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Redding's real estate market moves fast for investors and developers. Hard money lenders step in when traditional banks move too slowly or when a property doesn't fit conventional lending boxes.
Hard money loans carry higher rates and shorter terms than bank mortgages. You're paying for speed and flexibility, not a 30-year amortization.
8% to 15%
Typical Rate Range
7–14 days
Closing Timeline
20% to 30%
Down Payment
12–36 months
Loan Term
Hard Money Loans in Redding
Hard money lenders focus on the property and your equity, not your credit score or income. Most require 20% to 30% down payment and a solid exit strategy — refinance, sell, or lease. Your FICO score matters less than the deal itself.
Shasta County's median household income is $71,931. Hard money isn't about what you earn; it's about what the property is worth and how you'll repay the loan. Investors with limited W-2 income but strong real estate experience qualify easily.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Redding.
Redding's real estate market moves fast for investors and developers. Hard money lenders step in when traditional banks move too slowly or when a property doesn't fit conventional lending boxes.
Hard money loans carry higher rates and shorter terms than bank mortgages. You're paying for speed and flexibility, not a 30-year amortization.
Hard money lenders focus on the property and your equity, not your credit score or income. Most require 20% to 30% down payment and a solid exit strategy — refinance, sell, or lease. Your FICO score matters less than the deal itself.
California's hard money market is fragmented. Private lenders, hedge funds, and small lending groups compete on speed and deal flexibility. No single lender dominates; rates and terms vary widely based on loan-to-value and your track record.
Brokers connect you to multiple hard money sources at once. That competition drives better terms. Expect to pay 1 to 3 points upfront plus the interest rate. Prepayment penalties are common — read the fine print before signing.
Hard money makes sense in Redding when you're buying a fixer-upper, land, or a deal that needs fast capital. If you're a first-time buyer buying your own home, hard money is the wrong tool — conventional or FHA will cost far less over time.
The math works for investors. A $400,000 property at 10% hard money costs roughly $40,000 per year in interest alone. That's expensive money. But if the property appreciates or generates rental income, the speed and flexibility pay for themselves.
Hard money vs. conventional: conventional rates run 2% to 4% lower and amortize over 30 years. But conventional takes 30 to 45 days to close and requires strong credit and income.
Hard money vs. FHA: FHA is cheaper for owner-occupants buying a primary residence. FHA rates are lower and you can put down just 3.5%. Hard money is for investors and deals that don't fit FHA's owner-occupancy requirement.
Redding's real estate market includes rental properties, commercial buildings, and land deals. Investors here often use hard money to buy, renovate, and refinance into conventional loans.
Property values in Redding are lower than coastal California. That means your down payment goes further and your loan amount stays manageable. A $400,000 property with 25% down requires only $300,000 in hard money — a reasonable size for most lenders.
Hard money lenders focus on the property and your equity, not your credit. Most require 620+ FICO, but a strong deal with 30% down can close with lower scores. The property value matters more than your credit history.
Hard money typically closes in 7 to 14 days. Conventional loans take 30 to 45 days. Speed is the main reason investors use hard money — you can close before competing offers arrive.
Hard money rates run 8% to 15% depending on your equity position and the deal. Higher equity (30% down) gets lower rates. Lower equity (20% down) costs more. Expect to pay 1 to 3 points upfront as well.
You can, but you shouldn't. Hard money costs 8% to 15% annually — far more than conventional or FHA. For a primary residence, conventional or FHA will save you thousands. Hard money is designed for investors, not owner-occupants.
Most hard money loans run 12 to 36 months. At maturity, you refinance into a conventional loan, sell the property, or lease it for income. Your exit strategy must be clear before you borrow.