Some of the more aggressive hard money loans available these days in California are hard money apartment loans.  With loan to value ratios as high as 75% and 30 year terms available, some of the hard money products on the market today are priced in the same ballpark as the more traditional bank loans.

While pricing can vary depending on the hard money lender involved in the transaction, it is not out of the question to find funding at 75% of the value of the property while keeping the rates in the single digits.  Additionally, these single digit rates can often be locked in for 3, 5, 8 years or longer.  While credit can play a part in these California hard money apartment loan terms, more often than not the file is going to be underwritten based on the property itself.

With hard money, debt coverage ratios are not as important as they are with bank loans.  In addition, for those programs that are sensitive to the DCR, often times hard money lenders are able to use the market rents for a property instead of actual rents.  Why does this make sense?  Often times a property must be financed with hard money if it is distressed in some way, meaning the income it is generating is lower than what it should be.  These situations are ideal for hard money apartment lending programs, as a loan can be made based on the market rents, the property can be financed and then the owner can work on bringing the property up to spec.

With hard money lending each deal is unique.  Due to this, it is always a good idea to pick up the phone and call a hard money lender to discuss your specific scenario and what kind of terms you can expect on your loan request.  Take a look at All California Lending’s California hard money apartment loans page for more information on these types of loans as well as contact information to call and discuss your situation, property and what kind of financing solutions can be provided.