Hard Money Loans in San Jose
We offer commercial and residential hard money loans, bridge loans, and owner-occupied loans to real estate investors, realtors, and mortgage brokers in San Jose, CA.
Why Choose Us for Hard Money Loans in San Jose?
For more than two decades, Ryker Capital has been providing everything from residential hard money loans in San Jose to owner-occupied loans in San Jose and surrounding areas. In addition, if you are new to investing in property, we can help educate you on the different hard money loan types available, so you can make more informed decisions when choosing the best options for you to purchase a new property in San Jose.
With over a million inhabitants, San Jose is one of the California Bay area’s major hubs. Each year, hundreds of new units are built and the neighborhoods continue to grow. This is why investing in property in San Jose is a wise choice for realtors, real estate investors, and mortgage brokers.
Hard Money Loan Rates in San Jose
Rates from 7-12% 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).
San Jose 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
It's Your Turn to Invest in San Jose, CA., Properties
Currently, the real estate industry in San Jose is booming, whereas rental properties are extremely hot investments. This is because a lot of Californians aren’t able to afford to buy property at this time, so they are renting instead. Thus, San Jose neighborhoods are expected to grow and flourish over the next several years. Therefore, the time is right for investing in property in the region.
Hard money loans are much easier to get in San Jose than bank loans that make you jump through hoops. And because you are using real property as collateral for residential hard money loans in San Jose, private moneylenders are not so concerned about your credit score or income verification.
Ryker Capital offers a variety of hard money loan types in San Jose, CA, and surrounding areas. Loans we offer include bridge loans, owner-occupied loans, and residential and commercial hard money loans in San Jose. This is a short-term bridge loan that lasts around a year and can provide you with the funds you need to finance your next investment project in the San Jose area.
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. All other California counties on a case by case basis. Outside of California, I have 2 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 non-owner occupied properties. I will also lend on owner occupied SFR properties on a limited case-by case basis. 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 a Commercial Hard Money Loans in San Jose
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.
What Is a Hard Money Loan?
A hard money loan is a type of loan provided to you by companies or private lenders that are not involved with any kind of financial institution. These are short-term loans with higher interest rates than bank loans, secured by property, which is referred to as collateral.
Bank loans may have lower interest rates and longer terms, but many people avoid them for several reasons. Not only do you need an excellent credit rating to qualify, but a verifiable financial history is also required to be eligible for a bank loan in San Jose. And even if you are approved, it can take months for the approved funds to be useable. While a bank is mainly concerned about your credit score, a hard money lender is more interested in the equity of your property.