Southern California Private Money Lenders

Southern California Private Money Lenders: Fast, Flexible Hard Money Loans for Real Estate Investors

Private capital — including hard money loans — gives Southern California investors and property owners a faster, asset-focused alternative to traditional bank financing. This guide explains what those loans are, how they differ from conventional mortgages, and the common situations where investors turn to private lenders for purchases, rehabs, bailouts, or short-term bridge financing. You’ll get practical LTV and ARV ranges, typical timelines from approval to funding, and the exact documents that speed underwriting so time-sensitive deals close. The guide lays out major programs, compares terms in easy-to-scan tables, and walks through the approval and closing steps so you can evaluate options and submit a complete package. Along the way we describe how a direct private lender model operates in Southern California and share program-level details to help you pick the right product for acquisition, rehab, or rescue scenarios.

What Are Hard Money Loans and Private Money Loans in Southern California?

Hard money loans are short-term, asset-backed loans secured by real estate where lenders underwrite primarily on property equity and an exit plan rather than on borrower income or tax returns. For rehabs, lenders often rely on After-Repair Value (ARV) as the main collateral measure, which lets underwriting move quickly and decisions happen on a compressed schedule. The practical advantage is speed: borrowers can access funds for purchases, renovations, or foreclosure interventions when bank timelines would miss the opportunity. Understanding this asset-first underwriting clarifies why investors use hard money for time-sensitive acquisitions or projects where renovation creates the repayable value.

Fidelity Funding is a direct private lender based in Glendale and active across Southern California that centers its approach on equity-driven underwriting and fast execution. As an in-house lender, Fidelity Funding evaluates property-level metrics, delivers quick conditional approvals, and aims to close promptly when the deal and exit strategy are clear. That direct-capital model and streamlined documentation deliver tangible advantages for investors who need certainty and speed. With that operational model in mind, the next section covers common borrower use cases and how private lending differs from bank financing.

How Do Hard Money Loans Differ from Traditional Bank Loans?

Hard money loans differ because underwriting focuses on collateral value and a credible exit strategy instead of primarily on borrower income or credit history, which enables faster decisions. Lenders size loans by Loan-to-Value (LTV) and After-Repair Value (ARV), letting borrowers with non-traditional finances access capital based on equity. Documentation tends to be narrower—purchase contracts, property photos, and rehab budgets often suffice—so lenders can underwrite and issue approvals faster than banks. That speed comes with tradeoffs: higher rates and shorter terms, which are acceptable for investors executing quick turnarounds.

Those differences matter when timing is critical. The next section explains the investor benefits that make private money a preferred option for many Southern California projects.

What Are the Key Benefits of Private Money Loans for California Investors?

Private money loans deliver three core benefits: speed, flexibility, and leverage — all essential for flips, bridge financing, or bailout situations in competitive Southern California markets. Investors can secure higher leverage against property equity, staged rehab draws to fund construction, and broader eligibility when credit or tax records aren’t ideal. That flexibility supports strategies from fix-and-flip to short-term commercial bridge loans, enabling purchases or rescues conventional lenders can’t close in time. When projects are well scoped and exits are planned, the combination of quick decisions and tailored underwriting creates concrete return opportunities.

Which Hard Money Loan Programs Does Fidelity Funding Offer in Southern California?

Hard money lenders typically offer a lineup of programs tailored to investor needs — common options include purchase loans, fix-and-flip financing, cash-out refinances, bridge loans, commercial hard money, and foreclosure bailout solutions. Each product targets a specific use case (acquisition, renovation and resale, debt consolidation, gap financing, or foreclosure relief) and differs in LTV/ARV limits, term length, and funding cadence. Comparing programs side-by-side helps investors match a deal’s characteristics to the right product without wasting time on ineligible options.

Loan Program	Typical LTV / ARV	Loan Term	Typical Funding Speed	Purpose / Best Use
Hard Money Purchase Loans	Up to 70% LTV (75% case-by-case)	6–24 months	5–7 days	Quick acquisitions where equity supports the loan
Fix and Flip Loans	Up to 85–90% ARV (purchase + rehab)	3–12 months	5–7 days	Purchase plus rehab for resale; includes rehab funds
Bridge Loans	Up to 70% LTV	3–12 months	5–7 days	Short-term gap financing to bridge to permanent debt
Commercial Hard Money Loans	Varies by asset, case-by-case	6–36 months	7–14 days	Commercial acquisition or rehab when speed is required
Foreclosure Bailout Loans	Equity-driven, expedited	1–6 months	24–72 hours approval possible	Emergency rescue to stop foreclosure actions

What Are Fix and Flip Loans and How Do They Work?

Fix-and-flip loans fund a property’s purchase and renovation where the planned exit is resale after improvements. Underwriting commonly uses After-Repair Value (ARV) to size the loan. Lenders split funds between purchase coverage and a rehab draw schedule, often funding a high share of the purchase and a substantial percentage of ARV overall, with rehab draws released as inspections confirm work. For example, a loan structure might cover most of the purchase and reach up to 85–90% of ARV when rehab funds are included. Clear rehab budgets, contractor bids, and a defined exit timeline speed approval and reduce draw delays.

Because the structure relies on ARV, accurate comps and a realistic scope of work are essential. The next section outlines how underwriting shifts for commercial assets.

How Do Commercial Hard Money Loans Support Property Investors?

Commercial hard money applies asset-based underwriting to non-residential property types like retail, office, industrial, and mixed-use buildings, where income potential and condition influence loan sizing. Commercial deals often blend property value with income metrics (DSCR in some cases) while still prioritizing collateral and exit plans for short holds or value-add repositioning. These loans tend to have slightly longer underwriting timelines and bespoke terms to match asset complexity. Investors use commercial hard money for acquisitions, repositioning, or short-term bridge financing when conventional commercial lenders need more time.

Given the variety of commercial deals, accurate rent rolls, pro forma income, and capital expenditure targets are frequently required to speed underwriting and set realistic exits.

What Are Bridge Loans and When Should Investors Use Them?

Bridge loans provide short-term capital to close timing gaps — most commonly to buy a property quickly before permanent financing is in place or to preserve a competitive purchase. These loans prioritize speed and certainty of close over long-term cost efficiency. Investors use bridge financing to lock in purchases, cover mismatches between closing and permanent debt, or finance transfers while renovations proceed. Underwriting looks for a clear exit — refinance to permanent debt or a sale — and documenting that exit upfront reduces perceived risk and speeds approval.

Borrowers who prepare exit lender pre-approvals or resale plans lower underwriting friction and improve approval timelines.

How Do Foreclosure Bailout Loans Help California Property Owners?

Foreclosure bailout loans are emergency, equity-based solutions designed to stop or avert foreclosure by quickly supplying funds to satisfy arrears, refinance, or stabilize the asset while a longer-term plan is arranged. These products prioritize speed and documentation that proves title status and equity, often allowing approvals within very short statutory windows. A successful bailout depends on an accurate payoff demand, clear evidence of equity, and a feasible exit plan — refinance, sale, or pay-down. In practice, expedited underwriting and rapid funding can halt foreclosure proceedings long enough to execute the chosen exit.

With those program mechanics understood, the following section dives into specific terms and timing expectations to plan around.

What Are the Typical Loan Terms, LTV Ratios, and Approval Speeds for Southern California Hard Money Loans?

Hard money terms in Southern California typically run from short interim periods to a few years depending on the program, with LTV and ARV thresholds tied to risk and exit clarity. Typical ranges include up to 70% LTV for purchases and refinances (75% in stronger cases), and ARV-based funding for flips that can reach 85–90% of ARV when rehab funds are included. Interest is commonly structured as interest-only for the term, with origination points and closing fees applied. Terms are intentionally short to match renovation/resale or refinance strategies. Approval and funding speed are major differentiators: many direct private lenders deliver rapid conditional approvals and aim to close in days when documentation and title are clear.

The table below compares key attributes across major programs to help you choose.

Attribute	Fix & Flip	Purchase	Bridge	Bailout	DSCR
Max LTV / ARV	Up to 85–90% ARV	Up to 70% (75% case-by-case)	Up to 70%	Equity-driven, expedited	Case-by-case (income focus)
Interest Structure	Interest-only (short term)	Interest-only	Interest-only	Interest-only or fees	Interest-only or P&I based on DSCR
Typical Fees	Points + origination	Points + origination	Points + origination	Expedited fees possible	Underwriting fees vary
Close Time	5–7 days	5–7 days	5–7 days	24–72 hours approval possible	5–14 days depending on docs

What Loan-to-Value Ratios Does Fidelity Funding Offer?

Fidelity Funding typically underwrites with LTVs that prioritize property equity: up to 70% LTV on many programs and 75% on a case-by-case basis when value and exit are strong. For fix-and-flip projects the lender will evaluate ARV-based scenarios that can support up to 85–90% of ARV in structures combining purchase coverage and rehab funds. Second and third trust deeds are possible depending on deal structure, and higher leverage may be considered when comps and an executable exit plan support the ARV. Presenting realistic comps and a credible rehab plan improves the odds of favorable LTV outcomes.

With those LTV parameters in mind, the next section explains real-world timelines and expected speeds.

How Fast Can You Get Approved and Funded for a Hard Money Loan?

Direct private lenders emphasize fast conditional approvals and compressed closing windows: approvals in 24–48 hours and closings in 5–7 days are common when title is clear and documentation is complete. What speeds funding: a signed purchase contract, clear title, a realistic rehab budget with contractor bids, and timely responses during underwriting. Typical delays include title defects, undisclosed liens, or scope-of-work changes that trigger re-inspection. Preparing complete documentation and anticipating title issues reduces friction and helps you hit the fastest-case timelines.

This timing guidance clarifies which documents and prework most reliably speed a submission.

Who Qualifies for Private Money Loans in Southern California and What Are the Requirements?

Qualification centers on property equity, the deal’s strength, and the exit strategy rather than strictly on credit scores or tax returns. Lenders look for clear collateral, a realistic plan to refinance or sell, and documentation that supports ARV or market value estimates. Borrowers with non-traditional finances or temporary credit issues can still qualify if the property and exit reduce lender risk. Because underwriting weighs equity and exit heavily, assembling a solid package of property photos, comps, contracts, and contractor estimates materially improves approval odds.

Can Borrowers with Bad Credit Secure Hard Money Loans?

Borrowers with damaged credit can often get hard money loans when compensating factors exist — most importantly equity and a compelling exit plan that lowers lender risk. Lenders address credit issues by requiring more equity, adjusting pricing, or asking for co-borrowers or stronger exit documentation. That flexibility lets experienced investors with blemishes keep investing. Typical tradeoffs include higher rates and fees or more conservative LTVs, but these are often acceptable for short-term strategies where the asset secures repayment. A proven track record, qualified contractors, and realistic timelines help reduce the impact of credit problems.

Understanding these tradeoffs helps you decide whether private capital is the right interim tool or whether to pursue conventional financing by improving credit over time.

What Documentation Is Needed for Southern California Hard Money Loans?

A clear documentation checklist speeds underwriting and avoids surprises. Lenders typically ask for ID, proof of ownership or an executed purchase contract, a detailed rehab budget with contractor bids, property photos, and comps or appraisal support for ARV. Commercial deals may add rent rolls, profit-and-loss statements, and pro formas; bailout scenarios require payoff demands and evidence of arrears. Ordering a preliminary title report early can surface liens so you can clear issues before underwriting. Submitting a complete package up front often triggers faster conditional approvals and reduces back-and-forth that delays closings.

• Core documents to gather before submission:

1. Identification and ownership: Government ID and title information for the property.
2. Deal paperwork: Executed purchase agreement or current loan documents if refinancing.
3. Scope and cost: Detailed rehab budget, contractor bids, and timeline.
4. Valuation support: Comparable sales, estimated ARV, and property photos.

How Does Fidelity Funding Support Real Estate Investors Across Southern California?

As a direct private lender in Southern California, Fidelity Funding supports investors with local market knowledge, in-house underwriting, and processes built for speed and predictability. In-house teams and direct capital reduce reliance on third parties and allow quicker conditional approvals and closings when deals meet our criteria. Our model emphasizes property equity over borrower tax returns or credit, enabling fast decisions for time-sensitive purchases, rehabs, and bailout scenarios. That approach gives borrowers certainty of close, dependable access to rehab draws, and flexible repayment options for short-term projects.

Which Southern California Areas Does Fidelity Funding Serve?

Fidelity Funding works with investors and business-purpose borrowers across Southern California, including Los Angeles, Orange County, San Diego, Riverside, San Bernardino, Ventura, and our home base in Glendale. Local market familiarity helps underwriters read comps, estimate rehab timelines, and set resale assumptions for each submarket, improving appraisal accuracy and loan sizing. Knowing county-level timelines and title-office practices also speeds closings in familiar areas. That geographic coverage lets us apply practical, local knowledge to underwriting and prioritize deals with clear market exits.

Local expertise matters because exit valuations and rehab timelines vary by city and neighborhood, which affects both LTV and funding speed.

What Investor Benefits Does Fidelity Funding Provide?

Working with a direct private lender offers several practical advantages: faster conditional decisions and potential closings in 5–7 days, high-leverage options tied to equity or ARV, and rehab draw funding to complete value-add projects. Other benefits may include second and third trust deed structures depending on the deal and no prepayment penalties on certain loans — features that increase flexibility for short-term strategies. In-house underwriting and direct capital reduce administrative friction and give borrowers clearer funding timelines. Those operational strengths are especially valuable for investors managing multiple projects or needing quick answers on time-sensitive purchases.

Knowing these operational benefits leads naturally into the step-by-step approval and closing process you should expect.

What Is the Hard Money Loan Approval and Closing Process with Fidelity Funding?

The approval and closing process usually follows a straightforward sequence: initial inquiry and deal submission, underwriting with appraisal and title review, document preparation and closing, and then funding and draw management. Each step has specific deliverables and typical timeframes that reflect the lender’s capacity to approve and fund quickly when the package is complete. Fidelity Funding’s direct-lender model emphasizes in-house underwriting and proactive title coordination to reduce friction across these stages. The table below maps process steps to required documents and expected timing so you can prepare a submission that meets speed expectations.

Step	What Happens	Documents Needed	Typical Timeframe
1. Initial inquiry & submission	Lender reviews deal summary and preliminary documents	Purchase contract, photos, rehab budget	24–48 hours for conditional approval
2. Underwriting & appraisal/title	In-house underwriter orders valuation and title check	Comps, appraisal, preliminary title report	1–5 days depending on complexity
3. Final docs & closing	Prepare loan documents and coordinate escrow/title	Signed loan docs, insurance, payoff instructions	1–3 days to closing after clear title
4. Funding & draws	Loan funds or initial disbursement; rehab draws per schedule	Inspection reports for draws, contractor invoices	Funding same day as closing; draws per inspection schedule

What Are the Steps from Application to Funding?

Following a clear, numbered process reduces surprises and ensures you submit the right items in order:

1. Submit a deal package with purchase contract, photos, and rehab scope;
2. Receive a conditional approval and property valuation;
3. Complete underwriting items such as title clearance and insurance;
4. Schedule closing and sign final loan documents;
5. Fund the loan and begin rehab draws or receive acquisition disbursement.

Each step depends on timely documentation — title clearance and a solid rehab budget are common gating items. Preparing those in advance shortens the gap between conditional approval and funding.

How Does Fidelity Funding Ensure Fast and Flexible Loan Closings?

Fidelity Funding speeds closings by using in-house underwriting, direct capital deployment, and standardized document templates that cut down back-and-forth with third parties. We proactively coordinate with title and escrow teams and follow a clear rehab-draw protocol to reduce delays tied to inspections and lien releases. Borrower preparation — clear title, complete contractor bids, and prompt responses — further compresses time to close and enables us to meet aggressive timelines when deals qualify. For borrowers, following the lender’s checklist and communicating openly are the best ways to secure the fastest possible funding.

1. Prepare the full package: Purchase agreement, rehab budget, comps, and ID.
2. Order preliminary title early: Identify and resolve liens or issues before underwriting.
3. Line up contractors: Valid bids and inspection-ready progress reduce draw delays.

These steps help ensure a predictable path from submission to funding for investors who need speed and certainty when closing time-sensitive Southern California deals.

Frequently Asked Questions

1. What types of properties can be financed with hard money loans?

Hard money loans can finance a wide range of properties: single-family homes, multi-family, commercial buildings, and other investment assets. They’re especially popular for fix-and-flip projects where investors buy, renovate, and resell. They also work for properties in foreclosure or those needing significant repairs. The central requirement is sufficient equity in the asset — the loan is secured by the property itself, which provides flexibility across property types.

2. Are there any prepayment penalties associated with hard money loans?

Many hard money lenders, including Fidelity Funding, do not charge prepayment penalties on certain loans, allowing borrowers to pay off their balance early without extra fees. This is helpful for investors who flip quickly or refinance into permanent debt. Still, terms vary by program, so always confirm prepayment language in the loan documents before you close.

3. How does the interest rate on hard money loans compare to traditional loans?

Interest rates on hard money loans are generally higher than traditional bank rates because lenders take on more short-term risk and focus on asset-based underwriting. Rates can vary by lender, property type, and perceived deal risk. While conventional loans might offer rates in the low single digits in some markets, hard money typically ranges higher — reflecting its short-term, opportunity-driven nature.

4. What is the typical loan term for hard money loans?

Hard money loans are usually short-term, commonly ranging from 6 months to 3 years depending on the program and borrower needs. They’re designed for quick financing solutions that align with strategies like flipping or bridging to permanent financing. Borrowers should plan their exit strategy to ensure repayment within the loan term.

5. Can hard money loans be used for commercial properties?

Yes. Hard money can finance commercial properties such as retail, office, and industrial assets. Underwriting for commercial deals may consider income potential and market conditions, but the primary focus remains on the property’s equity and the borrower’s exit plan. This makes hard money a viable option for investors needing fast capital for commercial acquisitions or renovations.

6. What happens if a borrower defaults on a hard money loan?

If a borrower defaults, the lender’s primary recourse is foreclosure on the collateral property. Because hard money is asset-based, lenders typically move to recover value through the property. The foreclosure process may be faster than with traditional loans due to the structure of private lending. Borrowers should understand the risks and ensure a realistic exit plan to avoid default.

7. How can investors improve their chances of loan approval?

Investors improve approval odds by preparing a thorough package: property photos, a detailed rehab budget, comparable sales data, and a clear exit strategy. Showing strong equity, realistic timelines, and credible contractors helps underwriters assess risk positively. Open communication with the lender and addressing potential title or entitlement issues up front also streamlines the process and builds lender confidence.

Conclusion

Private money loans in Southern California give real estate investors a fast, flexible way to access capital for acquisitions, renovations, and emergency bailouts. By leaning on property equity rather than traditional credit metrics, these loans let borrowers act quickly on time-sensitive opportunities with tailored terms. Knowing the different programs and their tradeoffs can sharpen your investment strategy. If you’re evaluating a deal, reach out to Fidelity Funding to discuss options and find the product that fits your timeline and exit plan.