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Merced draws real estate investors for a reason. The Central Valley market offers lower entry prices than coastal California, making fix-and-flip math work.
Hard money loans are asset-based. The property's value drives approval — not your tax returns or W-2s.
6–24 months
Typical Loan Term
Up to 75% ARV
Max LTV (ARV-based)
25–35% typical
Down Payment
Asset-driven
Credit Emphasis
As fast as 7 days
Funding Speed
Hard Money Loans in Merced
Hard money lenders care most about the deal. They want to see after-repair value (ARV) — what the property is worth once renovations are done.
Most lenders want you to bring 25–35% of the purchase price as a down payment. Strong deals can sometimes reduce that requirement.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Merced.
Merced draws real estate investors for a reason. The Central Valley market offers lower entry prices than coastal California, making fix-and-flip math work.
Hard money loans are asset-based. The property's value drives approval — not your tax returns or W-2s.
Hard money lenders care most about the deal. They want to see after-repair value (ARV) — what the property is worth once renovations are done.
Hard money is a private lending space. Banks don't do these loans. You're borrowing from funds, private investors, or specialty lenders.
We work with 200+ wholesale lenders, including hard money sources active in the Central Valley. That reach matters when you're on a deadline.
The biggest mistake investors make: underestimating rehab costs in Merced. Scope creep kills margins. Nail your numbers before you borrow.
Hard money terms run 6–24 months. Have your exit strategy locked before you close — refinance into a DSCR loan or sell before the term ends.
Bridge loans and hard money loans are close cousins. Bridge loans usually apply to existing equity. Hard money focuses on acquisition and rehab.
DSCR loans are the long-term hold option. Investors often use hard money to buy and renovate, then refinance into a DSCR loan to hold the property.
Merced is a UC Merced college town. Student rental demand stays consistent, which supports the buy-renovate-rent strategy for investors.
Merced County property values are lower than the Bay Area. That means lower loan amounts — and faster repayment timelines that hard money handles well.
Many hard money lenders fund in 7–14 days. Speed depends on your documentation and property appraisal turnaround.
Credit matters less here than with conventional loans. Lenders focus on the deal — your down payment and the property's value.
Most hard money lenders in California lend up to 65–75% of ARV. The stronger the deal, the better your terms. Rates vary by borrower profile and market conditions.
Yes — many investors buy and renovate with hard money, then refinance into a DSCR loan for long-term hold. It's a common two-step strategy.
Hard money loans don't forgive missed deadlines. Plan your exit early — refinance or sell before the maturity date.
Some lenders charge a minimum interest period. Ask upfront — a few months of guaranteed interest is common in private lending.