Loading
Hard Money Loans in Santa Monica
Santa Monica's tight inventory and premium price points create situations where traditional financing timelines kill deals. Hard money loans give investors the speed to close in 7-14 days instead of 30-45.
Most Santa Monica flip opportunities involve older properties near the beach or mid-century homes in Sunset Park. These often need significant work before they qualify for conventional appraisals.
We see hard money used heavily for properties in rent-controlled zones where DSCR loans won't pencil. The asset-based approval lets you buy now and refinance later.
Lenders approve based on the property value and your exit strategy, not your tax returns. You need skin in the game — expect to put down 25-35% depending on the project scope.
Most hard money lenders want to see renovation experience if you're planning a rehab. First-time flippers typically need a licensed contractor lined up before approval.
Credit matters less than conventional loans, but scores below 600 will limit your lender options. Bankruptcies over 2 years old usually won't disqualify you.
Santa Monica properties command higher loan amounts, so you need lenders comfortable with $2M+ deals. Not all hard money shops operate at that scale.
Private lenders in California vary wildly on rates and points. We've seen quotes from 8% to 14% with 2-4 points upfront on the same property.
Some lenders cap rehab budgets at 15-20% of purchase price. Others will fund full gut renovations. Finding the right match saves you from piecing together multiple capital sources.
The biggest mistake we see is underestimating the true renovation timeline. Hard money terms run 6-12 months. If your project slips, extension fees add up fast.
Have your exit strategy locked before you close. Are you refinancing to a DSCR loan to hold as a rental? Selling outright? Lenders want to see a realistic timeline backed by contractor bids.
Interest reserves matter in Santa Monica where renovation costs run high. Make sure your loan includes enough holdback to cover monthly payments during construction.
Bridge loans work if you need 6-24 months and don't have major construction planned. They typically cost less than hard money but take longer to close.
Once renovations finish, most investors refinance into a DSCR loan to hold the property long-term. That switches you from 10% short-term debt to 7-8% permanent financing.
Construction loans make sense for ground-up projects or major additions. Hard money fills the gap for fix-and-flip deals that don't fit construction loan requirements.
Santa Monica's strict permitting process extends renovation timelines. Factor in 4-8 weeks just for plan approval before construction starts.
Rent control ordinances affect exit strategy calculations. Properties built before 1979 have restricted rental upside, which impacts refinance appraisals and DSCR loan eligibility.
Coastal Commission jurisdiction adds another approval layer for properties near the beach. We build extra timeline buffer into hard money terms for these locations.
The premium market means higher appraisal scrutiny. Lenders want recent comps within a tight radius, which can be challenging in neighborhoods with limited sales activity.
Most lenders can close in 7-14 days once you have a purchase contract and preliminary title work. Cash-like speed gives you an edge in competitive situations.
First-time flippers typically need a licensed contractor with a detailed scope of work. Experienced investors with proven track records have more flexibility.
Most lenders offer 6-12 month initial terms with extension options. Extensions typically cost 1-2 points plus continued monthly interest — budget for this possibility upfront.
Yes, hard money works well for rent-controlled acquisitions that don't qualify for DSCR loans. Plan your refinance exit carefully since rental income restrictions affect permanent financing.
Expect 8-14% interest rates plus 2-4 points at closing. Total cost runs significantly higher than conventional loans, but speed and flexibility justify it for time-sensitive deals.
Most lenders require 25-35% down depending on property condition and your experience level. Higher-risk projects push toward the upper end of that range.
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.