Question 1

How fast can a hard money loan close in California?

Accepted Answer

Most hard money loans close in 7–21 business days. Repeat borrowers with demonstrated experience often close on the faster end. Rush closings in 5–10 days are available in some circumstances.

Question 2

Do hard money lenders in California check credit?

Accepted Answer

Credit is reviewed but is not the primary underwriting factor. Most programs have a minimum around 640 FICO. Strong property fundamentals, a clear exit strategy, and adequate equity can offset thin or imperfect credit.

Question 3

What is the maximum LTV on a California hard money loan?

Accepted Answer

Up to 70–75% of After Repair Value (ARV) for fix-and-flip deals. For purchase + renovation structures, up to 85–90% of total project cost. Loans on stabilized properties typically go to 65–70% of current appraised value.

Question 4

Can I use hard money financing for a commercial property in California?

Accepted Answer

Yes. Hard money loans are available on commercial, multi-family (5+), mixed-use, and 1–4 unit residential investment properties. Minimums and LTVs vary by property type.

Question 5

How does foreclosure work on a hard money loan in California?

Accepted Answer

California uses a non-judicial trustee’s sale under California Civil Code §§2924–2924l. The lender records a notice of default, waits a three-month cure period, then gives at least 20 days’ notice of sale — roughly four to six months start to finish. There is no post-sale redemption right following a trustee’s sale; redemption applies only to judicial foreclosure, which lenders rarely use because it forfeits the power of sale. Verified as of September 2026.

Question 6

Does the Los Angeles transfer tax affect a hard money exit?

Accepted Answer

It can, substantially. Measure ULA applies an additional transfer tax on City of Los Angeles property sales — 4% on transfers at or above roughly $5.4 million and 5.5% at or above roughly $10.9 million, on top of existing county and city transfer taxes. On a $6,000,000 exit that is roughly $240,000 before any other closing cost. If your exit strategy is a sale inside LA city limits above that threshold, the tax belongs in the underwriting from day one, not the closing statement. Thresholds are indexed and change, so confirm the current figures with your closing agent. Verified as of September 2026.

Feature	Typical Range
Loan amounts	$100,000 – $5,000,000+
LTV	Up to 70–75% ARV; up to 90% of purchase + rehab
Term	6–24 months
Close time	7–21 business days
Income docs	Not required — asset-based underwriting
Pre-payment	None on most programs

California Hard Money Loans