost is ~15–25%. For comparison, conventional investment loans are ~6.5–7.5%. See the speed-vs-cost trade.
2026 California rate ranges
| Scenario | Typical rate* | Points* |
|---|---|---|
| Low leverage (~55–60% LTV) | ~10–11% | ~2 |
| Higher leverage (~70–75% LTV) | ~13–15% | ~3–4 |
| Experienced residential fix-and-flip | ~9–12% | 1.5–3 |
| Ground-up / commercial / higher-risk | ~12–15% | 2–4 |
| Bridge (stabilized) | ~10–11% | 1.5–3 |
| Conventional investment (reference) | ~6.5–7.5% | — |
*Illustrative for 2026; not an offer. Private hard money pricing varies by lender, deal, property, location, and borrower. Model it in the calculator →
What sets your rate
Loan-to-value (the biggest lever)
Lower LTV = lower rate. A 55–60% LTV deal prices meaningfully better than one pushed to 75%.
Your experience / track record
3–5 completed exits earn lower points and better rates; a first flip prices ~1–2% higher.
Property & location
Strong CA markets (LA, SF, SD) with a deep resale market price better than rural/tertiary areas.
Exit strategy strength
A clean, credible exit — quick sale or a lined-up DSCR refinance — lowers perceived risk.
Reserves
6–12 months of liquid reserves signals you can absorb overruns and can shave points.
Credit (secondary)
Often unchecked, but stronger credit helps — especially when the exit is a refinance.
The 2026 market backdrop
Hard money isn't tied 1:1 to the Fed, but the broader rate environment sets a floor for private capital costs. Two things stand out in 2026:
- Bridge pricing has eased — average bridge rates drifted from ~11.1% in late 2024 to roughly 10.4%, as liquidity returned and private capital competed harder.
- California stays competitive — the state's deep bench of private lenders, family offices, and funds keeps CA pricing below many other states. More lenders competing for your deal is pricing power in your pocket.
How to get the best pricing
| Lever | Effect on your rate |
|---|---|
| Lower your LTV | Biggest single reduction |
| Show completed deals | Lower points & rate |
| Keep 6–12 mo reserves | Can shave points |
| Pick a strong-market property | Better terms |
| Present a clean exit | Lowers perceived risk |
| Shop 3+ lenders | 2–4 points of spread |
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey. Last reviewed July 2, 2026.