In 2026, California hard money loans generally require: 65–75% of as-is value (or 70–75% of ARV on rehabs), 1.5–4 points, rates of ~9.5–15%, 6–24-month interest-only terms with a balloon, liquid reserves, and a clear exit strategy. Credit is often flexible or unchecked. Investment properties only. Figures are illustrative for 2026.
The core numbers (2026)
| Requirement | Typical 2026 range* |
|---|---|
| LTV (as-is value) | 65–75% (up to 80% experienced) |
| LTV (after-repair value / ARV) | 70–75% of ARV |
| LTC (loan-to-cost, rehab) | Up to 85–90% of total project |
| Interest rate | ~9.5–15% (CA often lower vs other states) |
| Points (origination) | 1.5–4 (most 2–3) |
| Term | 6–24 months (12 most common) |
| Payment structure | Interest-only + balloon at maturity |
| Credit | Often none; some 600–620+ floor |
| Reserves | Liquid funds for payments & contingencies |
| Occupancy | Investment / non-owner-occupied only |
*Illustrative for 2026; set by individual private lenders and vary by property, location, experience, and deal. Not an offer. See how rates price →
As-is value vs ARV vs LTC — the three numbers
Hard money underwriting turns on which value the loan is measured against:
- As-is value — what the property is worth today. A straight bridge or stabilized deal is capped at ~65–75% of this.
- ARV (after-repair value) — what it'll be worth once renovated, set by an appraisal or broker price opinion (BPO). Rehab loans cap at ~70–75% of ARV.
- LTC (loan-to-cost) — the share of your total acquisition + rehab budget the lender funds, up to ~85–90% — as long as the total still fits under the ARV cap.
Documents you actually need
| Document | Why |
|---|---|
| Purchase contract / property details | Defines the deal & as-is value |
| Scope of work + renovation budget | Sets ARV and the draw schedule |
| Proof of funds / liquid reserves | Down payment, payments, contingencies |
| Borrower resume / deal history | Experience tier & pricing |
| Entity docs (LLC / corp) | Most hard money vests in an entity |
| Appraisal or BPO | Confirms as-is value and ARV |
Notably absent: tax returns, W-2s, pay stubs, DTI. That's why hard money can fund in 5–14 days when a bank takes 30–45. See the full process.
The exit-strategy requirement
This is the one requirement no lender waives. Because the loan is short and interest-only with a balloon, you must show a credible path to repayment before funding:
Sell after renovation
The classic fix-and-flip exit — repay from sale proceeds.
Refinance into permanent financing
Stabilize and refi into a long-term loan — commonly a DSCR loan for a rental hold.
Take out a conventional loan already in process
Bridge the gap when a conventional approval couldn't meet the acquisition timeline.
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.