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Monterey's coastal real estate moves fast. Investors need capital that closes in days, not months.
Hard money loans are asset-based. The property secures the loan — your tax returns don't drive the decision.
7-14 Days
Typical Close Time
65-75%
Max LTV
High
Credit Flexibility
6-24 Months
Loan Term
Asset-Based
Approval Basis
Hard Money Loans in Monterey
Most hard money lenders want 25-35% equity or down payment. Loan-to-value (LTV) — how much you borrow vs. the property's value — typically caps at 65-75%.
Credit scores matter less here than with conventional loans. A solid deal with strong collateral can still close with a bruised credit profile.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Monterey.
Monterey's coastal real estate moves fast. Investors need capital that closes in days, not months.
Hard money loans are asset-based. The property secures the loan — your tax returns don't drive the decision.
Most hard money lenders want 25-35% equity or down payment. Loan-to-value (LTV) — how much you borrow vs. the property's value — typically caps at 65-75%.
Hard money lenders are private — not banks. Terms vary wildly between lenders, and so do fees.
We work with 200+ wholesale lenders, including private capital groups active in Monterey County. That means real options, not just one lender's terms.
The most common mistake investors make: they shop rate without comparing points and fees. A lower rate with 4 origination points can cost more than a higher rate with 2.
On short-term deals, total cost of capital matters more than rate. Know your exit before you close.
Bridge loans are similar but often target stabilized properties. Hard money works better for distressed or value-add deals needing fast, flexible terms.
DSCR loans — where approval hinges on rental income, not personal income — are better for long-term holds. Hard money is a short-term tool. Use it as one.
Monterey County has strict zoning and coastal commission regulations. Factor permitting timelines into your renovation budget — delays are real here.
Properties near the coast can carry higher insurance costs and stricter appraisal requirements. Your lender needs to know the local market. Many private lenders don't.
Many hard money deals close in 7-14 days. Speed depends on how quickly title clears and the property appraises.
Single-family, multi-family, and mixed-use properties typically qualify. Coastal or historic properties may need extra lender review.
Rates vary by borrower profile and market conditions. Hard money rates run significantly higher than conventional loans due to short terms and risk.
Yes — fix-and-flip is the most common hard money use case. Lenders will often lend against the after-repair value (ARV) of the property.
Most do, though some use broker price opinions (BPOs) for speed. Coastal Monterey properties often require full appraisals.
Terms typically run 6-24 months. These are short-term tools — not long-term financing solutions.