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Lafayette's established neighborhoods and strong resale values make it prime territory for fix-and-flip projects. Older homes near downtown and Burton Valley often need updates that hard money financing handles well.
This isn't a market where you wait 45 days for conventional approval. Competitive bidding and limited inventory mean investors need funding that closes in 7-14 days, which is exactly what hard money delivers.
Hard Money Loans in Lafayette
Hard money lenders care about one thing: the property's after-repair value. Your credit score and tax returns barely matter. Most lenders want 20-30% down and proof you've completed similar projects.
Expect loan-to-value ratios around 65-75% of the purchase price or current value. If the numbers work on your renovation budget and exit strategy, you'll likely get approved regardless of your W-2 income.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Lafayette.
Lafayette's established neighborhoods and strong resale values make it prime territory for fix-and-flip projects. Older homes near downtown and Burton Valley often need updates that hard money financing handles well.
This isn't a market where you wait 45 days for conventional approval. Competitive bidding and limited inventory mean investors need funding that closes in 7-14 days, which is exactly what hard money delivers.
Hard money lenders care about one thing: the property's after-repair value. Your credit score and tax returns barely matter. Most lenders want 20-30% down and proof you've completed similar projects.
Hard money rates in Lafayette typically run 9-14% with 2-4 points upfront. That sounds expensive until you calculate the cost of missing a good deal or letting a conventional loan drag out for two months.
We work with about 30 asset-based lenders who specialize in different property types. Some focus on single-family flips, others prefer small multifamily. The right lender match saves you thousands in fees and rate.
I see investors blow deals in Lafayette by shopping hard money rates like conventional mortgages. Speed and reliability matter more than half a point. The lender who funds in 10 days beats the one quoting 0.5% lower but needing three weeks.
Your exit strategy determines which lender to use. Planning to refinance into a DSCR loan after renovation? Use a lender who won't charge prepayment penalties. Selling immediately? Go for the lowest total cost even with prepay hits.
Bridge loans offer similar speed but require better credit and income documentation. Hard money wins when you need pure asset-based approval. DSCR loans cost less but take 3-4 weeks and only work for rental properties.
Construction loans provide renovation funding but need detailed draw schedules and contractor bids upfront. Hard money gives you more flexibility to adjust your rehab plan as you uncover issues.
Lafayette's strict building codes and design review requirements can extend your renovation timeline. Factor that into your hard money term length. A 6-month loan often needs extension if you hit permitting delays.
Properties near downtown Lafayette and in Burton Valley Schools boundaries hold value better, which gives you more negotiating room with hard money lenders. They'll lend more aggressively on prime locations where exit strategies are clearer.
Most hard money lenders fund in 7-14 days. Some can close in 5 days if you have all documentation ready and the property appraises cleanly.
Most lenders don't have hard minimums. Scores above 600 help, but the property value and your down payment matter far more than credit history.
Rarely works. Hard money is designed for investment properties and flips. You'd pay 10-13% interest when conventional loans cost 7%, which makes no financial sense.
Most lenders offer extensions at higher rates, typically adding 1-2% to your interest rate. Budget 12-18 months of costs even for planned 6-month projects.
Some do through draw schedules tied to project milestones. Others only fund acquisition, requiring you to bring separate capital for renovations.