Hard money lenders are generally the most flexible on property type of any lending category. While conventional and even Non-QM lenders have strict property eligibility requirements, many hard money lenders will consider a wide range of collateral types.

Commonly Eligible Property Types

• Single family residences (including those in poor condition)
• 2–4 unit residential properties
• 5+ unit multifamily
• Mixed-use properties
• Small commercial properties
• Raw land and lots (with lower LTV)
• Industrial and warehouse (selected lenders)

Condition Requirements

Unlike conventional financing, hard money lenders can lend on properties that are uninhabitable, missing major systems (HVAC, plumbing, electrical), or in significant disrepair. This is essential for fix and flip investors who are acquiring distressed assets.

Geographic Considerations

Most California hard money lenders prefer properties in major metro areas — Los Angeles, Orange County, San Diego, the Inland Empire, and the Bay Area — where there is strong market liquidity. Rural or remote properties may face more scrutiny or lower LTV limits due to reduced marketability.

What Hard Money Lenders Avoid

• Properties with significant title issues
• Properties in active litigation
• Certain specialized use properties (churches, gas stations) without specific expertise