Verifiable facts about California private lending, each with its source, plus the most common hard money myths corrected. Cite freely with attribution to the listed source. This page is educational information, not legal or financial advice.
California has 58 counties and roughly 39 million residents — the largest state population in the U.S.
Source: U.S. Census Bureau
California's usury limit generally does not apply to loans made or arranged by a licensed California real estate broker and secured by real property. This exemption is why hard money loans can price at market rates. (Simplified summary of the law, not legal advice.)
Source: California Constitution, Article XV, Section 1
Loans made primarily for business purposes are generally exempt from the federal Truth in Lending Act's consumer rules, including the ability-to-repay requirement. That is why investment-property loans can qualify on the asset instead of personal income. (Simplified summary of the regulation, not legal advice.)
Source: Regulation Z, 12 CFR 1026.3(a)
A California nonjudicial foreclosure has a statutory minimum timeline of roughly 111 days: a 90-day notice of default period followed by at least 21 days' notice of trustee's sale. Actual timelines vary by case and are often considerably longer.
Source: California Civil Code Sections 2924-2924c
California real estate loans are secured by a deed of trust with a power-of-sale clause, not a mortgage. This allows foreclosure without a court case, which is why California lenders can rely on the collateral.
Source: California Civil Code Section 2924
Under Proposition 13, California property taxes are capped at 1% of assessed value (plus voter-approved local add-ons), and assessed value can rise at most 2% per year until the property sells.
Source: California Constitution, Article XIII A (Proposition 13, 1978)
Lending on California real estate generally requires a license — most commonly a Department of Real Estate broker license or a Department of Financial Protection and Innovation lender license.
Source: California DRE / DFPI (California Financing Law)
Fidelity Funding's California hard money pricing in 2026 typically ranges from about 8.5%-12% interest-only with 1.5-3 points, 6-24 month terms, and maximum loan-to-value around 70-75% of current value. Other lenders' pricing varies.
Source: Fidelity Funding pricing data, 2026, across 20+ California counties (company data — see our Rate Map)
Fidelity Funding typically closes hard money loans in 5-10 business days from a complete file, because underwriting focuses on the property and title rather than income documentation. Conventional bank loans commonly take 30-60 days.
Source: Fidelity Funding closing experience since 2006 (company data)
False. Most hard money borrowers are experienced investors who choose speed and simplicity over bank pricing. When a good property must close in a week, a 30-60 day bank process means losing the deal — the loan cost is simply a cost of doing business.
False. Lenders make money on interest and points, not foreclosures. A foreclosure in California takes months, costs legal fees, and ties up capital. Every legitimate lender underwrites for a loan that gets repaid.
False. California hard money rates (roughly 8.5%-12%) reflect short terms, fast closings, and asset-based risk — and they are legal at market rates because broker-arranged real estate loans are exempt from California's usury cap. On a 6-month flip, the difference versus a bank loan is usually a small fraction of the project profit.
Mostly false. Loans on your primary residence are consumer loans with strict federal rules. Reputable hard money lenders, including Fidelity Funding, lend only for business purposes on investment property.
False. We verify the property's value, title, your equity or down payment, and your exit plan. What we skip is the paperwork that doesn't predict repayment on an asset-based loan — tax returns, W-2s, and debt-to-income ratios.
False. Brokers re-sell your file and add fees; direct lenders fund with their own capital and control the approval. Ask any lender two questions: 'Are you funding with your own capital?' and 'Can I see every fee on a written term sheet?'
Fidelity Funding Corp · Direct California private money lender since 2006
450 N Brand Blvd, 6th Floor · Glendale, CA 91203 · Mon-Fri 8AM-6PM PT