Hard Money Loan California

Last updated: May 8, 2025

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OfferMarket is not NMLS licensed in California. To serve real estate investor clients in California, we operate as a rate shopping service and process your loan with the most competitive licensed capital provider on our platform.

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At OfferMarket, we’re here to help you unlock financial freedom through real estate investing across California — from the historic homes in Pasadena to the urban fixers in Oakland, the beachside rentals in Long Beach to inland gems in Riverside. We equip you with a full-service platform tailored to California investors:

💰 Private lending
☂️ Insurance rate comparison
🏚️ Off-market property sourcing

Our California Hard Money Loan program offers reliable, fast, and cost-effective financing for acquiring, rehabbing, or refinancing 1-4 unit residential investment properties. Whether your strategy is to flip for a profit or refinance into a long-term DSCR loan to build your rental portfolio, we’re ready to support your success.

Let’s explore what makes the OfferMarket Hard Money Loan ideal for California real estate investors.

What is a hard money loan?

A hard money loan is a short-term, asset-backed loan, secured by real estate — typically 1-4 unit residential properties — to fund purchases, rehabs, or cash-out refinances. These loans are known by many names in California investor circles: “bridge loan,” “fix and flip loan,” or even “rehab loan.” Regardless of the term, the goal remains the same — provide flexible capital quickly, with minimal red tape.

These loans are especially favored in California markets where speed and flexibility can make or break a deal — think off-market opportunities in Fresno or quick closings in San Diego's hot zip codes.

California Hard Money Loan Scenarios

Our California clients use hard money loans for a range of situations:

• Buying and renovating a fixer-upper — For example, acquiring an outdated duplex in Sacramento with plans to modernize and resell or lease.

• Refinancing after an all-cash purchase — You bought a distressed Bakersfield property with cash due to a motivated seller, now you want to pull equity and finish the rehab.

• Replacing an expiring loan mid-rehab — Your current lender wants out, but your project in Ventura still needs capital and time.

• Purchasing with no renovation required — Perhaps you secured a deal on an under-market condo in Irvine and plan to flip it “as-is.”

• Refinancing with no rehab plans — You want to access equity from a Santa Rosa property bought well below market without additional improvements.

• Post-rehab refinance — The project is complete, but you’re not ready to sell or refinance into a DSCR loan just yet.

How it works

A California hard money loan typically has two parts:

• Initial Advance – This is the portion of the loan used to fund your property acquisition. It’s wired directly to escrow at closing, helping you move quickly on opportunities across competitive markets like Los Angeles or San Diego.

• Construction Holdback – This is the part reserved for your rehab budget. As work is completed and verified, funds are disbursed to reimburse you.

Flexibility is built in. You can take just the initial advance without a rehab budget or only the construction holdback if you already own the property free and clear. Most California investors opt for both to maximize leverage and preserve cash flow — especially in high-cost areas like San Jose or the East Bay.

Some investors prefer to cover renovation costs out of pocket. Others may have already closed on a property in cash — say, a vacant triplex in Stockton — and now seek a construction holdback to fund their rehab.

Your exit strategy is key. You may plan to flip the property quickly or refinance it into a DSCR loan and rent it. California’s market often demands flexibility — an intended flip in Oakland may become a rental when demand shifts. A rental in Palm Springs might pivot to a sale when resale value spikes. The smart approach is to focus on properties with dual exit potential that allow you to react to changing conditions.

Who uses hard money loans?

Fix-and-Flip Investors

California flippers often rely on hard money loans to acquire distressed inventory and fund renovations. Whether you're rehabbing a craftsman bungalow in Highland Park or a 1970s fourplex in Bakersfield, OfferMarket is here to finance your vision.

Rental Property Investors (BRRRR)

If you're following the BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — in California’s dynamic rental markets (think Modesto, Sacramento, or parts of the Inland Empire), hard money loans give you the upfront leverage to reposition properties before transitioning to long-term financing.

* Ask us about our Fix and Rent bundle — a California-specific combo loan that includes a hard money loan for acquisition and rehab, followed by a discounted DSCR refinance.

Many California real estate investors adopt a hybrid strategy — flipping some properties, holding others. This adaptive model is what we see most often among our successful clients across the Golden State.

Next, I’ll move into the Hard Money Loan Program Guidelines (criteria and table), Project Eligibility, and Initial Advance sections — maintaining structure and rephrasing uniquely for California investors.

Continuing in the next message...

Here’s Part 3 of your California-focused landing page rewrite, covering the Hard Money Loan Program Guidelines, Project Eligibility, and Initial Advance sections — preserving all formatting, headings, and tables.

Hard Money Loan Program Guidelines

Project Eligibility

We’re committed to helping California investors thrive — not just lend and hope. Our priority is risk-managed growth, and that’s why fewer than 0.5% of our loans nationwide have ever required foreclosure. In California’s ever-changing market, managing rehab risk is critical.

We caution newer investors — especially in markets with high regulatory friction like San Francisco or Santa Monica — from taking on heavy or complex rehabs too soon. Extensive rehab jobs often suffer delays, cost overruns, and exposure to zoning or permitting backlogs that can affect even experienced investors.

Think of us as your lender, partner, and guide — here to help you build a solid foundation in the California real estate market with clear expectations and smart lending decisions.

Initial Advance

Your initial advance depends on your credit, experience, and project metrics. We look at the number of properties you’ve rehabbed in the last five years, how many you own now, and your overall financial profile.

A strong track record — particularly in California’s high-value markets — increases your leverage. Licensed Realtors, General Contractors, and Engineers in California often qualify for additional benefits.

If your contract purchase price exceeds the As Is valuation, your loan will be based on the lower As Is value.

Exit strategy also plays a role:

• For flip exits: Must show at least a 30% gross margin and $15,000 minimum projected profit.

• For rental exits: Post-repair DSCR must be 1.1 or better.

Planning a rural project — maybe a fixer farmhouse outside Redding? A higher experience level (Tier 3+) will be required and leverage may be capped.

Experience-based Tiers

Your California hard money loan terms are influenced by your experience level. Here's how we classify it:

Initial Advance by Tier

* Up to 85% available as an exception for California borrowers with outstanding credit and liquidity — especially helpful in high-cost metros like San Diego or Silicon Valley.

Adjustments to Initial Advance

These adjustments are designed to responsibly scale your leverage, especially in volatile or high-complexity markets like those in Northern California or the Central Valley.

Rehab Scope Classification

We use a four-tier system to categorize the intensity of your rehab based on cost versus purchase price:

*Note: “Lopsided” refers to projects where the rehab budget exceeds the As Is value or purchase price — common in undervalued areas like inland SoCal or older stock in LA County.

Rehab Scope Eligibility

This system is particularly important for investors planning projects in cities like Oakland, Fresno, or Anaheim, where local permitting, rent control, and zoning policies may influence your scope.

LTARV Limits

Your maximum Loan-To-After-Repair-Value (LTARV) depends on your experience and project scope. Here’s how that breaks down:

Whether you're updating a bungalow in Santa Ana or a duplex in Vallejo, your LTARV caps are guided by your track record and the project’s intensity.

LTFC Limits

Loan-To-Full-Cost (LTFC) caps apply to extensive rehabs where the rehab budget is equal to or greater than the purchase price or As Is value. These limits ensure you retain sufficient skin in the game:

These limits matter most in older California cities like Stockton or Modesto, where rehab costs can easily eclipse property values.

Example: No Experience

• Purchase price: $100,000

• Tier: 1 (0 similar verifiable experience)

• Credit score: 695

• Rehab budget: $24,000

• ARV: $150,000

• Initial advance: $75,000 (75%)

• Construction holdback: $24,000

• Total loan amount: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest accrual: Full boat

Example: No Experience, Excellent Credit

• Purchase price: $100,000

• Tier: 1

• Credit score: 750

• Rehab budget: $24,000

• ARV: $150,000

• Initial advance: $80,000 (80%)

• Construction holdback: $24,000

• Total loan amount: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest accrual: As disbursed

Example: 5 Verified Projects

• Purchase price: $100,000

• Tier: 4 (5 similar verifiable projects)

• Credit score: 750

• Rehab budget: $20,000

• ARV: $150,000

• Initial advance: $90,000 (90%)

• Construction holdback: $20,000

• Total loan amount: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest accrual: As disbursed

Refinance Using As Is Value Instead of Cost Basis

In California’s appreciation-prone markets — like Orange County or Oakland — you may own properties that are now worth significantly more than your initial cost basis. In those cases, we offer flexibility to lend based on the As Is value (instead of just cost basis), provided:

• Property is at least 3 years seasoned

• Property is habitable (C4 condition or better)

• Credit score is 680+

• Tier 3 experience or higher (4+ completed rehabs)

• Prior loan has no late fees or penalties

• Market comps clearly support the valuation

We’ll require strong documentation to validate this approach, but it allows investors in equity-rich California markets to unlock more capital without selling.

Wholesaler & Assignment Fee Guidelines

California is a hotspot for wholesalers — from the Central Valley to the San Gabriel Valley. If your deal involves an assignment or double close:

• The full fee can be included if it’s ≤ 20% of original purchase price

• Example:

  • A–B Contract: $100,000

  • B–C Assignment Fee: $25,000

  • As Is Value: $125,000

  • Value basis for advance: $120,000 (capped)

Guidelines:

• Must be arm’s length

• Must provide full contract chain (A–B and B–C)

• Assignment over 20% of A–B price will not be financed

• MLS-listed properties may be ineligible for fee inclusion

• No financing of finder’s fees or referral commissions

This ensures transparency and keeps California deals compliant — especially in cities like Fresno, Anaheim, or San Bernardino, where wholesaler margins can swing widely.

Construction Holdback

Your construction holdback — used to fund renovation work — is disbursed through a draw reimbursement process. Whether you're updating a hillside property in Glendale or modernizing a duplex in Sacramento, we keep the process efficient.

You can opt out of a construction holdback if you have the liquidity to fund the rehab yourself. However, most investors in California prefer the added flexibility of accessing capital during the project.

For loans over $100,000, interest only accrues as disbursed, meaning you’re not charged on undrawn holdback funds — a major cash flow advantage in high-cost rehab markets like San Jose or Berkeley.

Appraisal and In-house Valuation

We require a valuation on every loan. Depending on the deal, we’ll use an interior appraisal, exterior appraisal, or in-house valuation — whichever fits best.

In-house valuation eligibility:

In most urban California settings, you’ll qualify for an interior or exterior appraisal instead.

Exterior appraisal accepted for:

• REO sales

• Foreclosure auctions

• Bankruptcy or sheriff sales

• Online auctions

Note: Must be dated within 120 days of settlement, or re-certified if up to 180.

Interior Appraisal

If your scenario doesn’t fit the in-house or exterior appraisal criteria, you’ll need a full interior appraisal.

We handle ordering and payment through our appraisal management system. Your invoice must be paid before the process moves forward.

Appraisal Transfer

Already ordered an appraisal elsewhere? We can accept a transfer if:

• It was ordered via an approved AMC

• It’s < 180 days old

• Includes signed transfer letter affirming AIR compliance

• You provide the original appraisal PDF, XML, and invoice

Scenario: Stabilized Hard Money Loan

If your California property is clean and rental-ready (C4 condition or better), we offer stabilized lending — up to 75% of the As Is value.

This is ideal for markets like Riverside or Chula Vista where the property may need little to no work.

Key Loan Details

Extensions

We want your California projects to succeed on time — but life happens. If you need extra time, here’s how extensions work:

Extension Fee Schedule:

Must maintain active builder’s risk insurance during the extension period.

Ineligible Property Types

We do not finance:

• Mixed-use

• 5+ unit multifamily

• Co-ops or condotels

• Mobile homes

• Cabins or log homes

• Properties with oil/gas leases

• Farms, ranches, orchards

• Vacation rentals or luxury “statement” properties

• Properties on unpaved roads

These limitations ensure we focus on residential investments that align with your strategy — especially in California's high-density, high-demand areas.

Exception Scenarios

We may still fund deals with:

• 660–679 credit scores (with reserves)

• Leaseholds with ground rent

• Small SFRs (500–699 sq ft)

• 2–4 units with sub-500 sq ft units

• Financed interest

• Non-arm’s length transactions

• Assignments within acceptable limits

Each case is reviewed individually with a California market lens — we’ll work with you if the numbers and narrative make sense.

Borrower and Guarantor Requirements

Liquidity Verification

To ensure you’re financially prepared for your California real estate investment, we verify that your guarantors have access to enough liquid capital to comfortably close and execute the rehab. Specifically, you must show funds that cover:

• Your estimated cash to close, and

• At least 25% of your projected rehab budget

This helps protect your project from delays or shortfalls — which is especially important in California markets like Los Angeles, where materials, labor, and timelines can fluctuate.

Eligible Liquid Assets

We accept a wide range of asset types for liquidity verification:

• Bank accounts (personal, business, or in the name of your LLC)

• Brokerage accounts (personal or entity-owned)

• Retirement accounts (we apply a 50% reduction due to restricted access)

We also accept funds in newly opened accounts — no seasoning period is required. You will need to provide the two most recent statements for each account.

If funds are in a business or alternate-entity account, we’ll request the operating agreement to confirm ownership.

Important Notes:

• You do not need to transfer funds into a specific account before closing

• Liquidity is verified through documentation only — no movement of money required until closing day

• Cash to close is wired directly to the title company or attorney handling settlement

This process helps maintain financial stability through your project lifecycle — from your first property in Riverside to scaling a portfolio in Sacramento.

Credit and Background

Interest Reserves

In some California hard money loan scenarios, we collect interest reserves — a portion of the expected interest payments — at closing. These funds are held in escrow and applied toward your monthly interest as it accrues. This feature can protect your liquidity and streamline your cash flow.

This is particularly useful for California investors managing multiple projects across cities like Bakersfield, Riverside, or Vallejo — where frontloading liquidity allows you to stay nimble.

Financed Interest Payments

In select situations, we may allow you to finance your interest payments rather than pay monthly. This means interest is added to your payoff balance, not deducted from your bank account during the life of the loan.

Example:

• Loan Amount: $100,000

• Interest Rate: 12%

• Months Held: 9

• Accrued Interest: $9,000

You’ll see this at payoff as:

• Unpaid Principal: $100,000

• Unpaid Interest: $9,000

This structure benefits California investors tackling fast-turn rehabs in expensive markets like San Francisco, where project cash flow is king.

Property Sourcing Guidelines

If you're acquiring properties across California — whether in off-market deals, probate sales, or auctions — certain documentation will be required to validate deal structure and reduce risk:

• New market purchases must include either:

  • A signed General Contractor agreement, or

  • A Letter of Explanation detailing why no GC is needed

• Wholesale transactions must include:

  • A-to-B and B-to-C contracts

  • Operating agreement of the wholesaler

  • Assignment fees capped at 20% markup

• High-scope rehabs, conversions, or condos:

  • May require letters from architects, engineers, or permits depending on local zoning rules (especially in Los Angeles, San Jose, or Oakland)

To move fast and avoid delays, make sure to upload:

• Purchase agreements

• Settlement statements

• Payoff letters (if refi)

• Track record and entity docs

Insurance Guidelines for Hard Money Loans

You’ll need insurance that covers both the structure and your liability during the term of your California hard money loan. This includes:

Coverage Requirements:

💡 California Tip: Once you take ownership, immediately install smoke detectors, locks, and security cameras to meet insurance policy standards and reduce claim denials.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

We actively lend in California and across the U.S. In California, we fund deals in all regions — whether you're flipping a duplex in Sacramento, rehabbing a bungalow in Long Beach, or refinancing a portfolio in Fresno.
Some states are served through partner lenders, but in California, we offer direct lending.

Can I have more than one hard money loan at a time?

Yes. It’s common for our California investors to carry multiple projects simultaneously. However, we monb

Are hard money loans considered commercial?

Yes. Hard money loans are business-purpose commercial loans. They are issued to an entity (LLC or Corporation) and not intended for primary residence financing.

What is the minimum loan amount?

$25,000 is our minimum, which is helpful for lower-price point properties in markets like Stockton, Bakersfield, or San Bernardino.

What property types are eligible?

We finance non-owner occupied 1–4 unit residential properties, including:

• Single-family homes

• Townhouses

• Condominiums

• 2–4 unit multifamily

• Planned Unit Developments (PUDs)

Mixed-use and larger properties are funded through separate programs.

How is Loan-To-Value (LTV) calculated?

We calculate LTV based on the As Is value. LTARV (Loan-To-After-Repair-Value) is the ratio of your total loan amount (initial advance + rehab) to the projected ARV based on appraisal.

What are the credit score requirements?

We require a minimum FICO of 680. In some cases, borrowers with scores between 660 and 679 may be approved with additional reserves or exceptions.

Is real estate experience required?

Not at all. Many California investors fund their first deals with us. That said, more experience means better leverage under our Tier system.

Do wholesaler deals count toward my experience?

No. Wholesaling doesn't count toward your experience tier because you weren’t financially responsible for renovation or ownership.

What documentation is needed?

Our Loan File system makes it easy to upload and manage your required documents. For both purchase and refinance transactions in California, the following will be required:

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1 million?

Yes. Loans exceeding $1,000,000 — up to our $2M max — are underwritten with additional criteria to manage higher risk, particularly in fluctuating California markets.

Glossary of Key Terms

Instant Hard Money Loan Quote

OfferMarket Capital LLC is proud to serve California’s dynamic real estate investing community — from flips in Orange County to BRRRRs in the Central Valley.

We’re a direct lender for 1–4 unit residential investment properties, and we specialize in fast, flexible hard money loans and DSCR financing.

Thousands of investors nationwide rely on OfferMarket. Now, it’s your turn.

Get your California hard money loan quote today.
It’s fast, easy — and it could unlock your next great deal.

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