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Hard Money Loans in Loomis
Loomis sits in Placer County where investor activity runs high on properties ranging from historic downtown buildings to rural acreage. Hard money loans fund these deals in days, not months, when opportunity knocks.
Traditional lenders stall on non-owner-occupied properties, especially those needing work. Asset-based lending looks at the property's value potential, not your tax returns or employment history.
Most Loomis hard money deals involve quick-close acquisitions or renovation projects where timing determines profitability. You're competing with cash buyers, so speed matters more than rate shopping.
Hard money lenders care about three things: the property's current value, its after-repair value, and your exit strategy. They'll lend 65-75% of current value or 50-65% of ARV depending on the deal structure.
Credit matters less than conventional loans, but expect scrutiny below 600. Most lenders want to see you've completed projects before or have a clear plan to refinance or sell within 12-18 months.
You need skin in the game. Expect to bring 25-35% down payment plus holding reserves. These loans don't work for borrowers counting on zero down or tapping every dollar of equity.
SRK CAPITAL connects you with hard money lenders who actually fund in Placer County. Many advertised lenders cherry-pick coastal markets and ghost on suburban deals or rural properties.
Rates run 9-14% with 2-4 points upfront. That sounds expensive until you calculate what waiting 45 days costs when you're losing a property to a cash offer.
We see lenders who specialize in different niches: some fund land deals, others won't touch anything without utilities. Matching your project to the right lender saves weeks of back-and-forth denials.
Half the Loomis hard money deals I see should have been DSCR loans instead. Investors hear 'rental property' and assume they need hard money when a DSCR loan costs 6-8% with 30-year terms.
Use hard money for what it's built for: quick closes on distressed properties you'll renovate and either sell or refinance within a year. If you're buying a turnkey rental, you're overpaying by 3-6% annually.
The biggest mistake is not planning your exit before you close. Lenders want to see you've contacted long-term refinance options or have market data supporting your sale timeline. Vague plans kill deals.
Bridge loans offer similar speed but typically require better credit and cost slightly less. They work when you're between properties but don't need construction funds or major repairs.
DSCR loans take 2-3 weeks but cost half as much and give you 30 years to repay. If the property already generates rent or could with minor updates, that's your better path.
Construction loans fund rehabs but require detailed budgets, draws, and inspections. Hard money lenders care less about your contractor's license and more about whether the numbers work.
Placer County properties outside incorporated areas can hit appraisal delays that kill hard money timelines. Well water, septic systems, and easement issues slow down what should be fast funding.
Loomis zoning allows horse properties and larger lots that don't comp easily. Your hard money lender needs experience with rural residential or you'll get lowball valuations that wreck your loan-to-value.
Permit timelines in Placer County run longer than Sacramento. Factor that into your exit strategy since your 12-month hard money loan might cover 8 months of actual renovation time after permitting.
Most deals close in 5-10 business days once you have a purchase contract and property access for appraisal. Rural properties with well/septic may add 2-3 days for inspections.
Most lenders want 600+ but focus primarily on the deal itself. Lower scores get approved but expect higher rates and lower loan-to-value ratios.
Hard money is designed for investment properties and business purposes. Owner-occupied purchases need conventional, FHA, or other residential loan programs.
Most lenders offer 6-month extensions for a fee, typically 1-2 points. Plan your exit before closing since extensions aren't guaranteed and add significant cost.
No income verification required. Lenders evaluate the property's value, your down payment, and your exit plan rather than employment or tax returns.
Most hard money lenders fund up to $3-5 million depending on property type and borrower experience. Larger deals exist but require established investor track records.
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.