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Hard Money Loans in Lynwood
Lynwood's South LA location attracts fix-and-flip investors targeting affordable properties with renovation upside. Hard money fills the gap when traditional lenders won't touch distressed assets or move fast enough for competitive offers.
Most Lynwood deals close in 7-14 days with hard money versus 30-45 days for conventional financing. Speed matters when you're competing against cash buyers in tight inventory markets.
Hard money lenders focus on the property's after-repair value, not your W-2 income. You can qualify with credit scores as low as 580 if the numbers work on the asset.
Expect to put down 20-35% depending on your experience and the property condition. First-time flippers pay more than repeat investors with proven track records.
We work with 15+ hard money lenders who actively fund in South LA. Each has different appetites for property condition, loan size, and borrower experience.
Rates range from 8-14% with 2-4 points upfront. The spread is huge because terms depend on your exit strategy, timeline, and the specific property address.
Don't use hard money unless you have a clear exit in 6-12 months. These loans aren't designed to hold long-term. Plan to refinance into DSCR or sell after renovation.
Most Lynwood investors underestimate carrying costs. At 12% interest on a $400K loan, you're paying $4K monthly just in interest before property taxes and insurance.
Bridge loans offer lower rates but require better credit and more documentation. DSCR loans work for rental holds but take longer to close and need tenants in place.
Hard money makes sense when speed matters more than rate. If you're buying at auction or beating 10 other offers, the extra points pay for themselves.
Lynwood's proximity to I-105 and I-710 makes properties attractive to rental investors post-renovation. Lenders see decent exit opportunities through either sale or refinance to rental loans.
Some lenders cap loan amounts at $500K in this ZIP code due to property values. You'll have more options in the $200K-$400K range where most Lynwood deals sit.
Most deals close in 7-14 days once you have a purchase contract. Some lenders can fund in 5 days if the property is straightforward and you have your down payment ready.
Many lenders approve at 580, some go lower. Your credit affects rates and points more than approval since the property secures the loan.
No. Hard money is for investment properties only. If you're buying a home to live in, you need conventional or FHA financing.
Usually 12 months with options to extend 3-6 months. Extensions cost extra in fees and higher interest rates.
Yes, that's exactly what hard money covers. Lenders fund based on after-repair value, not current condition.
Most lenders fund up to 90% of purchase price plus 100% of renovation costs, limited by after-repair value. You still need 20-35% cash in the deal.
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.