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Hard Money Loans in Long Beach
Long Beach's diverse housing stock makes it a strong hard money market. Century-old bungalows in Belmont Shore and distressed properties in Central Long Beach create consistent flip opportunities.
Speed matters here. When competing against cash buyers on REO properties or courthouse steps, hard money closes in 7-14 days versus 30-45 for conventional.
Most Long Beach hard money deals I see are coastal teardowns or multi-unit value-adds near the Metro. Investors target properties banks won't touch due to condition or timeline pressure.
Hard money lenders fund based on the property's after-repair value, not your credit score. Most require 20-30% down and look at your exit strategy more than your W-2.
Your experience matters. First-time flippers often need stronger projects or higher equity. Repeat investors with proven track records get better terms and faster approvals.
Expect rates of 9-14% with 2-4 points at closing. Loan terms run 6-24 months. These aren't cheap, but they're accessible when traditional financing isn't an option.
I work with 15+ hard money lenders who actively fund in Long Beach. Each has different appetites for property types, loan-to-value ratios, and borrower experience levels.
Some specialize in small residential flips under $500K. Others focus on multi-unit or commercial mixed-use. Shopping your deal across lenders can save 2-3 points on origination fees.
Local lenders often move faster than national funds because they know Long Beach neighborhoods. They understand which blocks in North Long Beach are trending versus declining.
Hard money works best when you have a clear 6-12 month exit. I've seen investors lose money holding properties past their loan term when they misjudged renovation timelines.
Get your contractor lined up before closing. Lenders release rehab funds on a draw schedule. If your contractor ghosts or runs over budget, you're stuck paying high monthly interest with no progress.
Most successful Long Beach flips I broker refinance into DSCR loans or sell before the hard money term expires. Have your exit plan before you sign the loan docs.
Bridge loans offer lower rates (7-10%) but require stronger borrower profiles. Hard money focuses purely on the asset and closes faster with looser requirements.
DSCR loans work for rental holds but take 30 days to close. If you're buying at auction or need to act within a week, hard money is your only realistic option.
Construction loans from banks require detailed plans, licensed contractors, and 45-day closings. Hard money lenders care more about your purchase price versus ARV spread than your blueprints.
Long Beach permits can run 8-12 weeks for major rehabs. Factor this into your loan term. Most lenders give 12 months but charge extension fees at 1-2 points if you need more time.
Coastal properties face California Coastal Commission review on certain improvements. This adds 30-90 days to timelines. Hard money rates make these delays expensive.
The strong rental market here creates good DSCR refinance options post-flip. Many investors use hard money to acquire and renovate, then cash-out refi into a rental hold instead of selling.
Most lenders approve with scores as low as 580-600. They care more about the property's value and your down payment than your credit history.
Typical closing is 7-14 days with all documents ready. Some lenders fund in 5 days for simple deals with strong equity positions.
Yes, hard money works well for 2-4 unit properties. Some lenders fund small apartment buildings if the numbers support the after-repair value.
Most lenders go up to 70-75% of after-repair value. Your down payment plus rehab costs should cover the remaining 25-30%.
Yes, most include rehab budgets in the loan. Funds release on a draw schedule as contractors complete work and pass inspections.
Lenders charge extension fees of 1-2 points for additional months. Some require full payoff and reapplication after the initial term expires.
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.