San Jose Hard Money Lenders & Loans
Direct Private Lender

San Jose Hard Money Lenders

North Coast Financial are San Jose hard money lenders (private money lenders) providing real estate investors and property owners with hard money loans (private money loans). The company has over 45 years of hard money lending experience and the broker/owner of the company has provided funding of over $1 billion in California hard money loans since 1981. Contact North Coast Financial now to inquire about a San Jose hard money loan.

As a direct lender, we fund our own loans. There is no waiting while a broker shops the file to other lenders and no committee to approve the deal. Requests are reviewed as soon as they come in, and investment property loans in San Jose can close in as few as 5 to 7 days once title and escrow are open. Fixed rates start at 9.95% (excluding consumer purpose loans) with points from 1.5, and every fee is named in writing before the borrower commits. There are no junk fees.

San Jose Hard Money Loans

We offer multiple types of San Jose hard money loans (private money lending) including bridge loans, trust loans, distressed property loans, rehab loans / fix and flip loans, probate, estate and trust loans, investment property loans, rental property loans, construction loans, cash out refinance loans, hard money purchase loans, reverse mortgage refinance loans, owner occupied hard money loans and various other San Jose hard money loans secured against real estate. For hard money loans in California from a direct lender with no junk fees, call Jeff Hensel at (760) 722-2991.

How a Hard Money Loan Works in San Jose

A hard money loan is a short-term real estate loan made by a private lender instead of a bank. The loan is secured by real estate, and the equity in the real estate and exit strategy are the primary factors in the lending decision. Because the underwriting is asset based, hard money lenders can give an approval and fund a loan in days rather than the 30 to 45 days a bank or conventional lender usually needs.

The application process is simple. The borrower provides the address, the loan amount needed, the approximate value, any existing liens, and how the loan will be repaid. We review the request, provide a quote and an approval, open escrow and fund. Most San Jose hard money loans are written for 1 to 2 years, with some running to 3. Monthly payments are made during the term, and the hard money loan is paid off when the real estate sells or the borrower refinances into long-term financing.

Hard Money vs. Traditional Bank Financing

Traditional lenders in the Bay Area require a full borrower file first. They typically need credit scores, tax returns, debt to income ratio and employment history. Any weakness in that file can stall or kill a conventional loan, and even a clean file takes weeks to close. A hard money lender underwrites the property first. Significant equity in the real estate is the requirement, and the borrower’s credit history is secondary.

That difference matters most when time is short. A San Jose investor who must close a purchase in ten days, an heir who needs to buy out a sibling before a trust can distribute, or a homeowner who has to close on a new house before the old one sells cannot wait on a traditional lender. Hard money loans fill that gap. The trade-off is cost. Hard money rates are higher than conventional mortgage rates, which is why these loans are built to be held for months, not decades. Our Hard Money Loan Interest Rates page explains how the rate on a specific loan is set.

Who Uses Hard Money Loans in San Jose

• Real estate investors buying rentals or fix and flip projects who need to close fast or are competing against cash offers. Investors who use hard money lenders for the purchase often refinance into a conventional loan once the work is done. Our Hard Money Loans for Real Estate Investors page covers these loans in detail.
• Homeowners buying a new primary residence before the current home sells, using a bridge loan against the current home.
• Heirs, trustees and executors who need to borrow against a property held in a trust or estate to buy out other beneficiaries, pay estate expenses or keep a family home.
• Owners who need to pull cash out of a free and clear or low-leverage home or building for a business purpose. See Hard Money Business Loans.
• Borrowers a bank has turned down because of credit issues, recent self-employment, a short work history, or an entity such as an LLC, corporation or trust holding title.

Hard Money Loan Requirements in San Jose

The main requirement is significant equity in the real estate. We lend up to 65% to 70% of the value, which leaves a cushion for the borrower and the lender. Beyond equity, the lender looks at four things:

• The property. Location, condition and how easily it could be sold. Homes and buildings in San Jose and the surrounding Santa Clara County cities sit in one of the strongest real estate markets in California, which works in the borrower’s favor.
• The exit. How the loan will be repaid: a sale, a refinance into a conventional loan once the borrower qualifies, or another documented source. A clear exit is the single most important part of the file after equity.
• The payments. The borrower needs a way to make the monthly payments during the loan term.
• Credit. Credit is reviewed and considered but a low credit score or past credit problems do not disqualify a borrower when the equity and the exit are solid.

There is no published minimum credit score, because the decision is based on the whole scenario rather than one number. Our 3 Main Hard Money Loan Requirements page walks through each one.

San Jose Bridge Loan Lenders

North Coast Financial are experienced bridge loan lenders providing San Jose bridge loans. Bridge loans are short-term loans that give the borrower time to secure long-term financing. Residential bridge loans can help a homeowner purchase a new primary residence prior to selling their existing residence. This eliminates the need to move twice in order to access the equity in the existing home.

In a market like San Jose, where a well-priced home can draw several offers within days, a contingent offer is often passed over, and a quick close is the buyer’s best option. A bridge loan lets the buyer make a non-contingent offer on the new home, then sell the existing home on a normal timeline instead of a rushed one. These bridge loans run up to 11 months, with monthly payments and no prepayment penalty. Owner occupied bridge loans take about 2 to 2.5 weeks to fund because of federal and state disclosure rules. Bridge loans on investment property can fund in 5 to 7 days. Contact North Coast Financial now to inquire about a San Jose bridge loan or visit our Bridge Loan page for additional information.

Hard Money Loan Property Types

While primarily residential hard money lenders for property types such as single family residences and multi-family residences, we are also able to provide commercial hard money loans for office buildings, healthcare, hotels, industrial, retail and special purpose property.

Houses and small multi-unit buildings make up most of the loans funded in San Jose: single family homes, condos and townhomes, duplexes, triplexes and fourplexes, and larger multi-unit buildings. The property can be owner occupied, a rental, vacant, or in the middle of a renovation. Properties held in a trust, an estate, or an LLC are fine. Properties with deferred maintenance, code issues or a tenant in place, which many traditional lenders will not finance, are reviewed on their merits.

Fast Hard Money Loans in San Jose

Speed is the reason most borrowers call hard money lenders in the first place, and a quick approval is what separates a direct lender from a broker. A purchase with a short closing window, a probate sale with a court date, a 1031 exchange deadline, or a balloon payment coming due on an existing loan all need funding on a schedule a bank cannot meet. We can fund a San Jose investment loan in as few as 5 to 7 days from an open escrow, and often faster when the title is clean and the borrower has the address, value and exit ready. Our Fast Hard Money Loans page explains what speeds a closing up and what slows one down.

The details that most often delay a closing are an unrecorded lien, a title vesting problem, or an estate that has not yet received letters from the probate court. Raising those up front lets the lender work around them instead of discovering them at the closing table.

What a San Jose Hard Money Loan Costs

Hard money is priced for speed and flexibility. Rates on a specific loan depend on the loan to value, the property type and the exit, and we quote them upfront. Third-party closing costs of escrow, title insurance, notary and recording will always be required. There are no junk fees and typically no appraisal fee. Because the loans are short term, the total cost of the money is measured against the deal it makes possible: the profit on a flip, the purchase that would otherwise be lost, or the estate that can finally be settled and distributed.

San Jose, California

The largest city in Northern California as well as the center of Silicon Valley, San Jose has an estimated population of over 1 million. San Jose, California is the 3rd largest city in California by population. It eclipsed San Francisco as the largest city in the Bay Area in the early 1990s. It is primarily known for being the capital of the tech industry, which brings affluence and a very high cost of living to the area. San Jose is part of Santa Clara County and was incorporated as a city in 1850. We fund hard money loans throughout the city and the surrounding Santa Clara County communities, including Santa Clara, Sunnyvale, Milpitas, Campbell, Los Gatos, Cupertino and Fremont.

Frequently Asked Questions About San Jose Hard Money Loans

Do you need good credit for a hard money loan?

No. Hard money lenders base the decision on the equity in the property and the plan to repay the loan, not on a credit score. Good credit is not required. We review credit, but a low score, a past foreclosure or bankruptcy, or thin credit does not disqualify a borrower when the property has significant equity and the exit is clear.

What kind of properties can you get a hard money loan for in California?

Single family homes, condos, townhomes, 2 to 4 unit properties and larger multi-unit buildings are the most common. We also lend on commercial properties such as office, retail, industrial and mixed use. The property can be owner occupied, a rental or vacant, and it can be held by an individual, a trust, an estate or an LLC. The property must be in California.

Is a hard money loan a good idea?

It depends on the deal. A hard money loan costs more than a bank loan, so it makes sense when speed or flexibility is worth more than the difference in rate: a purchase that has to close in days, a property a bank will not finance, or a borrower a bank will not approve. It is a short-term option with a planned exit, not a replacement for a 30-year mortgage. Real estate investors use it to win deals; homeowners and heirs use it to solve a timing problem. If a conventional loan is available on the borrower’s timeline, that is usually the cheaper choice.

How fast can a hard money loan close in San Jose?

Investment property purchases and refinances can close in 5 to 7 days once escrow is open, and the approval comes quickly once the address, value and exit are in hand. Owner occupied loans, including bridge loans on a primary residence, take about 2 to 2.5 weeks because of federal and state disclosure waiting periods.

How much can I borrow against a San Jose property?

We lend up to 65% to 70% of the value, on hard money loans up to several million dollars. On a purchase, the borrower brings the down payment and closing costs; on a refinance or cash out loan, the amount available is the difference between that loan to value limit and any existing liens. Contact North Coast Financial or call (760) 722-2991 with the property address and approximate value for a quick answer.