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Hard Money Loans in Santa Clarita
Santa Clarita's investment properties—from older homes in Canyon Country to distressed properties in Newhall—often need hard money financing when conventional lenders won't approve.
Investors target fixer properties in established neighborhoods like Valencia and Saugus where renovation spreads justify the higher cost of short-term capital.
Speed matters in Santa Clarita's competitive investor market. Hard money closes in 7-14 days versus 30-45 for conventional financing.
These loans work for properties traditional lenders reject: major deferred maintenance, code violations, or non-warrantable conditions that block standard financing.
Lenders focus on the property's after-repair value, not your W-2 income or credit score. A 600 credit score can get approved if the deal makes sense.
Expect to put 20-30% down. Lenders lend up to 70% of purchase price or 65% of after-repair value, whichever is lower.
You need a clear exit strategy: refinance into DSCR financing, sell the renovated property, or have verifiable funds to pay off the loan at maturity.
No tax returns, no employment verification. Lenders underwrite the property's profit potential and your experience level as an investor.
Santa Clarita hard money lenders range from local private funds to national platforms. Rates run 9-14% with 2-4 points depending on loan-to-value and experience.
Private lenders move faster but cost more. Institutional hard money offers lower rates but requires more documentation and takes longer to close.
Most loans run 6-12 months with extension options. Interest-only payments keep monthly costs manageable during renovation.
Watch for prepayment penalties, extension fees, and inspection requirements. Some lenders charge 3-5% to extend beyond the initial term.
Hard money makes sense when acquisition speed creates profit. Losing a deal waiting for conventional approval costs more than paying 12% for 6 months.
Your renovation budget matters as much as purchase price. Lenders verify contractor bids and fund renovations in draws based on completed work.
First-time flippers pay higher rates than experienced investors. Track record with successful exits reduces perceived lender risk and improves terms.
Calculate all costs before committing: loan interest, points, holding costs, and renovation budget. Hard money eats profit if you underestimate timelines.
Bridge loans offer 30-90 day funding for investors who need longer terms than hard money but can't qualify for conventional yet.
DSCR loans make sense after renovation when the property cash flows. Rates run 7-9% with 30-year terms versus hard money's 6-12 months.
Construction loans work for ground-up builds but require detailed plans and licensed contractors. Hard money handles simpler rehab projects with more flexibility.
Investor cash-out refinancing becomes your exit strategy once renovations complete and the property appraises at stabilized value with tenants in place.
Santa Clarita's master-planned communities like Valencia have strict HOA rules that can complicate renovations. Verify approved exterior changes before buying.
Canyon Country and Newhall offer older housing stock with better renovation spreads but permit timelines run 4-8 weeks for major work.
Saugus properties near the 14 freeway attract investors targeting commuter renters, making DSCR refinancing easier after renovation completes.
Los Angeles County permits and inspections add time and cost. Factor 15-20% longer timelines than similar projects in less regulated counties.
Experienced hard money lenders close in 7-10 days once they receive a purchase contract and property details. Complex projects or first-time borrowers may take 14 days.
Most lenders accept 600+ credit scores since they underwrite the property's value and profit potential, not your income. Lower scores mean higher rates or more equity required.
Hard money is investment financing only. Owner-occupied buyers need FHA, conventional, or other residential mortgages designed for primary residences.
Lenders fund 70% of purchase price or 65% of after-repair value, whichever is lower. On a $500k purchase with $600k ARV, you'd get $350k maximum loan.
Lenders hold renovation funds in escrow and release them in stages as work completes. Expect 3-5 inspections with draws released after each milestone verification.
Most lenders offer 3-6 month extensions at 3-5% of the loan balance. Build buffer time into your timeline since delays are common on renovation projects.
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.