Asset-based · Fast close
Hard Money Loans in California
By Mike Basti, President and Mortgage Broker · Individual NMLS #322904 · Updated
A hard money loan is a short-term, asset-based real estate loan secured by the property itself rather than your income or credit score. California real estate investors use hard money for fix-and-flips, fast closes, auction purchases, and bridge situations where a conventional loan is too slow. Save Financial arranges hard money loans from $100K to $10M, up to 65% of value, typically funding in about 10 days once your file is complete. We have closed about 50 hard money loans.
Quick Answer
A hard money loan is short-term real estate financing secured by the property rather than your income or credit. California investors use it to move fast: fix-and-flips, auctions, bridge deals, and cash-out on investment property. On our recent files, typical pricing is about 10% interest plus 3 points, up to 65% of value, with funding in about 10 days. See current hard money loan rates and what moves them.
Comparing options? Read hard money broker vs direct lender: how rates, points and speed compare, and when each one wins.
Quick reference: hard money at a glance
| Loan amounts | $100K – $10M |
| Loan-to-value | Up to 65% of value |
| Rates (2026) | Typically about 10%, plus about 3 points (Nov 2026) |
| Term | 6 – 24 months (short-term) |
| Funding speed | About 10 days from a complete file |
| Qualifies on | The property & equity: not income |
| Best for | Investors, flips, bridge, fast closes |
Save Financial hard money, by the numbers (November 2026)
- About 50 hard money loans closed
- Up to 65% loan-to-value, so plan on 35%+ down or equity
- About 10 days to fund once the file is complete
- Typical pricing: about 10% interest plus 3 points; your terms depend on the property, leverage, experience and exit plan
“Hard money is about speed and the property, not your tax returns. As a broker, we shop 20+ wholesale lenders on every file, and if an eligible lender's locked offer beats ours, we match it or pay you $500.”
What is a hard money loan in California?
A hard money loan is a short-term loan secured by real estate, funded by private investors or specialty lenders rather than banks. The lender's main question isn't "how much do you earn?". It's "what is this property worth, and how much equity protects the loan?" That asset-first approach is what makes hard money fast and flexible, and why it's the go-to tool for California real estate investors who can't wait 30–45 days for a conventional loan to clear underwriting.
Because the loan is secured by the property and carries more risk for the lender, hard money costs more than a conventional mortgage, higher rates and upfront points, and the term is short. It's designed to be a temporary tool: buy fast, execute your plan, then sell or refinance into permanent financing.
How to get a hard money loan in California
A hard money loan is faster and lighter on paperwork than a conventional mortgage because approval is based on the property, not your income. The typical path:
- Define your exit. Hard money is short-term: the lender wants to know how you’ll repay: a flip sale, a refinance into a long-term loan, or the sale of another asset.
- Bring a down payment or equity. Save Financial’s hard money loans go up to 65% of value, so plan on at least 35% down or equity in the deal.
- Provide the basics. Purchase contract or current payoff, a rehab budget if you’re flipping, and proof of funds to close, no tax returns or income verification in most cases.
- Get the property valued. An appraisal or broker price opinion sets the loan amount.
- Close in about 10 days. Funds are wired and you’re ready to buy or start work.
As a broker, Save Financial compares multiple private and hard money lenders to find your lowest rate and the terms that fit your timeline.
Compare your loan options
Who is a hard money loan best for?
Hard money fits borrowers whose deal or situation doesn't suit a conventional lender:
- Fix-and-flip investors who need to buy and renovate quickly, often lending against the after-repair value. See our fix-and-flip loans.
- Buyers who need a fast close: auctions, off-market deals, or competitive offers where speed wins.
- Bridge situations: buying a new property before selling the old one. Compare with bridge loans.
- Investors scaling a portfolio who plan to refinance into a DSCR loan once the property is stabilized.
- Borrowers who can't document income conventionally but have strong equity or a strong asset. See also asset-based loans and non-QM.
Hard money rates, terms & costs in 2026
Hard money pricing reflects speed and risk. In the current California market, our typical pricing is about 10%, plus about 3 points (origination fees paid at closing). Loan terms typically run 6 to 24 months, often interest-only, with a balloon payment at the end when you sell or refinance.
The biggest lever on your pricing is equity: we lend up to 65% of value, so a larger down payment or more equity earns better terms. A clear, credible exit strategy, a sale or a pre-arranged refinance, also improves your rate. Use our mortgage calculator to model carrying costs, and check today's rates for conventional comparisons.
How the hard money process works
- Submit the deal. Property address, purchase price, rehab budget (if any), and your exit plan. No tax returns required to start.
- Valuation. The lender confirms the property value (and after-repair value for a flip). This is the core of the decision.
- Term sheet. You receive loan amount, LTV, rate, points, and term, usually within a day or two.
- Fast underwriting. Title, insurance, and entity docs, far lighter than a conventional file.
- Fund & close. Typically in about 10 days. Rehab funds, if any, are released in draws as work is completed.
- Exit. Sell the property or refinance into long-term financing before the term ends.
How to qualify for a Hard Money Loan in California
Present the property and equity
Hard money is based on the property’s value, not your income.
Gather documentation
Property details, your exit plan, and basic credit.
Get your terms
We present your loan-to-value, short-term rate, points, and term.
Fund and exit
Fast funding; you repay when you sell or refinance to a long-term loan.
Frequently asked questions about hard money loans in California
More answers: 18 more hard money loans questions borrowers ask, answered directly →
What is a hard money loan?
A hard money loan is a short-term real estate loan secured primarily by the property's value rather than the borrower's income or credit. It's funded by private investors or specialty lenders and is used by real estate investors who need speed or who can't qualify for conventional financing. Loan decisions hinge on the asset and the equity, not tax returns.
How fast can a hard money loan close in California?
Hard money loans can close far faster than conventional financing, and Save Financial’s hard money loans typically fund in about 10 days once the file is complete. Because qualification is based on the property and equity rather than full income underwriting, the process skips most of the documentation that slows a traditional mortgage.
What are hard money loan rates in California in 2026?
Hard money rates are higher than conventional because the loans are short-term and higher-risk for the lender. In 2026, Save Financial’s typical hard money pricing is about 10% interest plus 3 points (origination fees) at closing, as of November 2026. The exact rate depends on the property, your equity/down payment, experience, and exit strategy.
How much down payment do I need for a hard money loan?
Plan on at least 35% down or equivalent equity: Save Financial’s hard money loans go up to 65% of the property value. More equity and a clear exit strategy generally earn better pricing.
Do hard money lenders check credit?
Credit matters less than with a conventional loan, but most lenders still pull it. A hard money loan is approved mainly on the property's value and your equity, so borrowers with credit issues can often still qualify, though stronger credit and experience can improve your rate and terms.
Can I use a hard money loan for a fix-and-flip?
Yes, fix-and-flip is one of the most common uses. Hard money lenders often lend against the after-repair value (ARV) and can include a rehab budget drawn in stages. Investors use the short-term loan to buy and renovate, then sell or refinance to pay it off. See our fix-and-flip program for rehab-specific structures.
What's the difference between hard money and a bridge loan?
They overlap heavily. A bridge loan is a short-term loan that 'bridges' you from one position to another (for example, buying before selling). Hard money is the asset-based, privately-funded category that bridge loans often fall under. In practice, a hard money loan is frequently used as a bridge; the right label depends on the lender and the use case.
Do you offer private money loans in Orange County?
Yes. Save Financial arranges private money loans, another name for hard money, throughout Orange County, including Irvine, Newport Beach, Anaheim, Santa Ana, and Huntington Beach. These are asset-based loans funded by private investors and secured by the property, up to 65% LTV with funding in about 10 days, for fix-and-flips, bridge purchases, and cash-out on investment property. As a broker we compare multiple private lenders to find your best terms.
Can you refinance a hard money loan?
Yes, refinancing out of hard money is the standard exit. Once a flip is finished or a rental is stabilized and seasoned, investors refinance into a long-term loan: a DSCR loan (qualifying on the rent) for a rental, or a conventional loan for a primary home. Save Financial can arrange the hard money now and map the refinance exit up front.
What's the difference between a hard money loan and a DSCR loan?
Use a hard money loan to buy and renovate an investment property fast, then a DSCR loan to hold it long-term once it's rented. Hard money is a short-term bridge qualified on the deal; a DSCR loan qualifies on the property's rent, not your income. Many California investors run both in sequence. We arrange both.
Can I close a hard money loan in an LLC?
Yes. Hard money loans are built for investors, so vesting title in an LLC is standard and often preferred for liability and portfolio separation. There's no owner-occupancy requirement. You provide the LLC's operating agreement and articles at closing, and title vests in the entity rather than your personal name.
Can I get a hard money loan for my first fix-and-flip?
Yes. First-time flippers can get a hard money loan, though you'll usually see a slightly higher rate and lower LTV until you build a track record. A well-bought deal with a realistic after-repair value and clear exit matters more than experience. As a broker, we match new investors to the lenders most comfortable with first-timers.
What are the risks of a hard money loan?
The main risks are the higher rate and short term: if your flip runs long or your refinance falls through, carrying costs mount and some loans carry extension or prepayment terms. Mitigate it by buying with margin, budgeting a rehab cushion, and locking your exit, a sale or a DSCR refinance, before you borrow.
How do rehab draws work on a hard money loan?
On a fix-and-flip, hard money lenders fund the purchase up front and hold the rehab budget in reserve, releasing it in draws as work is completed and inspected. You typically front each stage of the rehab, then get reimbursed. Plan your cash flow around that draw schedule so your project never stalls.
How do I get a hard money loan in California?
For a hard money loan you mainly need a solid property and a clear exit plan (sale or refinance) rather than income documents. Expect 25-35% down or equity, funding in days to a couple of weeks, and higher rates and points. We shop multiple California hard-money lenders for the lowest cost on your deal, call (949) 379-5320.
What interest rates are hard money lenders charging in California?
California hard money rates typically run well above conventional (often roughly 9%-12%, plus points) depending on the loan-to-value, your experience, the property, and the exit plan. Pricing varies widely between private lenders, so we shop several to get you the lowest rate and points.
Have a deal that needs to close fast?
Tell us the property and your plan. We'll tell you the terms, usually within a day.
Related loan programs and guides
- Fix-and-Flip Loans: rehab financing against after-repair value.
- Bridge Loans: buy before you sell.
- DSCR Loans: the usual long-term exit for a rental.
- Asset-Based Loans: qualify on assets, not income.
- Investment Property Loans: conventional & portfolio options.
- Commercial Loans: for commercial real estate.
Sources & further reading
Hard money loans on investment property are business-purpose loans, so many consumer mortgage rules do not apply the same way; always confirm terms in writing. CFPB: Ability-to-Repay and Qualified Mortgage rule · NMLS Consumer Access: Save Financial, Inc. (#377740) · California DRE license lookup (#01875766)