Hard money loans are the most flexible loan type when it comes to credit requirements. Because the loan is primarily collateral-based, credit score is a secondary consideration — not the primary driver of the lending decision.

General Credit Requirements

Most hard money lenders in California work with borrowers across a wide credit spectrum, including those with:

• Recent bankruptcies (sometimes with no waiting period)
• Prior foreclosures or short sales
• Low FICO scores (some lenders will lend at 500 or even without a minimum)
• No established U.S. credit history (foreign nationals)
• Multiple derogatory marks on credit

What Matters More Than Credit

Hard money lenders focus primarily on:

• The value of the property (collateral)
• The LTV ratio (how much equity cushion exists)
• The borrower’s experience with real estate investment
• The exit strategy (how the loan will be repaid)
• The location and marketability of the property

Higher Credit = Better Terms

While hard money lenders will work with lower credit scores, a borrower with a stronger credit profile may still receive better terms — a slightly lower rate or higher LTV. Credit is not irrelevant; it just is not the gating factor it is in conventional lending.