Hard Money Loans in California
We offer residential and commercial hard money loans, owner-occupied loans, and bridge loans to realtors, mortgage brokers, and real estate investors in California.
Hard Money Loan Market in California
The hard money loans market in California is among the largest in the nation. California represents the most active residential single-family real estate market in America. This is due to more than 15 million units of housing in the state. California real estate is also the most valuable market for real estate in the nation. The highest median prices of homes average at $500,000, which is around twice the national average.
The high value of California’s single-family homes creates lucrative opportunities for house-flipping. This gives hard money borrowers the ability to get great deals.
Ryker Capital is a hard money lender in California. We provide commercial and residential hard money loans to borrowers who wouldn’t qualify for a conventional bank loan.
California Hard Money Loan Rates
Rates from 7.99-12% with points starting at 1.5-3.5% of the loan amount.
1st, 2nd, and 3rd mortgages (case by case).
Loans up to 75% of the purchase price, appraised value, or Broker opinion of value
No Minimum Fico scores as we look at credit history.
Higher LTV”s on a case by case basis. (PLEASE, NO ARV LOAN REQUESTS on SFR PROPERTIES).
California Hard Money Loan Program
Loan Application Approval Timeline
Same day approval on your loan available
No appraisal fees (in most situations) and no hidden junk fees
6 to 36 months
Time to Fund Loan
As few as 3-5 days if needed
Loan to Value (LTV)
Up to 75% of current value of property
What are California Real Estate Hard Money Loans?
Hard money loans for real estate projects in California are asset-based, include short-term financing, and are secured by the borrower's occupied non-owner property. These loans are also known as bridge loans. Rather than a credit union or traditional bank, they are generally funded by a private lender.
Hard money private lenders in California provide loans for business purposes to borrowers that use their non-owner-occupied property as collateral. Private lenders are capable of providing quick financing on properties with equity or current cash flow. Therefore, they often come with higher interest rates than conventional banks.
When assessing a borrower's qualifications for a hard money loan, private lenders use loan-to-value (LTV). This means they divide the loan amount by the property value.
All of California, with specific emphasis on the SF Bay Area, Lake Tahoe, Sacramento County, Ventura County, Santa Barbara County, Los Angeles County, Orange County, and San Diego County. Outside of California, I have 1 million dollar minimum loan size requirement. I will lend on purchase or refinance transactions for all types of commercial properties and SFR 1-4 unit owner and non-owner occupied properties. Check list of our lending areas here.
Lendable Property Types
Commercial, multifamily/apartment buildings, mixed use, SFR 1-4 units, condos/townhomes, office, industrial, retail, and medical buildings. Special use, land, and construction on a case by case basis. Discounted note payoffs (1 million and up, no bulk), DIP loans, and bankruptcy buyouts on a case by case basis.
Fast and Easy Process for Hard Money Loans in California
Applying for a commercial hard money loan is pretty straightforward. Here is a sample process:
Contact me over the phone. You can reach me at 415-793-3403. You can also send an email at Kevin@rykercapital.com, so you can schedule an initial consultation.
Pre-Qualification: Before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, the lender gathers information about the borrower and property being used as collateral for the loan. The property itself is typically the single most important factor when determining whether or not to move forward in the loan process. Other factors, to a lesser degree, include borrower credit and financial stability.
Filling Out a Loan Application: This is where the application really starts. For some other types of loans, the application takes place a day or two after your pre-qualification. For commercial hard money loans, the application takes place on the same day. The lender will ask you for authorization to check your credit rating (in case it’s required), a letter of explanation stating the purpose of the loan, and bank statements or financial statements as proof of affordability. The lender is required to give you a Good Faith Estimate (GFE). The GFE estimates the loan costs, and it’s required to be given to you no later than three days after your application. Also, a Truth in Lending (TIL) statement must be given to you by the lender. This is a disclosure of the loan’s terms and the interest rate charged for the loan.
Processing: Once the application is finished, your loan will begin processing. If it’s required, your credit report will be ordered, and the appraisal on the property that will be used as collateral for the loan is completed. This information — along with verification of employment, income, and assets — will be used to determine if you qualify for the loan. After collecting all requirements, the processor will then submit all the documents to the underwriter for review.
Underwriting: The underwriter assesses whether the risk of lending to you is acceptable. They will review all of the documentation collected by the processor and determine whether or not to approve your loan. If it’s approved, they will also determine what interest rate you qualify for as well as the terms of your loan.
There are three Cs’ that an underwriter will analyze:
Credit: Your score, history of on-time payments, and how much debt you carry (your debt to income ratio)
Capacity: Your ability to pay off your mortgage based on your monthly income and bills
Collateral/Value: If the property is worth as much or more than the amount you’re borrowing
On a typical loan, these three Cs’ are analyzed in detail during the underwriting process. The good news for hard money loans is that underwriters focus more on the collateral value rather than your capacity or credit, making it easier to get approved.
Approval: Once approved, you will be provided with a commitment letter that tells you all the terms and conditions of your loan. It is important to review and go through this letter with your lender to make sure you understand everything. You will typically need to purchase insurance that covers damage, fire, and theft before the loan closes.
Closing: The final stage is where you will sign all the loan documents and pay any closing costs. The process is similar to when you are applying for a loan. After your lender signs all the documents, an escrow agent will hold onto the loan until everything is paid off.
Why We’re Your Best Choice for California Hard Money Loans
Since 2008, Ryker Capital has been around serving areas in California, including the Bay Area, San Francisco, San Jose, and Los Angeles. We provide a variety of hard money loan types, such as commercial and residential hard money loans, bridge loans, and owner-occupied loans.
We also use our many years of industry experience to educate those just breaking into the real estate business. Knowing the different loan types available to you can help you make the right choices to be successful.
Because more and more people are passing on home ownership in California and choosing to rent homes instead, the doors are opening for property investors to jump in and take advantage of the situation. Whether you are a mortgage broker, realtor, real estate investor, or similar, we can help you gain the capital you need for financing. While others wait weeks or even months to get approved for a traditional bank loan, we put you ahead of the markets with a fast and easy hard money loan.