FIDELITY FUNDING (877) 300-3007

Hard Money Loan FAQ

The 15 questions California real estate investors ask us most, answered in plain English by Fidelity Funding Corp, a direct California private money lender since 2006. Call (877) 300-3007 for a same-day answer on your exact scenario.

Frequently Asked Questions

What is a hard money loan?

A hard money loan is a short-term real estate loan from a private lender instead of a bank. Approval is based mainly on the value of the property, not your tax returns or W-2 income. Investors use hard money to buy, renovate, or refinance investment properties quickly.

How fast can Fidelity Funding close a loan?

Most loans close in 5 to 10 business days from a complete file. Simple purchases with clear title can close in as few as 5 days. Banks typically take 30 to 60 days for the same loan.

What interest rates do you charge?

Most California hard money loans price between roughly 8.5% and 12% interest-only, depending on the property, loan-to-value, and your experience. DSCR rental loans price lower. Call (877) 300-3007 for a same-day quote on your exact scenario.

How much money do I need to put down?

Plan on 20% to 35% down for a purchase. We typically lend up to 70-75% of a property's current value, and up to about 70% of the after-repair value on fix-and-flip projects.

Do you check credit or income?

We pull credit, but the loan decision is based on the property and your equity, not your credit score or personal income. Self-employed borrowers and investors who write off most of their income routinely qualify. No tax returns are required on most programs.

What types of property do you lend on?

Single-family homes, condos, 2-4 unit properties, apartment buildings, mixed-use, retail, office, industrial, and land with a clear exit plan — anywhere in California. All loans are for investment or business purposes; we do not lend on a home you plan to live in.

What is a DSCR loan?

A DSCR (debt service coverage ratio) loan is a 30-year rental property loan that qualifies on the property's rent instead of your personal income. If the rent covers the monthly payment, the property can qualify — no tax returns or employment verification.

What fees should I expect?

Expect 1.5 to 3 points (a point is 1% of the loan amount), plus standard third-party costs such as escrow, title insurance, and an appraisal or site visit. We quote every fee on a written term sheet before you commit — no hidden charges.

What loan amounts do you fund?

From $50,000 to $50 million. Small single-family flips, large multifamily and commercial projects, and everything in between.

Can I get a hard money loan on my own home?

No. Fidelity Funding only makes business-purpose loans on investment properties. Loans on a primary residence you live in are consumer loans, which follow different rules and are not something we offer.

How do renovation draws work?

On fix-and-flip and construction loans, part of the loan is held back for the rehab budget. As you complete each stage of work, we inspect and release that portion of the funds — usually within 24 to 48 hours of the inspection.

What areas do you cover?

All 58 California counties. Most of our volume is in Los Angeles, Orange, San Diego, Riverside, San Bernardino, and the Bay Area, but we fund loans from the Oregon border to San Diego.

What documents do I need to apply?

For most loans: the property address, purchase contract (if buying), a rehab budget (if renovating), two months of bank statements to show your down payment, and your entity documents if you're borrowing through an LLC. That's usually it — no tax returns.

What happens if I need more time at the end of the loan?

Most of our bridge and flip loans are 12-month terms with extension options. If your project needs more time, we can usually extend for a modest fee — talk to us before the maturity date and we'll work out a plan.

How do I apply?

Call (877) 300-3007 or submit your scenario at fidelityfundingcorp.com/contact. A senior loan officer reviews every file the same day and, if it fits, you'll get a written term sheet — usually within 24 hours.

Get a California Term Sheet Today

Fidelity Funding Corp · Direct California private money lender since 2006

(877) 300-3007

450 N Brand Blvd, 6th Floor · Glendale, CA 91203 · Mon-Fri 8AM-6PM PT

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