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East Palo Alto sits in San Mateo County, where the median household income of $156,000 supports homes in the $1.2 million range. Hard money lenders focus on speed and collateral, not income verification.
Hard money loans fund property flips, bridge purchases, and construction projects where traditional lenders won't move quickly enough. Rates run higher than conventional mortgages because the lender bears more risk.
7-14 days
Typical Close Timeline
8-12%
Interest Rate Range
20-30%
Typical Down Payment
600-650
Minimum FICO
2-4 points
Upfront Points
Hard Money Loans in East Palo Alto
Hard money lenders in California prioritize the property and equity position over credit scores. Most require 20-30% equity in the collateral or a strong exit strategy. FICO floors vary by lender but typically start around 600-650 for experienced investors.
Down payments run 20-40% depending on the property type and lender risk appetite. A $1,000,000 purchase might require $200,000-$400,000 down. Proof of funds and a clear investment plan matter more than W-2 income or tax returns.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in East Palo Alto.
East Palo Alto sits in San Mateo County, where the median household income of $156,000 supports homes in the $1.2 million range. Hard money lenders focus on speed and collateral, not income verification.
Hard money loans fund property flips, bridge purchases, and construction projects where traditional lenders won't move quickly enough. Rates run higher than conventional mortgages because the lender bears more risk.
Hard money lenders in California prioritize the property and equity position over credit scores. Most require 20-30% equity in the collateral or a strong exit strategy. FICO floors vary by lender but typically start around 600-650 for experienced investors.
California's hard money market splits between institutional lenders (REITs, private equity firms) and smaller portfolio lenders. Institutional shops close faster but charge higher rates. Smaller lenders offer more flexibility on terms but move slower.
Most hard money lenders in the Bay Area specialize in fix-and-flip or bridge financing. They underwrite based on after-repair value (ARV) and your exit plan. Closing typically takes 7-14 days once the appraisal is complete.
Hard money makes sense in East Palo Alto when you're buying a fixer-upper or need to close before a traditional lender can underwrite. The county's $156,000 median income doesn't reflect investor cash reserves.
Hard money doesn't make sense if you can qualify for a conventional mortgage. The rates and fees are steep — 8-12% interest plus 2-4 points is typical. Use it as a bridge, not a permanent solution.
Conventional loans run 2-3% lower in rate but require full income documentation and 20-30% down. Hard money closes in days; conventional takes 30-45 days. If you're buying a rental property that needs work, conventional won't fund until repairs are done.
FHA loans let you put down as little as 3.5% but carry lifetime mortgage insurance and strict property condition rules. Hard money has no insurance but higher rates. For investment properties, hard money is the only option — FHA is owner-occupied only.
Burlingame's 220 Park office tower just hit 100% occupancy with tenants like Confluent and Upstart. That kind of commercial momentum signals stable property values across San Mateo County.
Downtown San Mateo is adding fine dining — Reposado opened in February 2026. Neighborhood improvements attract renters and boost property appreciation. Hard money investors buying rental properties benefit from these local upgrades.
Most hard money lenders close in 7-14 days once the appraisal is complete. Conventional mortgages take 30-45 days. Speed is the main advantage — you can beat other cash offers on investment properties.
Hard money rates typically run 8-12% depending on the lender, loan-to-value ratio, and your experience. Add 2-4 points (upfront fees). These are much higher than conventional rates because the lender bears more risk.
Most hard money lenders require 20-30% down or equity in the collateral. Some will go lower if you have strong proof of funds and a clear exit strategy. The exact requirement depends on the property and your track record.
Yes. Hard money works well for rental properties, especially if the property needs repairs. Conventional lenders won't fund until work is done. Hard money funds the purchase and renovation, then you refinance into a conventional loan once stabilized.
You refinance into a conventional mortgage, sell the property, or use another exit strategy. Most hard money borrowers plan to refinance after 12-24 months once the property is stabilized. Lenders expect this — it's built into their underwriting.