Hard Money Construction Loans in California

California Construction Loans Funded with Hard Money

North Coast Financial is a California direct hard money lender with over 40 years of experience providing various hard money loans types. Hard money construction loans are the faster and easier alternative for obtaining financing for the construction of a residential property. Traditional lenders such as banks can take 45-60 days to fund a construction loan, while a hard money construction lender can fund within a couple weeks.

North Coast Financial is able to consider construction loans with a loan to cost ratio up to 60-65% in Southern California.

Please visit our Accessory Dwelling Unit Loans page for specific information on ADU construction loans.

As Featured

Why Choose North Coast Financial?

Hard Money Construction Loans for Real Estate Investors

Construction Loan Rates, Loan to Value Ratios & Term Lengths

Construction loan rates can be anywhere from 10-15% depending on various factors affecting the risk of the project. The preferred loan to cost (LTC) on new construction loans is in generally 50-65%. The terms available for a construction loan ranges from 6 to 18 months. In some cases, extensions on the term of the loan may be granted as long as regular payments are being made and the loan is current.

New home construction loans may be refinanced with a conventional lender upon completion of construction if the goal of the project is to build a home to reside in. Otherwise, the borrower will most likely be selling the property in order to pay off the initial construction loan.

Fund Control for Construction Loans

Construction loans utilize fund control or construction reserve accounts, which are responsible for disbursing the predetermined funds from the lender to the borrower once the corresponding construction tasks are completed. The line item budget specifies the construction tasks to be completed and the amount of funds that will be disbursed upon completion. Construction loans also contain a Contingency line item within the line item budget, which is 5-10% of the total budget of the construction costs to account for any unforeseen expenses or over budget items.

Another common requirement by the construction lender is Course of Construction insurance. This covers all of the improvements (framing, dry wall, plumbing, etc.) made to the property as the construction progresses.

North Coast Financial is an experienced provider of hard money construction loans in San Diego and throughout Southern California. Contact us for a free consultation and to see how we can help with your project.

North Coast Financial Hard Money Construction Loan Program

  • Hard Money Construction Loan Program

Loan Application Approval Timeline Same day approval available
Time to Fund Loan 1-2 weeks if needed
Property Types Residential – Single family & multi-family
Loan Amounts $30,000 – $3 Million+
Loan Terms 6 to 36 months with longer terms available
Lien Position 1st
Loan to Cost (LTC) Up to 65% of total cost (property + construction costs)
Fees No appraisal fees (in most situations) and no hidden junk fees
Construction Loan Rates and Points Please contact us for information on current rates and points