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Hard Money Loans in Merced
Merced's investor market runs on speed. Foreclosures, estate sales, and distressed properties move fast here, and traditional financing takes too long.
Hard money loans close in 7-14 days based on property value, not credit scores. That speed advantage wins deals in a market where cash buyers dominate.
Lenders care about the property's after-repair value and your exit strategy. Credit scores matter less than the deal itself.
Expect to bring 20-30% down. Lenders fund based on ARV, not current condition, so the math needs to work on your flip or rental conversion.
Most hard money lenders focus on loan-to-value ratios between 65-75% of ARV. They'll fund purchase and some rehab costs if the deal supports it.
Local lenders who know Merced neighborhoods move faster than national funds. They understand which blocks support flips and which don't.
The borrowers who struggle are the ones without a clear exit plan. Lenders want to see you'll either sell or refinance into permanent financing within 12 months.
Merced fix-and-flip deals work best on properties under $400K. Above that, the numbers get tight because local rental rates don't support higher price points.
Bridge loans work for stabilized properties you're repositioning. Hard money handles distressed assets that need serious work before any conventional lender will touch them.
DSCR loans make sense once renovations are done and the property's rented. Use hard money to acquire and fix, then refinance into DSCR for long-term hold.
Merced County has strict permit requirements for major renovations. Factor permit timelines into your exit strategy because delays kill hard money deals.
The investor rental market centers around UC Merced student housing and agricultural worker rentals. Know your end buyer or tenant before you commit to a property.
Rates typically run 9-14% depending on deal quality and down payment. Rates vary by borrower profile and market conditions, but lower LTV ratios earn better pricing.
Yes, if the after-repair value supports the loan amount. Lenders require detailed contractor bids and may release rehab funds in draws as work progresses.
First-time flippers can qualify with a strong deal and higher down payment. Experienced investors get better terms, but the property quality matters most.
Most lenders offer 6-month extensions for a fee. Plan for contingency time because permit delays in Merced County are common on significant rehabs.
Yes, once renovations are complete and the property appraises at the new value. Many investors use DSCR loans for the refinance if keeping as rental.
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.