Hard money lending has been changing over the past few years. As the market improves, the loan products we are able to offer have also improved. One of the biggest improvements has to do with max loan to value ratios on individual properties. Only a couple years ago we were capping loan to value ratios at 60-65%, but today we have California hard money loans that can go as high as 80% loan to value!
Not every loan will qualify for an 80% LTV, that is the top of the mark for us right now, but many loans we are seeing will qualify for between 70-80% loan to value. In addition, rates at these levels can potentially be in the single digits. While credit does not dictate most loan terms, some of our higher loan to value options do require minimum credit scores ranging from 600-650. Others will have significantly better pricing with credit above the 600 threshold. Even with credit below 600, though, we are able to help with most property types at aggressive loan to value ratios.
In addition to being able to offer loans with LTV ratios as high as 80%, we are also able to offer loans based on the future value of a property, up to 75% of the as complete value in some cases. These loans are typically for fix and flip transactions, but they can also be used for construction and construction completion projects. Rates on these types of loans will be higher than those based on the as is value of a property, but with some of our experience based pricing programs we can still offer rates dipping into the single digits for experienced real estate investors.
If you are looking for a hard money loan in California, give us a call today. We are happy to discuss your loan scenario and options. Usually we can give you a good idea of whether we can help with a brief 10 minute conversation. You can reach us directly at 877 462 3422.
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