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Hard Money Loans in San Dimas
San Dimas sits in the eastern LA County sweet spot where investors find better deals than westside markets but still catch buyer demand from commuters and families. The older housing stock here creates constant fix-and-flip opportunities.
Hard money works well in San Dimas because properties move fast when priced right. Traditional financing takes 30-45 days. Hard money closes in 7-14 days, which wins deals in competitive situations.
Lenders approve based on the property's after-repair value, not your W-2 income or credit score. Most require 65-75% loan-to-value on purchase price. Credit scores below 600 still get approved if the deal makes sense.
You need skin in the game. Expect to put down 25-35% of purchase price plus hold renovation costs in reserve. No tax returns required. No employment verification. Just proof the property's worth fixing.
We work with 15+ hard money lenders who actively fund in San Dimas. Rates range from 9.5% to 13.5% depending on experience level and deal strength. Points run 2-4% of loan amount.
Different lenders have different appetites. Some prefer single-family flips. Others fund small multifamily or ground-up construction. Shopping across our lender network saves borrowers 1-2 points and 50-150 basis points on rate.
Most first-time flippers underestimate holding costs. In San Dimas, a basic cosmetic flip takes 4-6 months from purchase to resale. Budget for 6 months of hard money payments at 12% on a $500K loan equals $30K in interest alone.
The best hard money deals I see have clear exit strategies. Either refinance to DSCR after renovation or sell within 12 months. Lenders get nervous when borrowers can't articulate their exit plan in specific terms.
Hard money makes sense when speed matters or you can't qualify conventionally. Once the property's renovated and rented, refinance to a DSCR loan at 7-8% instead of paying 12% forever.
Bridge loans offer similar speed but require better credit and more documentation. Construction loans work for ground-up builds but take longer to close. Hard money fills the gap when you need capital now and conventional lenders say no.
San Dimas permits move faster than incorporated LA cities but slower than unincorporated county areas. Plan 4-8 weeks for permit approval on standard renovations. Foundation or structural work adds time.
The resale market here favors updated homes with modern finishes. Buyers expect granite counters, updated baths, and neutral paint. Half-finished flips sit longer and sell for less. Finish the job or don't start it.
Most deals close in 7-14 days with clean title. We've closed in 5 days when borrowers had cash reserves verified and property appraisal ordered immediately.
Most lenders approve scores above 580. Some go down to 500 if you have strong reserves and the deal shows clear profit potential after renovation.
No. Hard money is for investment properties only. If you need fast closing on a primary home, look at bridge loans or conventional with appraisal waiver instead.
On a $500K loan at 11% held for 6 months, you pay roughly $27,500 in interest. Points at closing add another $15K-$20K to total costs.
Most provide renovation holdbacks released in draws as work completes. Expect lender inspections before each draw release to verify work quality and progress.
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.