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Newport Beach's luxury market moves fast. Multi-million dollar properties get snatched up before conventional financing can close. Hard money fills that gap when speed matters more than rate.
Investors here use hard money for fix-and-flip projects in Corona del Mar, tear-downs near the Peninsula, and value-add opportunities in Newport Heights. The barrier is cash, not credit score.
Hard Money Loans in Newport Beach
Lenders care about one thing: exit strategy. Show how you'll pay off the loan in 6-24 months through sale, refinance, or rental income. Your credit matters less than your plan.
Expect to put 20-30% down on the purchase price. Some lenders go higher on experienced investors with strong projects. Your FICO can be in the 500s if the deal makes sense.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Newport Beach.
Newport Beach's luxury market moves fast. Multi-million dollar properties get snatched up before conventional financing can close. Hard money fills that gap when speed matters more than rate.
Investors here use hard money for fix-and-flip projects in Corona del Mar, tear-downs near the Peninsula, and value-add opportunities in Newport Heights. The barrier is cash, not credit score.
Lenders care about one thing: exit strategy. Show how you'll pay off the loan in 6-24 months through sale, refinance, or rental income. Your credit matters less than your plan.
Orange County has dozens of hard money lenders, but not all fund in Newport Beach's price range. You need lenders comfortable with $2M+ deals and familiar with coastal property values.
Rates run 8-12% with 2-4 points upfront. Shop the points more than the rate since most borrowers hold these loans under 12 months. Some lenders waive prepayment penalties.
I see Newport Beach investors overpay when they use the first lender who says yes. Shop three quotes minimum. The spread between best and worst can be 3 points on a $3M loan.
Watch the fine print on rehab holdbacks. Some lenders release renovation funds in stages based on inspection. Others give you everything at close. That timeline affects your contractor schedule.
Bridge loans offer lower rates but require better credit and proof of income. DSCR loans work for rental properties but take longer to close. Hard money costs more because it requires less from you.
If your timeline exceeds 12 months, consider hard money to acquire then refinance into DSCR once the property's renovated and rented. That two-step approach beats holding expensive short-term debt.
Newport Beach permits can take 4-6 months for major renovations. Factor that into your loan term since most hard money is 12 months. You'll need an extension if permits drag.
Coastal Commission jurisdiction affects properties near the beach. Lenders familiar with Newport Beach know which deals face extra regulatory hurdles. Choose a lender who's funded here before.
Most hard money lenders close in 7-14 days once you have a clear title report and property appraisal. Cash-out refinances can close faster than purchases.
No. Hard money lenders focus on property value and your exit strategy. W-2 income, tax returns, and DTI ratios don't factor into approval decisions.
Most lenders offer extensions for 3-6 months at additional cost. Negotiate extension terms before closing to avoid surprises if permits or construction delays happen.
Rarely. Hard money is designed for investment properties and business purpose loans. Lenders avoid owner-occupied deals due to additional consumer protection regulations.
Not always, but experienced investors get better terms. First-time flippers should expect higher rates, more points, or larger down payments until they prove themselves.