Loading
Hard Money Loans in Hollister
Hollister's investor market runs on speed. Fix-and-flip deals and distressed properties don't wait for 45-day conventional approvals.
Hard money fills that gap. These asset-based loans fund in 7-14 days based on property value, not your W-2 or tax returns.
Most Hollister investors use hard money for purchases needing immediate closings or heavy rehab projects traditional lenders won't touch.
Hard money lenders care about one thing: the property's after-repair value. Your credit score matters less than your exit strategy.
Most lenders want 65-75% loan-to-value based on ARV. You bring 25-35% down plus closing costs and rehab reserves.
No tax returns, no employment verification. Lenders review your renovation plan and proof you can execute the flip or refinance.
Credit minimums run 580-600, sometimes lower if the deal and experience level make sense.
Hard money rates in San Benito County run 9-14% with 2-4 points upfront. Higher than traditional loans because you're paying for speed and flexibility.
Terms run 6-24 months. Most investors refinance into DSCR loans once rehab finishes or sell the property outright.
Not all hard money lenders operate in smaller markets like Hollister. You need a broker who works with lenders comfortable outside metro areas.
Local relationship lenders sometimes offer better rates but slower closings. National lenders cost more but move faster and have higher loan limits.
We see three scenarios where hard money makes sense in Hollister: foreclosure auctions requiring all-cash offers, properties needing foundation or structural work, and investors maxed on conventional financing.
Your biggest cost isn't the rate. It's holding time. Every month you carry hard money bleeds profit from your flip.
Have your exit locked before closing. Know your takeout refinance numbers or list price. Hard money works when you execute fast.
Many first-time flippers underestimate rehab timelines. Build in three extra months of interest when calculating your budget.
Hard money vs. bridge loans: Bridge loans offer lower rates but require better credit and proof of exit financing. Hard money asks fewer questions.
Once your flip finishes, most investors refinance into DSCR loans at 7-9%. That drops your payment and lets you hold as a rental.
Construction loans work for ground-up builds but take 30-45 days to close. Hard money funds faster for gut rehabs on existing structures.
Investor cash-out refinances can replace hard money if you own the property free and clear, but that's rarely the case in acquisition scenarios.
Hollister's smaller market means fewer comps and more conservative ARV calculations. Lenders discount projections more than in San Jose or Monterey.
Permit timelines in San Benito County run longer than metro areas. Factor that into your holding costs when budgeting interest.
Exit buyers here tend to be owner-occupants, not investors. Your flip finish level needs to match retail expectations, not rental grade.
Properties near downtown Hollister or newer developments flip faster. Rural parcels can sit longer, eating into your hard money budget.
Most deals close in 7-14 days once you have a purchase contract and property details. Cash-out refinances on properties you already own can fund even faster.
Not always, but first-time flippers pay higher rates and need larger down payments. Lenders want to see a solid contractor and realistic budget.
Most hard money loans allow extensions for a fee, typically 1-2 points plus continued interest. Plan extensions into your initial budget to avoid scrambling.
Technically yes, but it rarely makes sense. Rates and fees eat any urgency benefit unless you're competing against all-cash offers in extreme situations.
Expect to show 100% of your renovation budget in reserves at closing. Lenders release funds in draws as work completes, not upfront.
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.