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San Gabriel's real estate market moves fast. Investors and buyers with tight timelines often turn to hard money when conventional lenders can't close in time or when property condition blocks traditional financing.
Hard money lenders focus on the asset — the property itself — rather than credit scores or income verification. That speed comes at a cost: higher interest rates, shorter loan terms, and upfront fees that eat into returns.
8% to 15%
Typical Interest Rate
7 to 14 days
Closing Timeline
20% to 30%
Typical Down Payment
6 months to 3 years
Loan Term
1% to 5%
Origination Fees
Hard Money Loans in San Gabriel
Hard money qualification centers on the property value and your equity position, not your FICO score. Lenders typically want 20% to 30% equity or down payment, though some will go lower on strong properties.
Los Angeles County's median household income is $87,760. Hard money borrowers often include investors, fix-and-flip buyers, and owner-occupants with non-traditional income. Credit history matters less than the deal itself.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in San Gabriel.
San Gabriel's real estate market moves fast. Investors and buyers with tight timelines often turn to hard money when conventional lenders can't close in time or when property condition blocks traditional financing.
Hard money lenders focus on the asset — the property itself — rather than credit scores or income verification. That speed comes at a cost: higher interest rates, shorter loan terms, and upfront fees that eat into returns.
Hard money qualification centers on the property value and your equity position, not your FICO score. Lenders typically want 20% to 30% equity or down payment, though some will go lower on strong properties.
California's hard money market is fragmented. Private lenders, hedge funds, and small lending groups each set their own terms. There's no standardized rate or fee structure the way there is with conventional mortgages.
Rates typically run 8% to 15% depending on the deal, the lender, and market conditions. Origination fees range from 1% to 5% of the loan amount. Some lenders charge points; others charge monthly interest-only payments.
Hard money makes sense in San Gabriel when you're buying a property that needs work or when timing is critical. A conventional lender won't touch a foundation issue or a property in probate. Hard money will — if the numbers work.
The real cost isn't just the rate. It's the short term. A 12-month hard money loan forces you to refinance or sell within a year. If your fix-and-flip takes longer or the market softens, you're paying extension fees and higher rates on the back end.
Conventional loans run 5% to 7% and last 30 years. Hard money runs 8% to 15% and lasts 12 months. The conventional path is cheaper if you can qualify and wait 30 to 45 days to close.
Hard money wins only if you need cash in a week or the property won't qualify for conventional financing. For a standard purchase in San Gabriel, conventional is almost always the better choice.
San Gabriel's housing stock is aging. Many properties need foundation work, roof replacement, or electrical updates. That's where hard money shines — it finances the purchase and the repair in one loan.
The city's proximity to downtown Los Angeles and the San Gabriel Valley job centers makes it attractive for investors. Fix-and-flip buyers see opportunity in older homes that conventional lenders won't touch.
Hard money lenders care less about credit than conventional lenders. Many will work with scores in the 600s if the deal is solid. The property value and your equity position matter more than your FICO.
7 to 14 days is typical. Some lenders close in 5 days if you're ready. Conventional loans take 30 to 45 days. Speed is hard money's main advantage.
Expect 8% to 15% interest, 1% to 5% origination fees, and possibly points. On a $500,000 loan at 10%, you're paying roughly $50,000 per year in interest alone. Add the short term and it gets expensive fast.
Yes, but it's rarely smart. Hard money is designed for short-term deals. If you plan to stay in the home, conventional financing is cheaper and lets you keep the loan for 30 years.
You'll face extension fees, higher rates on the extension, or default. That's why exit strategy matters. Know exactly how you'll repay before you borrow.