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San Fernando's older housing stock and proximity to major LA corridors make it a fix-and-flip target. Hard money fills the gap when traditional lenders won't touch a distressed property or when you need to close in 10 days.
Most hard money deals here fund 65-75% of purchase price plus rehab costs. Expect 9-13% interest with 2-4 points upfront. Terms run 6-18 months, long enough to renovate and refinance or sell.
This loan type works for properties that need serious work—foundation issues, permit problems, or complete gut jobs. San Fernando's older homes often fall into this category.
Hard Money Loans in San Fernando
Lenders care about the deal, not your W-2. They'll fund if the after-repair value supports the loan amount. Most want to see 25-30% equity cushion between the loan and projected ARV.
You need a clear exit strategy—either a refinance timeline or buyer interest. Lenders won't fund indefinitely. Show them comps proving your ARV estimate and a realistic rehab budget.
Credit matters less than with traditional loans, but sub-500 scores or recent foreclosures still create problems. Most lenders want 580+ and no bankruptcies in the past two years.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in San Fernando.
San Fernando's older housing stock and proximity to major LA corridors make it a fix-and-flip target. Hard money fills the gap when traditional lenders won't touch a distressed property or when you need to close in 10 days.
Most hard money deals here fund 65-75% of purchase price plus rehab costs. Expect 9-13% interest with 2-4 points upfront. Terms run 6-18 months, long enough to renovate and refinance or sell.
This loan type works for properties that need serious work—foundation issues, permit problems, or complete gut jobs. San Fernando's older homes often fall into this category.
We work with 15+ hard money lenders who fund in San Fernando. Rates and terms vary wildly—some charge 9% with 2 points, others hit 13% with 4 points. Shopping matters here more than anywhere else.
Local lenders move faster because they know the market. National lenders offer better rates but slower timelines. The right choice depends on whether you're racing another buyer or have time to negotiate.
Watch for prepayment penalties and extension fees. Some lenders charge 3-6 months interest if you pay off early. Others add 1-2 points for every 90-day extension.
Half the hard money deals I see could have used bridge loans instead—better rates, longer terms. But hard money makes sense when the property needs major work or you're buying at auction.
San Fernando's permit requirements add time. Budget an extra 30-60 days for city approvals. That affects your loan term and carrying costs. Factor that into your numbers before you borrow.
Don't underestimate rehab costs. Add 20% to your contractor's estimate. I've seen deals fail because borrowers ran out of money three-quarters through renovation.
Bridge loans offer 7-9% rates if the property is habitable and you have decent credit. That's 3-5 points cheaper than hard money. Use hard money only when bridge lenders say no.
DSCR loans work for rental properties you plan to keep. Rates run 7-8% for 30 years versus 10-12% for 12 months with hard money. The property needs to be rent-ready though.
Construction loans fund major renovations at better rates but require detailed plans and licensed contractors. Hard money moves faster with less documentation.
San Fernando sits in LA County's lower-priced zone, which means smaller loan amounts and tighter margins. A 3-point difference in loan costs can kill a deal. Shop aggressively.
The city's older building stock means you'll hit surprises—outdated electrical, plumbing issues, foundation settling. Build extra months and money into your timeline.
Proximity to the 5 and 118 freeways makes San Fernando attractive to LA commuters. That supports your exit strategy—either refi as rental or sell to owner-occupant.
Most lenders close in 7-14 days once they approve the deal. We've seen cash-equivalent closings in 5 days when needed.
Anything with clear title and verifiable value. Distressed properties, estate sales, auction purchases, and major fixer-uppers all work.
Some lenders require it, others don't. First-time flippers get approved but may face higher rates or lower LTV.
Yes, most borrowers refinance into bridge or conventional loans after renovation. Plan that timeline before you borrow.
Most lenders offer 90-day extensions for 1-2 points. Plan ahead because extensions cost $3K-$6K on typical loan amounts.