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Hard Money Loans in Paramount
Paramount sits in southeast LA County where investors find older housing stock perfect for value-add projects. These properties need speed more than perfect credit.
Hard money focuses on the asset, not your W-2. Most deals close in 7-14 days when you need to beat cash offers or start renovations fast.
Investors use hard money here for properties that won't qualify for conventional financing during the renovation phase. After rehab, you refinance into permanent financing.
Lenders care about one thing: the property's after-repair value. They'll lend 65-75% of ARV, which covers purchase and most renovation costs.
You need skin in the game. Expect to bring 25-35% of total project cost as your down payment plus reserves for the rehab.
Credit scores down to 600 work if the deal makes sense. Recent foreclosures or bankruptcies don't automatically disqualify you like they would on conventional loans.
Most lenders want to see a clear exit strategy. Either sell after flip or refinance into DSCR or conventional financing within 6-24 months.
Private lenders and small funds dominate this space. They move faster than banks because they're betting on property value, not your debt ratios.
Rates run 9-14% with 2-5 points upfront. Yes, that's expensive. You're paying for speed and flexibility when traditional financing won't work.
Terms typically run 6-18 months with interest-only payments. The loan isn't meant to be permanent—it's a tool to acquire and renovate.
Some lenders include renovation holdbacks, releasing funds as work progresses. Others wire everything at close if you have contractor experience.
First-time flippers often underestimate total costs. Budget 20% above your contractor's estimate and add holding costs for every month you own it.
The best hard money deals close fast because the property won't wait. Have your entity set up, funds ready, and contractor lined up before you make offers.
I've seen investors lose money trying to save on rates. A 10% loan that closes in a week beats an 8% loan that takes 45 days when you're competing for properties.
Your exit matters more than your entry. Know whether you'll sell or refinance before you close, because that drives which hard money lender fits best.
Bridge loans cost less but move slower and need better credit. Hard money trades higher costs for speed and looser underwriting.
After renovation, refinance into DSCR loans if you're keeping it as a rental. DSCR rates run 7-9% with 30-year terms, much cheaper to hold long-term.
Construction loans work for ground-up builds but require more documentation and time. Hard money fits quick property acquisitions that need immediate work.
Conventional investor loans won't touch properties needing major work. Hard money fills that gap until the property is rent-ready or retail-ready.
Paramount's location near major employment centers makes it attractive for rentals after rehab. Plan your ARV based on actual recent comps, not optimistic projections.
LA County permit processes can delay timelines. Factor 30-60 days for permits on major renovations when planning your holding period.
Many Paramount properties have deferred maintenance from absentee owners. Get thorough inspections—hidden foundation or electrical issues kill margins fast.
The rental market here supports DSCR refinancing after flip. If numbers work better as rental than retail sale, having that option adds flexibility.
Most deals close in 7-14 days with complete documentation. Cash-out or complex properties might take 3 weeks, still faster than conventional.
Most lenders offer extensions for a fee, typically 1-2 points per extension. Plan for worst-case timelines to avoid this.
Yes, but you'll refinance into DSCR or conventional within 6-18 months. Hard money rates are too high for permanent financing.
No. They underwrite the property's value and your equity, not your personal income or employment.
Most lenders work with 600-640 scores if the deal is strong. Higher scores get better rates, but credit isn't the deciding factor.
First-time flippers can qualify with larger down payments or experienced contractors. Lenders want confidence in project completion.
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.