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Hard Money Loans in San Gabriel
San Gabriel's mix of older single-family homes and multi-unit properties creates strong opportunities for fix-and-flip investors. Hard money gives you speed when traditional lenders can't move fast enough on distressed assets or time-sensitive deals.
The city's proximity to major job centers and established neighborhoods means renovation projects can sell quickly. That short hold period aligns perfectly with hard money's 6-12 month typical terms.
Lenders care about the property's after-repair value and your experience as an investor. Most require 20-30% down and want to see a clear exit strategy—either a sale or refinance into permanent financing.
Credit matters less than with conventional loans, but expect scrutiny on your renovation budget and timeline. Lenders fund based on the deal's potential, not your W-2 income.
Hard money lenders vary wildly on rates and terms. Some specialize in quick cosmetic rehabs, others fund ground-up construction. Shopping across multiple lenders can save you 2-4 points on origination fees alone.
Portfolio lenders with local knowledge tend to move faster on San Gabriel properties than national platforms. They understand neighborhood values and can underwrite deals in days, not weeks.
The biggest mistake I see is underestimating renovation costs and timelines. Every month you hold the property costs you interest. Build a 15-20% buffer into your budget and add 30 days to your timeline.
Hard money works when you have a clear value-add play. If you're just banking on appreciation, you'll get crushed by the interest. Know your comps, know your exit, and have backup plans if the property doesn't sell immediately.
Bridge loans offer similar speed but typically require better credit and lower rates. DSCR loans work for rental holds but take 3-4 weeks to close. Hard money trades higher cost for maximum flexibility and speed.
If you plan to hold the property as a rental after renovation, start with hard money then refinance into a DSCR loan. That gives you fast acquisition without getting stuck in expensive short-term debt.
San Gabriel's older housing stock often needs significant updating to compete with newer inventory. Lenders want to see renovation plans that match neighborhood standards—overbuilding hurts your exit value.
Permitting through Los Angeles County can add time to your project. Factor those delays into your hold period or the interest will eat your profit. Some lenders offer extension options but they're expensive.
Most deals close in 7-14 days once you have a property under contract. Local lenders who know San Gabriel values can move even faster on straightforward deals.
Rates vary by borrower profile and market conditions, but typically range from 8-12% with 2-5 points in origination fees. Stronger deals and experienced investors get better terms.
Yes. Lenders focus on the property's value and your exit strategy, not your credit score. Some won't even pull credit for asset-based deals.
Most loans run 6-12 months with options to extend. Plan your renovation timeline carefully since interest accrues daily and extensions cost money.
Experience helps you get better terms, but many lenders fund first-time flippers if the deal is strong. They may require a larger down payment or slightly higher rates.
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.