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Hard Money Loans in San Diego
San Diego's competitive fix-and-flip market moves fast. Hard money loans close in 7-14 days when you need to beat cash offers on distressed properties.
Coastal teardowns and multi-unit conversions drive most hard money activity here. Lenders focus on after-repair value, not your tax returns or W-2s.
North Park, City Heights, and Chula Vista see heavy investor action. Properties under $800K with clear value-add potential get funded fastest.
Most San Diego hard money deals close at 65-75% loan-to-value. You bring 25-35% down, lenders care about the property, not your debt-to-income ratio.
You need skin in the game. Expect to put down 25-35% on the purchase price plus hold renovation funds in reserve.
Lenders order a quick appraisal focused on after-repair value. Your contractor's scope of work and rehab budget matter more than your FICO score.
Credit over 600 helps but isn't a dealbreaker. Lenders care more about your exit strategy—will you refinance into conventional or sell within 12 months?
First-time flippers get scrutinized harder. A general contractor on your team and detailed comps showing ARV improve approval odds significantly.
San Diego has 30+ active hard money lenders. Rates range from 8.5% to 13% depending on experience level and deal complexity.
Local portfolio lenders move fastest but cap out around $1.5M. National platforms like Kiavi and Lima One handle larger projects up to $3M.
Points vary wildly—2 to 5 points upfront is standard. Experienced flippers with multiple exits sometimes negotiate down to 1.5 points.
Watch for prepayment penalties disguised as 'minimum interest charges.' Some lenders require 6 months interest even if you exit in 90 days.
I've seen San Diego investors lose deals negotiating hard money rates. Speed matters more than saving 50 basis points when you're competing against cash.
The ARV appraisal makes or breaks these loans. Use comps from the last 90 days in the same zip code, not optimistic listings from La Jolla.
Renovation holdbacks trip up new flippers. Lenders release rehab funds in draws tied to inspection milestones—you can't access everything upfront.
Your exit strategy needs numbers, not hope. Show me refinance options at 75% LTV or recent sold comps proving your profit margin.
DSCR loans beat hard money if you're buying rental property to hold. Why pay 11% when you can get 7.5% with 12 months bank statements?
Bridge loans work for owner-occupants needing to buy before selling. Hard money makes sense only for investor deals with quick flips planned.
Construction loans from banks take 45 days and require detailed plans. Hard money funds in 2 weeks but costs 4-6% more annually.
Conventional investor loans need 15-25% down with full income docs. Hard money requires more down but zero income verification.
San Diego permit timelines affect your holding costs. City Heights and National City move faster than La Jolla or Coronado for approvals.
Coastal Commission jurisdiction adds months to projects west of I-5. Hard money rates compound daily—coastal delays kill profit margins fast.
The city's strict ADU and short-term rental rules impact ARV assumptions. Verify zoning before ordering appraisals or you'll get declined.
Lenders blacklist certain neighborhoods with high crime or low absorption rates. Paradise Hills and parts of Southeast San Diego get flagged often.
Experienced investors with clean title close in 7-10 days. First-time flippers typically need 14 days for appraisal and contractor review.
Most lenders want 600+ but focus more on your down payment and deal quality. Sub-600 scores get approved with larger down payments.
No. Hard money is for investment properties only. You need conventional or FHA financing for owner-occupied purchases.
12 months is standard. You can extend 3-6 months for a fee, but lenders expect you to sell or refinance within a year.
No. These are asset-based loans focused on property value and your exit plan, not W-2s or tax returns.
Typically 65-75% of purchase price or ARV, whichever is lower. You need cash for the gap plus renovation budget and reserves.
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.