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Hard Money Loans in West Covina
West Covina's mix of older single-family homes and commercial corridors creates steady fix-and-flip opportunities. Hard money financing lets investors close on these deals in days, not weeks.
Properties near the Westfield West Covina mall and along Francisquito Avenue attract rehabbers targeting move-up buyers. Speed matters when competing against all-cash offers in this market.
Los Angeles County investors use hard money to acquire distressed properties that traditional lenders won't touch. These loans fund based on the property's after-repair value, not your tax returns.
Hard money lenders care about your exit strategy and the deal itself. They'll fund up to 70% of purchase price or 65% of after-repair value, whichever is lower.
No W-2s or tax returns required. Most lenders want 12-24 months of real estate experience and proof you can cover rehab costs.
Credit scores matter less than with bank loans, but expect scrutiny on foreclosures within the past two years. Your down payment proves skin in the game.
Hard money rates in West Covina run 9-14% with 2-4 points upfront. Cheaper than you think when you factor in speed and flexibility.
Local private lenders know Los Angeles County comps and approve deals faster than national funds. They understand which West Covina neighborhoods support the numbers.
Terms run 6-24 months. Most investors refinance into DSCR loans after renovations or sell the property outright.
We see West Covina investors use hard money for properties needing $50K+ in repairs. Anything less and the points eat your profit margin.
Your scope of work determines approval more than your credit score. Lenders want itemized rehab budgets, contractor bids, and realistic timelines.
The investors who succeed with hard money have their next three deals lined up. This isn't a one-time funding source—it's a business strategy.
Watch your holding costs. At 11% interest, every extra month costs you. Plan for a 6-month flip but budget for 9 months just in case.
Bridge loans offer similar speed but require better credit and lower rates. Hard money works when your profile or property doesn't qualify for bridge financing.
DSCR loans make sense for rental holds, but they take 3-4 weeks to close. Use hard money to acquire, then refinance into DSCR after stabilization.
Construction loans fund major rebuilds but require detailed plans and licensed contractors. Hard money gives you flexibility to manage your own rehab team.
West Covina permit fees and inspection timelines affect your holding period. Budget 4-6 weeks for city approvals on structural work.
Properties south of the 10 freeway typically need less work but sell faster. North of Interstate 10, you'll find better margins but longer hold times.
Los Angeles County transfer taxes add 0.45% to your acquisition costs. Factor this into your purchase price when calculating returns.
Most hard money lenders close in 7-14 days once you submit a complete application with property details and scope of work. Local lenders who know Los Angeles County can move even faster.
Expect to put down 30-35% of the purchase price. Lenders typically fund 65-70% loan-to-value on acquisition, with additional funds released during rehab based on completed work.
Hard money works for acquisition, but refinance into a DSCR loan within 12 months. Carrying hard money rates long-term kills your cash flow on rental properties.
Most want 12-24 months of investment experience or proof you're partnering with someone who has it. First-time flippers often need larger down payments or co-borrowers.
Most hard money loans include extension options at 1-2% of the loan amount per month. Plan your timeline conservatively and communicate early if you need more time.
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.