Over the past ten years, I've seen hard money loan criteria fluctuate from super aggressive to ultra conservative. With the continued strong real estate market, we are again seeing some aggressive hard money loan products here in California. One such product that has been popular lately is our California hard money purchase loans to 80%.
On a purchase of a fix and flip transaction it is common to get total funding of short term money at or above 80% of the purchase price. This is typically done through a loan that combines interest reserves, purchase money and rehab fund control. If you are interested in learning more about these types of loans, take a look at our short video on our California hard money rehab loans page.
On a straight purchase, however, getting to 80% with hard money is not nearly as common. With this program, we are able to help get financing of up to 80% of the purchase price. These loans can be for longer terms, anywhere from one to four years, and the rates can be in the high single digits. Credit does play a factor in this program, so it is a little different than many of our other products.
Typically speaking, to get to 80%, we will need to see a credit score of 640 or better. This is not a hard and fast rule. Ideally we would also like to see a history of owning other property - whether fix and flip or buy and hold rental type property.
We can assist with this type of funding on most 1-4 unit residential properties in California. On properties with over 4 units we can still help with aggressive loan to value ratios, typically capping out at about 75%.
We can also help refinance California properties at higher loan to value ratios, typically capping out between 70-80% depending on the deal.
We have a wide variety of programs to fit a wide variety of borrowers and situations. If you are looking for out of the box financing, give us a call and we are happy to discuss the options we have available. You can reach us at 877 462 3422, or visit our California hard money loans page for more information.