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Fresno's fix-and-flip market moves fast. Distressed properties sell within days, and traditional lenders take weeks to approve. Hard money closes in 7-14 days, funded by the property's after-repair value, not your W-2.
Most Fresno investors use hard money for pre-foreclosures in Tower District, dated homes near Woodward Park, or multifamily conversions downtown. If the deal pencils at 70% LTV on ARV, you can usually get it funded.
Hard Money Loans in Fresno
Lenders care about one thing: the deal. They'll fund 65-75% of after-repair value if you prove the numbers work. Credit matters less than experience—first-time flippers need more equity down or a construction partner.
Most require a detailed scope of work, contractor bids, and proof of reserves to cover six months of payments. If your project runs long, you're still making the monthly interest payment.
We work with 15+ hard money lenders who fund California deals. Some focus on cosmetic rehabs under $400K. Others do ground-up construction or commercial conversions. Rate spreads vary 3-4 points between the most aggressive and most conservative.
Local private lenders often beat national shops on speed but charge higher rates. Out-of-state institutional lenders offer better pricing but demand more documentation. We match your timeline and experience level to the right capital source.
Hard money works when speed matters more than rate. I've seen investors lose $40K deals trying to save 2 points on origination. If a property needs $60K in work and will appraise for $350K, pay the 11% and move fast.
Biggest mistake: underestimating rehab costs. Lenders fund based on your budget, but if you run over, you're covering overages out of pocket. Pad your construction budget 15% and your timeline 30 days. Fresno permit delays happen.
Bridge loans offer similar speed but require better credit and existing equity. DSCR loans provide long-term rental financing at lower rates but take 20-30 days. Hard money is the only option that closes in a week and funds based purely on deal quality.
Think of hard money as the acquisition tool. Once you stabilize the property, refinance into a DSCR loan at 7-8% for long-term rental income. Or sell and move capital to the next deal.
Fresno permit timelines vary wildly by project scope. Cosmetic work gets approved fast. Structural changes or additions can take 45-60 days. Factor this into your hard money term—most lenders charge 1-2 points for extensions.
Certain neighborhoods appraise better than others. Tower District and Fig Garden command premiums. Southeast Fresno requires deeper discounts to make numbers work. Know your ARV comps before you commit to a purchase price.
Most lenders close in 7-14 days once they receive appraisal and scope of work. All-cash proof of funds moves faster than properties needing title work. Expect 10 days on average for clean deals.
Many lenders approve deals with scores in the 500s if the property and plan are strong. Your FICO matters less than loan-to-value and exit strategy. First-time flippers need higher credit than experienced investors.
No. Hard money is for investment properties only. If you plan to occupy the home, you need a conventional rehab loan like FHA 203k or Fannie Mae HomeStyle, which take 30-45 days to close.
You'll pay extension fees, typically 1-2 points per month beyond the original term. Budget for delays when calculating profit margins. Some investors refinance into bridge loans if major delays occur.
Some do, most don't. Vacant land is riskier collateral. Lenders prefer improved properties or lots with approved permits. If you're buying land, expect 50% LTV max and higher rates.
Only if you need speed or the property won't qualify for DSCR financing yet. Close fast with hard money, stabilize the property and tenants, then refinance into a 30-year DSCR loan within six months.