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Hard Money Loans in Sierra Madre
Sierra Madre's historic craftsman homes and hillside lots create strong fix-and-flip opportunities. Hard money loans fund these deals in days, not months.
Investors target pre-1950 properties needing full renovations. Traditional lenders won't touch these projects until work completes.
The city's small inventory and Los Angeles County location drive buyer demand. Quick closings matter when competing for distressed properties.
Hard money lenders care about the property value, not your W-2. Credit scores below 600 get approved if the deal makes sense.
Expect 60-75% loan-to-value on purchase price or after-repair value. You bring the rest as cash down payment.
Most lenders require proof you've completed at least one renovation. First-time flippers face higher rates or lower LTV.
Borrowers need an exit strategy before closing. Refinance timeline or buyer interest matters more than income documentation.
Los Angeles County has 40+ active hard money lenders. Rates range from 8% to 14% depending on deal quality and borrower experience.
Local lenders close faster than national funds because they know Sierra Madre comps. They've seen what renovated craftsmans sell for.
Points vary from 2 to 5 upfront. Lower rates mean higher points, higher rates mean fewer points at closing.
Bridge lenders often offer better terms than pure hard money if you already own investment properties. Shop both options.
Most Sierra Madre flips need foundation or hillside stabilization work. Budget an extra 15% beyond cosmetic estimates before lenders will fund.
Get your contractor licensed and insured before applying. Lenders want to see who's doing the work and their track record.
November through February brings lower rates as lenders compete for deals. Summer sees tighter money and higher points.
Never max out LTV on your first Sierra Madre project. These old homes hide expensive surprises behind lath and plaster.
Bridge loans cost 2-3% less than hard money but require existing property equity. Hard money works for first deals with no collateral.
DSCR loans offer lower rates around 7-9% for rental conversions. Use hard money for flips, DSCR for buy-and-hold strategies.
Construction loans through banks take 45-60 days to close. Hard money closes in a week when you need to act fast.
Conventional rehab loans like HomeStyle cap renovation costs at 75% of ARV. Hard money funds bigger overhauls.
Sierra Madre permits move slower than neighboring Pasadena or Arcadia. Factor 8-12 weeks for plan approval into your timeline.
Historical designations on some streets limit exterior changes. Confirm what you can modify before calculating after-repair value.
The city's hillside ordinance adds engineering costs for properties above certain slopes. Get a topo survey before making offers.
Los Angeles County building inspectors scrutinize foundation work on older homes. Use licensed engineers for any structural plans.
Most lenders approve 580+ if the deal pencils out. Your property equity and exit plan matter more than credit history.
Local hard money lenders close in 5-10 days with clear title. National lenders take 10-15 days on average.
Yes, if you have licensed engineer reports and contractor bids. Lenders add foundation costs to total project budget.
Most hard money loans run 12-18 months interest-only. Extensions cost 1-2 points if renovation takes longer.
First-time flippers qualify but pay 1-2% higher rates. Some lenders require partnering with experienced contractors.
Refinance into DSCR loan and rent the property, or extend hard money at additional cost. Plan exit before you close.
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.