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Hard Money Loans in San Juan Bautista
San Juan Bautista's historic character attracts investors targeting renovation projects. Old adobes and vintage properties often need quick closings that traditional lenders can't provide.
Hard money works here because you're buying on asset value, not your W-2. A fixer-upper near the mission can close in 7-10 days if the numbers work.
Most deals involve period homes needing substantial updates. Lenders focus on after-repair value, not current condition.
You need skin in the game. Most hard money lenders want 25-40% down depending on the project scope and your experience level.
Credit matters less than your track record. A 580 score can work if you've flipped properties before and the deal makes sense.
Lenders underwrite the exit strategy. They want to see how you'll refinance or sell within 12-24 months.
Not all hard money lenders touch rural San Benito County properties. We work with 15-20 who specifically fund here and understand local values.
Rates run 8-12% with 2-4 points upfront. That sounds expensive until you compare it to missing a deal or losing earnest money.
Some lenders cap at $2 million. Others go higher but want to see recent comparable sales in the immediate area.
Local private lenders sometimes beat institutional rates. They know San Juan Bautista and price deals faster.
I see investors blow deals by shopping hard money lenders themselves. They waste two weeks getting declined by lenders who don't fund in secondary markets.
The smart play is identifying your lender before you make offers. Some won't touch properties under $200K. Others specialize in small-town deals.
Watch the renovation budget closely. Lenders typically hold 100% of construction funds and release on inspection milestones.
Your exit matters more than anything. Lenders want proof you can refinance into DSCR or conventional, or sell at the projected price.
Hard money beats bridge loans when the property needs serious work. Bridge lenders want rentable condition. Hard money lenders don't care about habitability.
Once renovated, most borrowers refinance into DSCR loans at 7-8%. That's your long-term hold strategy after the flip is complete.
Construction loans require more documentation and longer timelines. Hard money closes faster with less paperwork, which matters in competitive situations.
San Juan Bautista has strict historic preservation rules in certain zones. Verify renovation plans comply before closing, as lenders won't fund restricted projects.
Comparable sales data is thin here. Lenders rely heavily on appraiser judgment for after-repair values on unique properties.
Title work takes longer in San Benito County. Build in extra time even though hard money lenders can fund quickly.
Water and septic issues kill deals. Get inspections done during your inspection period, not after you've paid points.
Most hard money loans close in 7-10 days once you have a purchase contract. Title work in San Benito County sometimes adds a few days compared to larger counties.
Expect 25-40% down depending on project scope and your experience. First-time flippers typically need more equity than experienced investors with proven track records.
Hard money is designed for investment properties and flips, not owner-occupied homes. You'd use conventional or FHA financing for a primary residence instead.
Rates run 8-12% with 2-4 points paid upfront. Your rate depends on loan-to-value ratio, experience level, and the specific property condition.
Credit matters less than with conventional loans. Scores as low as 580 can work if you have experience and strong deal fundamentals.
Lenders hold construction funds and release them at inspection milestones. You submit draw requests with proof of completed work, then they inspect and fund.
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.