Question 1

How quickly can I close on a hard money loan in Orange Cove?

Accepted Answer

Most hard money loans close within 5-10 business days once you provide the necessary property information and pay for the appraisal. Some lenders can fund even faster for simple transactions with experienced investors.

Question 2

What down payment do I need for a hard money loan?

Accepted Answer

Expect to put down 20-30% of the purchase price. Lenders base loan amounts on the property's current or after-repair value, whichever is lower, to protect their investment in the collateral.

Question 3

Can I use hard money for rental property purchases in Orange Cove?

Accepted Answer

Yes, though DSCR loans might offer better terms for stabilized rentals. Hard money works best when properties need immediate repairs before they can be rented or when you need extremely fast closing timelines.

Question 4

What happens if my renovation takes longer than expected?

Accepted Answer

Most hard money lenders offer extension options for additional fees, typically 1-2 points per extension period. Plan your budget to include potential extension costs as a safety buffer for construction delays.

Question 5

Do hard money lenders care about my credit score?

Accepted Answer

Credit matters less than with traditional loans, but scores above 600 improve your terms. Lenders focus primarily on the property's value and your exit strategy rather than credit history or income documentation.

Hard Money Loans in Orange Cove: Fast Funding for Real Estate Investors