Lendia Mortgage — Specialty Loans

Hard Money Loans in California

Hard money loans are asset-based financing solutions secured by real property — where the loan decision is driven primarily by the value of the collateral rather than the borrower's income or credit profile. They are commonly used by California real estate investors, property flippers, and borrowers who need to close quickly or who do not qualify for conventional or Non-QM financing. At Lendia, we connect California borrowers with hard money lending solutions tailored to their investment timelines and property types.

Hard Money Loans At a Glance

Feature Details
Loan Basis Asset / collateral value (not borrower income)
Typical LTV Up to 65%–75% of property value
Credit Score Flexible — collateral is primary consideration
Closing Speed As fast as 5–10 business days
Loan Term 6 months – 3 years (short-term)
Typical Rate Range 9%–13%+ depending on risk and LTV
Points 2–4 points typical
Eligible Properties SFR, multi-unit, commercial, land (varies by lender)
Owner-Occupied Limited — most hard money is for investment properties
Eligible States California
Hard Money Loans — Full Q&A Library

What a hard money lender actually underwrites

Because the property is the main security, the questions center on the asset and the plan rather than on your pay stubs. Expect the conversation to cover four things:

  • Value: what the property is worth as-is, and how that value was determined.
  • Condition: whether the property is livable or needs work, since condition affects both value and eligibility.
  • Equity cushion: the gap between the loan and the value, which is why loan-to-value stays conservative.
  • Exit: how the loan gets repaid, usually a sale or a refinance into longer-term financing.

A worked cost example (illustrative example, not a quote)

The table above shows 65%–75% loan-to-value, 2–4 points, and rates of 9%–13%+. Here is how those ranges combine on round numbers, assuming a property worth $800,000 and a 70% loan-to-value:

  • Loan amount: $800,000 × 70% = $560,000
  • Points at 3% of the loan: $560,000 × 3% = $16,800
  • Interest at a hypothetical 10% for 6 months, if the full balance is outstanding the whole time: $560,000 × 10% × 6/12 = $28,000
  • Financing cost over six months, before appraisal, title and escrow: $16,800 + $28,000 = $44,800

Actual pricing varies by property and borrower profile, so treat this only as a way to see how quickly short-term costs add up against your expected profit or the value of the time saved.

Common mistakes

  • No second exit. If the first plan is a sale and the market is slow, you need a refinance option or extra time already priced in.
  • Ignoring holding costs. Property taxes, insurance, and utilities continue while the loan runs.
  • Comparing only the rate. Points, fees, and the term length change the real cost.
  • Using it when a standard loan would work. If you have time and the property qualifies, long-term financing is usually cheaper.

Frequently asked questions

Does a lower credit score mean I cannot borrow?

Credit is a secondary factor, but it is not ignored. Equity, property condition, and your plan carry more weight, and a stronger profile can improve the terms offered.

Can I live in the property?

Hard money is mostly for investment properties. Owner-occupied loans bring consumer-protection rules into play and are far more limited, so ask us before assuming it will work for a home you will occupy.

What happens when the term ends?

The balance comes due. Most borrowers repay from a sale or refinance, so start lining up the exit well before the maturity date.

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