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Hard Money Loans in Lakewood
Lakewood's postwar tract homes and aging apartment buildings create steady demand for investor capital. Most properties here need updates to compete, which makes speed matter more than rate.
Hard money fills the gap when traditional lenders move too slow. If you're buying at auction or need to close in 10 days, asset-based lending is often the only play.
Lakewood sits between Long Beach and Downey, with solid rental fundamentals. Investors use hard money here for fix-and-flip projects and bridge financing on multifamily conversions.
Hard money lenders care about the property, not your W-2. They lend 65-75% of after-repair value, which means you need skin in the game but credit scores under 600 still work.
Expect to bring 25-35% down. Lenders want a clear exit plan: flip timeline, refinance into conventional, or verified buyer lined up.
No tax returns, no employment verification, no debt-to-income calculations. Just asset value, project scope, and proof you can execute the plan.
Southern California has dozens of hard money lenders, but rates vary wildly. I've seen 8.5% from relationship-driven private lenders and 13% from online platforms for the same Lakewood duplex.
Points matter as much as rate. Expect 2-4 points upfront, sometimes more if the deal is marginal or timeline is compressed.
Local lenders who know Lakewood appraise faster and price more aggressively. National platforms hedge with higher rates because they don't understand the Long Beach submarket.
Most first-time flippers overestimate speed and underestimate holding costs. At 10% interest plus points, every extra month kills profit margin on a $500K Lakewood property.
I push clients toward hard money with confirmed contractor bids and conservative timelines. Vague renovation plans get expensive fast when the project drags past 6 months.
The best hard money deals have a refinance path already mapped. If your credit is 680+ and you're converting to a rental, line up a DSCR lender before you close the hard money loan.
Bridge loans cost less but require better credit and slower closing. DSCR loans beat hard money rates by 3-4 points but won't fund properties needing major rehab.
If the property is rentable as-is, skip hard money entirely. A DSCR loan at 7-8% makes more sense than hard money at 11% for a property that just needs paint and carpet.
Construction loans offer longer terms but require licensed contractors and draw schedules. Hard money is faster and simpler for straightforward fix-and-flip projects under $150K in rehab.
Lakewood parcels are mostly single-family, which simplifies appraisals and resale. Multifamily conversions are rare here compared to Long Beach, so lenders price straightforward rehabs competitively.
City permits move reasonably fast for cosmetic work but plan 8-12 weeks for anything structural. Factor permit timelines into your hard money budget since interest accrues daily.
Exit markets are strong. Long Beach and Cerritos buyers shop Lakewood for affordability, and investor appetite for small multifamily stays consistent. That makes lenders more comfortable.
Most local lenders close in 7-14 days with clear title. National platforms take 14-21 days but may offer slightly lower rates.
Many lenders approve down to 550-580 credit. The property and your down payment matter more than your score.
Hard money is for investment properties only. You cannot occupy the property during the loan term.
Most lenders offer 6-12 month extensions at additional cost. Budget 1-2 points plus ongoing interest for each extension period.
Plan for 25-35% down plus closing costs, plus full renovation budget. Lenders rarely fund 100% of rehab costs upfront.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.