Hard money loans carry significantly higher rates and fees than conventional or Non-QM financing — a reflection of the speed, flexibility, and risk tolerance they offer. Here is what California borrowers should expect.

Interest Rates

Hard money rates in California typically range from 9% to 13%+ depending on:

• LTV ratio — lower LTV generally means a lower rate
• Property type and condition
• Borrower experience and credit
• Loan amount and term
• Current market conditions

Points (Origination Fees)

Hard money lenders typically charge 2–4 points (1 point = 1% of the loan amount) as an origination fee. On a $500,000 loan, 3 points = $15,000. Points are typically paid at closing.

Other Fees

• Underwriting/processing fees: $500–$2,000 typically
• Appraisal or BPO fee
• Title and escrow fees
• Draw fees (for construction or rehab loans where funds are disbursed in phases)
• Extension fees if the loan term is extended past the original maturity date

Why the Cost Is Often Worth It

On a 6–12 month fix and flip project, the higher rate has limited impact on total cost because the loan is outstanding for a short period. The bigger risk is missing a deal entirely by trying to use slower, cheaper financing. Speed and access often outweigh cost.