How Do Hard Money Loans Work in California?
5 minute read
February 10, 2021


In many property-buying or refinancing circumstances, a traditional loan through a bank does the job. You or your customer submit all of the necessary documents, fill out the paperwork, wait for approval, and secure financing for the property.

But sometimes, the traditional route just doesn’t work. You need loans fast, and you need them to work for your unique case. What then?

In California especially, traditional mortgages often don’t offer the speed and flexibility that brokers or borrowers such as investors, house flippers, or new homeowners need to be successful. Here, the high value of property creates rich opportunities for buying and selling real estate.

It’s hard to be successful if you’re waiting 60 days for approval, or if something such as a slightly below average credit score causes rejection from a bank. In California, the opportunities are plentiful, but they need the proper lending relationship to back the deals.

Hard money loans in California might be the solution you need. Learn how to qualify for a private money loan, how they work, and how to submit a loan scenario so you can join in on these lucrative real estate opportunities. 

Why use a hard money loan for California real estate?

Hard money loans offer you a competitive edge. In a market such as California’s, this will be essential to helping you acquire the deals you want.

Since you’re working directly with the investor, you will have the flexibility and efficiency of negotiating terms. With traditional loans, it takes months to close on a loan. But with private money lenders, you can secure a loan in days.

Hard money loans are from private lenders, not banks. They are best for short-term projects, because repayment periods usually are one to five years. That’s why they are perfect for fixing and selling homes, or to fund renovations for a property where you may eventually refinance.

They also are good for consumers who need to consolidate debt, self-employed borrowers, or for people who need to acquire a new property before selling their current home.

Some lenders may offer long-term private loans, but this is rare. Marquee Funding Group is one of the only hard money lenders in California that offers long-term consumer loans ranging from 10-30 years, with fully amortized payment options.

Marquee offers California customers the following:

  • Owner-occupied or non-owner-occupied consumer or business purpose loans
  • Single-family, multi-family, commercial, industrial, construction, and land loans
  • Loan amounts from $50,000 to $20 million
  • Loan-to-Value up to 70% (deal specific)

We have the ability to provide same-day approvals, and can close on deals in as little as seven days.

How do I qualify for a hard money loan?

Qualifying for hard money loans in California is much simpler than traditional loans.

If you’ve gone the traditional route before, you’ve experienced the “red tape.” Some requirements for traditional loans include the following:

  • High credit score
  • Low debt-to-income ratio
  • Proof of income and tax records
  • No bankruptcies or foreclosures

On the other hand, a hard money lender’s focus is on the merit of the deal. This flexibility allows those who have a harder time proving income, such as business owners or those who are self-employed, the opportunity to acquire a deal when banks may have made it impossible. It is also perfect for those in need of a second mortgage or a bridge or new construction loan.

There used to be more options for borrowers in the form of non-qualified mortgages, but these dried up as a result of COVID-19’s effects on the marketplace. The ideal option is a private money loan. 

How does a hard money loan work?

To secure a hard money loan with a private money lender smoothly and efficiently, establishing a relationship with the lender can help them adjust the process to work with your unique situation. 

To help you gather information and get organized, take a look at Marquee Funding Group’s loan application, which asks for the following information:

  • Client type (broker or borrower)
  • Name, email, and phone number
  • Property type
  • Loan type
  • Occupancy
  • Desired loan position
  • Borrow amount
  • Estimated property value
  • Applicant credit score
  • Loan purpose summary

Marquee Funding Group will be straightforward and efficient in all aspects of your deal. In return, be transparent with us about you or your customer’s situation, goals, needs, and requirements. We aim to simplify the deals the bank deemed too complex.

Additionally, all underwriting, processing, and servicing is in-house to make the process as smooth as possible. 

We’re happy to discuss your deal. Connect with us as soon as possible with your questions so that we can help you get what you need.

How to submit a loan scenario to Marquee Funding Group

Hard money loans are most valuable when you’re able to build a relationship with your lender. Marquee Funding Group is interested in creating long-term relationships with brokers and borrowers. This foundation creates confidence and trust that offers more to brokers and borrowers, making it mutually beneficial.

Getting a hard money loan starts with finding a lender you can trust. Take the following steps to begin the process and establish a relationship with us:

  1. Connect with us to arrange an initial discussion.
  2. Ask questions, share your needs, learn more about us, and get an idea of the time frame to finance what you want.
  3. From there, you will be able to present your deal as a loan scenario.
  4. Include all required information and documentation. Keep it organized and accurately labeled so that we can all easily reference the details when needed. 

Call us today or apply now so that we can help you acquire your hard money loans in California.

Photo by Kelly Sikkema on Unsplash


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