The #1 California Hard Money Lender (2024)

(A+ Rated with BBB | Hundreds of Closed Loans | Direct Lender)

California Hard Money Lending Parameters (2024):

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California is a state situated on the Pacific Coast in the Western United States. It is the most populous state in the U.S., with approximately 39.2 million residents living across a vast area of around 163,696 square miles. California is also the most densely populated state in North America and the 34th most populous location in the world. The Greater Los Angeles and San Francisco Bay areas are respectively the second and fifth most populous urban regions in the nation, with more than 18.7 million residents in the former and over 9.6 million in the latter. Sacramento is the state capital, while Los Angeles is the most populous city in California.  With a $3.37 trillion gross state product (GSP) as of 2022, California has the largest economy of any state in the U.S.

Given the tremendous economic resources California employs it makes for one of the best real estate markets in the United States for real estate investors.

Some of the top real estate markets in California for real estate investors to consider are: 

1. San Francisco: The San Francisco Bay Area is known for its strong economy and high demand for housing. Some popular areas for investment include San Francisco, Oakland, and San Jose.

2. Los Angeles: Los Angeles is a large and diverse city with a wide range of investment opportunities, including residential and commercial properties.

3. San Diego: San Diego is a popular city with a strong tourism industry and a growing population, making it a good choice for investment in rental properties.

4. Sacramento: Sacramento is the capital city of California and is known for its affordable real estate prices and strong job market.

5. Orange County: Orange County is a wealthy region located south of Los Angeles, known for its high-end residential properties and luxury amenities.

6. San Jose: Located south of San Francisco, San Jose and Silicone Valley is a technology hub with a strong job market and high demand for housing.

 

#1 Hard Money Lender in California

Video on obtaining a California Hard Money Loan

Are you looking for a California private money lender who can offer low rates, close quickly, and not require any income docs or minimum credit score?

If so, Capital Funding Financial is the perfect hard money lender in California for you.

Capital Funding Financial specializes in asset based private money loans on non-owner occupied investment properties nationwide particularly in states such as California. Capital Funding Financial is backed by a Family Office with over 1,000 Single Family Developments built across the United States and over 250 Million deployed in loans.

If you are a real estate investor, developer, mortgage broker, or individual in California who needs a FAST, RELIABLE, & HONEST PARTNER for rental investment, commercial, or multi-family properties… Contact us today for a complimentary consultation.

We would like to provide you a pre-approval letter and soft quote for your particular scenario.

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FAQ’S

Or Call Us At 866-999-2011

What is a hard money loan?

A hard money loan is a loan based primarily on the value of the property and not on the income or credit of the borrower. Where asset based lenders aka hard money lenders in California focus primarily on the value of the asset used as collateral for the loan traditional banks and lenders focus chiefly on the credit and income of the borrower in making their decision on whether to extend credit. Furthermore, where traditional loans are generally for 15–30 year durations, hard money loans are used as a temporary alternative (1–3 years usually) as a bridge to acquire a property, rehab, stabilize it, and have it ready to be sold or refinanced. Hard money loans are provided to all asset classes ranging from commercial, retail, office, industrial, multi–family, or single family residential homes. Hard Money loans are similar to loans on chattel in other countries but in the US they are primarily associated with real estate loans based primarily on the asset value.

Why choose a California hard money loan over a conventional loan?

(1) Quick Funding– conventional banks take the absolute minimum of 30-45 days to finance an individual family residential loan and any where between 60–90 days to finance a commercial loan. Whereas, a California hard money loan by Capital Funding Financial is generally funded within 5-10 days. 

(2) The Property Needs Work– due to the conventional bank‘s very conservative underwriting guidelines, most will not lend on properties needing repair. However, a private money lender will be happy to loan on a property that either lacks cash flow or needs upgrades.

(3) Not based on credit or income– Traditional banks rely heavily on a borrower’s credit score, reported income, and the borrower’s ability to repay the debt. As a result, traditional banks turn down even strong income borrowers such as doctors, lawyers, and solicitors who have high incomes but also have a lot of debt. So, there is a key role that private lenders such as Capital Funding Financial play in lending to borrowers based on the asset value versus the debt to income of the individual borrower.

What type of properties qualify for Hard Money Loans?

• Single Family (Investment)
• Duplex, Triplex, Quadplex
• Large Developments
• Condo Conversions
• Multi-Family Properties
• Mixed-Use Properties
• Commercial Properties (Office, Retail, Industrial)

How long is the term of the hard money loan?

Typically hard money loans or bridge loans are 12 months. However, Capital Funding Financial offers hard money loans for up to 36 months (24 month term with up to a 12 month extension).

How fast can hard money loans close?

In some cases, Capital Funding Financial can close within 48 hours where title, valuation, and insurance are in place! The average turn around time is 3 to 7 business days.

How can I qualify for a hard money loan?

Simple… you just need equity in your property if you are refinancing OR if you are purchasing you will need to put down at least 15 – 20%. It is common practice to have a entity to purchase the property in to ensure it is for “business/commercial purpose.”

Are Hard Money Loans a Good Idea?

Yes… hard money loans allow real estate investors the flexibility to close quickly without having to go through a long and extensive underwriting process.

How do Hard Money Loans Work?

Hard money loans focus solely on the ratio of the loan amount to the value of the property. The higher the leverage the more the risk, whereas the lower the leverage the safer the transaction.

What is the average interest rate on hard money loans in California?

Most hard money loans range from 10% – 12% interest rates. However, Capital Funding Financial’s hard money loan rates in California start at 6.99%.

Do hard money lenders require a down payment?

On purchase transactions, yes. At least 10% is required.

Here is what our California customers say about us:

WHAT LOAN DOCUMENTATION DO YOU NEED TO QUALFY FOR A HARD MONEY LOAN IN CALIFORNIA?

For Purchase Transactions:

• Loan Application & Disclosures
• Driver’s License or Passport (ITIN number if you are a Foreign National)
• Purchase Agreement and any addendum(s)
• Proof of Earnest Money Deposit with check or wire receipt
• 2 Months Bank Statements to show the necessary cash to close and liquidity
• Entity Docs – Articles of organization, Operating agreement or Bylaws, EIN #, CDD Form, Corporate Resolution
• ACH Setup Form
• Title Commitment, Survey, HOA/Condo Questionnaire (if applicable), E&O, Wire Instructions, Confirmation of GAP Coverage, CPL, Draft Deed, HUD
• Evidence of Insurance – RCE/Insurable Value Required for Dwelling Coverage and 6 Months Loss of Rent Coverage
• Appraisal Payment (Appraisal or BPO to be Ordered by Capital Funding Financial) – If you need to rush we can waive this condition if the equity is there!
• Lease Agreement (if applicable)

For Refinance Transactions:

• Loan Application & Disclosures
• Driver’s License or Passport (ITIN number if you are a Foreign National)
• Payoff Statement or Mortgage Statement (if applicable)
• 1 Months Bank Statement to show current liquidity
• Entity Docs – Articles of organization, Operating agreement or Bylaws, EIN #, CDD Form, Corporate Resolution
• ACH Setup Form
• Title Commitment, Survey, HOA/Condo Questionnaire (if applicable), E&O, Wire Instructions, Confirmation of GAP Coverage, CPL, HUD
• Evidence of Insurance – RCE/Insurable Value Required for Dwelling Coverage and 6 Months Loss of Rent Coverage
• Appraisal Payment (Appraisal or BPO to be Ordered by Capital Funding Financial) – If you need to rush we can waive this condition if the equity is there!
• Lease Agreement (if applicable)

HOW LONG DOES THE HARD MONEY LOAN PROCESS TAKE TO CLOSE IN CALIFORNIA?

Once we have received the Appraisal, Title Commitment, and Insurance we will the loan to Final Underwriting. Upon review of the loan file by our Underwriter, we will submit to Legal for Loan Documents pending any Clear to Close Conditions. At Capital Funding Financial, we close loans in 1/3 of the time it takes to close a conventional mortgage loan! Our quick and easy loan process eliminates the stress and hassle that has plagued the mortgage lending industry for years. You will be able to leverage your capital, grow your portfolio, and enjoy better cash flow using Capital Funding Financials’ hard money loan program!

“Hard Money Lender California”

We provide hard money loans throughout the California Metropolitan Statistical Area (MSA) including but not limited to: Los Angeles, San Diego, San Jose, Sacramento, San Francisco, Santa Barbara.

If you’re in need of a hard money loan for a rehab project, fix & flip, or rental investment loan, please contact us today at 954-320-0242 or toll free at 1–866–695–0092 or visit Hard Money Loan for more info.