San Diego Hard Money Lenders

Experienced & Direct Hard Money Lenders Based in San Diego, California

North Coast Financial is one of the top hard money lenders in San Diego, California with over 45 years of experience. San Diego is one of California’s most competitive and desirable real estate markets, and investors and property owners who want to move quickly on deals need a hard money lender who can quickly deliver on their promises. North Coast Financial has been funding hard money loans in San Diego and throughout San Diego County since 1981 with more than a billion dollars in California loans funded. We are a direct hard money lender, and our experience in the San Diego market runs deep. Contact North Coast Financial now and partner with one of the most experienced direct hard money lenders in San Diego.

San Diego real estate spans an extraordinary range of neighborhoods and property types, from the beach communities of Ocean Beach, Pacific Beach, and La Jolla to the suburban developments of Santee, El Cajon, and Chula Vista, and from the historic neighborhoods of North Park and Mission Hills to the newer master-planned communities in Carmel Valley and Otay Ranch. North Coast Financial has funded hard money loans throughout this landscape and understands the distinct dynamics of each submarket.

The hard money loan types we fund in San Diego include fix and flip loans for investors acquiring and renovating older homes across the city and county, bridge loans for homeowners buyers who need to close on a new property before existing real estate is sold, cash-out refinances for property owners who want to access equity without a lengthy bank process, and purchase loans for properties that need work before qualifying for conventional financing. We also fund divorce and partnership buyouts, construction loans, hard money seconds, and loans on probate and trust properties.

The case for hard money lending in San Diego is straightforward. The market is competitive, inventory is limited, and good properties attract multiple offers with tight timelines. A conventional lender that takes 30 to 45 days to close cannot compete with a buyer backed by North Coast Financial who can close in days. We also work with the full range of borrowers who do not fit conventional underwriting: self-employed investors, those with multiple properties, borrowers with credit imperfections, and anyone whose income documentation does not satisfy a bank’s requirements.

North Coast Financial is run by Don Hensel, the licensed broker and owner, who personally reviews every loan we fund. You work directly with the decision-maker, not a processor or a committee. We have been doing this since 1981 and have built long-standing relationships with investors and real estate professionals throughout San Diego County.

Contact us today for a free consultation on your San Diego hard money loan.

San Diego Hard Money Loans offered by North Coast Financial

North Coast Financial provides multiple types of hard money loans in San Diego including bridge loans, fix and flip loans, investment property loans, probate and estate loans, trust loans, cash out refinance loans, purchase loans, reverse mortgage refinance loans, distressed property loans, hard money loans for owner occupied property and various other hard money loans for real estate.

Residential Hard Money Loans – Commercial Hard Money Loans

North Coast Financial provides funding for both residential hard money loans (single family residences, duplexes, multi-family residences) as well as commercial hard money loans (retail, office, light industrial, medical). The loan to value ratio for a residential property will be higher than what is available for a commercial property.

Bridge Loans

North Coast Financial specializes in consumer bridge loans for California real estate in San Diego County and throughout California. Bridge loans are short-term loans of less than 12 months secured against a borrower’s property which is then used to purchase a new residence. Once the borrower has purchased the new property, the existing property is sold which will automatically pay off the bridge loan.

Bridge loans are available to homeowners who need to borrow against their primary residence so they can purchase a new home. The borrower may also be able to use a bridge loan to purchase the new property directly if they have a sufficient down payment. If needed, a double bridge loan can help pull equity from the existing property and also provide a loan on the new property being purchased. Real estate investors are also able to use bridge loans to borrower against their existing property to purchase a new investment property.

Contact North Coast Financial now to inquire about a San Diego bridge loan or visit our Bridge Loans page for additional information.

Fix and Flip / Hard Money Rehab Loans

Fix and flip loans are an important financing tool used by real estate investors who want to purchase a property, make upgrades and repairs and then sell the property as soon as possible for a profit. Also known as rehab loans, fix and flip loans provide the real estate investor with fast and easy financing, which allows investor to take advantage of a short-term opportunity without using all of their available funds in a cash deal.

Please see our Fix and Flip / Hard Money Rehab Loan page or contact North Coast Financial for more information.

Probate Loans, Estate Loans & Trust Loans

Probate, Estate and Trust loans are available to beneficiaries and heirs who need short-term financing for real estate assets currently within a trust or estate. The loan proceeds are frequently used to settle debt obligations of the estate/trust or to pay other heirs when dividing ownership. The estate or trust must contain California real estate for North Coast Financial to provide a loan. Please see our Probate and Estate Loans or Trust Loans page for additional information.

Cash Out & Refinance Loans

Cash out and refinance loans in San Diego and throughout California are available to property owners with sufficient equity in their property. Cash out refinance loans are typically used to borrow against the equity in a property to invest in another opportunity. Refinance loans are used to secure a lower interest rate or a longer loan term.

To inquire about a San Diego cash out or refinance loan contact North Coast Financial now or visit our Cash Out & Refinance Loan page for more information.

What is a Hard Money Loan?

Hard money loans are similar to conventional home loans. Borrowers obtain loans with real estate as collateral. The main distinction is that San Diego hard money loans are financed by private investors as opposed to large conventional lenders (credit unions and banks).

While conventional lenders are most concerned with factors such as income history and credit scores, San Diego hard money lenders are primarily focused on the value of the property and the borrower’s equity within that property. Focusing on value and equity allows the hard money lender to provide quick and flexible funding that banks aren’t able to offer

San Diego hard money lenders generally require a down payment of 25-30% or more. While this down payment amount is typically above what is required from conventional lenders, the benefit is that hard money lenders have far fewer requirements and documentation needed for loan approval and funding. Hard money lenders are also able to overlook bad credit and other issues on a borrower’s record including short sales, bankruptcies, foreclosures and loan modifications.

Hard money loans are typically only for short-term use. The hard money borrower needs to have an exit strategy or two in mind when they apply. For San Diego, hard money loan terms up to 3-4 years are typically available to borrowers. The most common exit strategies include refinancing into a long-term conventional loan, selling the property or refinancing with another hard money loan.

Hard money lending rates will always be higher than what conventional lenders are able to offer. San Diego hard money loan interest rates generally range from 8-11% for a 1st loan. Hard money 2nd mortgages range from 10-14% interest due to the greater amount of risk assumed by the 2nd lender. Specific hard money rates vary based on multiple variables including the strength of the borrower, the lender, the property and the loan to value (LTV) needed. Even though hard money interest rates are higher than bank loans, the fast funding and flexible lending criteria are often worth the higher cost to the borrower.

Real estate investors who need quick financing to secure a real estate opportunity are the most common users of San Diego hard money loans. Because of the short-term nature of hard money loans, the amount of interest paid isn’t typically a significant cost relative to the return on investment.

Obtaining a San Diego Hard Money Loan from North Coast Financial

The hard money loan application process with North Coast Financial is quick and easy. The hard money borrower must complete and return the loan application. North Coast Financial will then review the application and notify the borrower of whether or not their hard money request has been approved. The loan approval process is frequently completed the same day the application is received.

For investment property, North Coast Financial is able to fund the hard money loan in as few as 3-5 days once the loan request has been approved. Hard money loans on owner occupied property typically take 2-3 weeks due to the current federal regulations that all lenders (including hard money lenders) must comply with

Hard money lenders in San Diego are typically asset-based. This means hard money lenders are primarily focused on the current value of the property as well as the equity the borrower has in the property. Various issues on a borrower’s record including poor credit scores, foreclosures, and loan modifications can be overlooked by hard money lenders as long as the borrower has a significant down payment or sufficient equity within the real estate used as collateral.

Once the San Diego hard money loan is approved, North Coast Financial begins the loan process and works closely with the borrower and 3rd parties (real estate agents, escrow, title) to have the loan funded quickly. North Coast Financial prepares all of necessary loan documents and disclosures for the transaction and is happy to answer any questions the borrower may have.

Once escrow is ready to receive loan funds from the lender, North Coast Financial has the funds wired to escrow in order to close the deal.

San Diego County, California