Question 1

What credit score do I need for a hard money loan?

Accepted Answer

Hard money lenders don't have a minimum FICO. They focus on the property's value and your exit strategy. Some lenders want to see 600+ FICO as a sign of stability, but it's not a hard floor.

Question 2

How fast can hard money close in La Mesa?

Accepted Answer

Hard money typically closes in 5 to 10 business days. Some lenders move faster with clean deals and clear exit strategies. Conventional loans take 30 to 45 days. That speed is hard money's biggest advantage — and its biggest cost.

Question 3

What's the typical interest rate on a hard money loan?

Accepted Answer

Hard money rates in California typically range from 8% to 15%, depending on LTV, property condition, and lender. Lower LTV (more equity) gets lower rates. Higher LTV or problem properties cost more. Origination fees add 2% to 5% on top of the rate.

Question 4

Can I use hard money to buy my primary home?

Accepted Answer

Yes, but it's usually not the best choice. Hard money is designed for investors and non-traditional deals. If you're buying a primary home and can qualify for conventional or FHA, those programs cost far less over time.

Question 5

What happens if I can't repay the hard money loan on time?

Accepted Answer

Hard money loans have short terms — typically 6 to 24 months. If you can't repay or refinance, the lender can foreclose. That's why your exit strategy matters. Know how you'll repay before you borrow.

Hard Money Loans in La Mesa: Fast Funding for Non-Traditional Deals