California Hard Money & Bridge Loan Programs for Real Estate Investors

A hard money loan is a type of short-term, asset-based real estate financing program in which qualifying is generally driven by the property's current or projected value rather than the borrower's tax returns, W-2s, or DTI. Advanced Funding Solutions is a mortgage brokerage that works with a network of wholesale and private investor lenders to compare hard money and bridge programs across multiple funding sources.

How Hard Money Programs Are Generally Structured

Most hard money programs are structured as short-term, interest-only notes intended to bridge a specific real estate event, such as a value-add rehab, a bridge between two transactions, or a 1031 exchange. Loan terms, interest rates, origination points, maximum loan-to-value, stabilized-value treatment, and extension options all vary by funding lender and program. Final program parameters are determined by the lender during underwriting.

Hard Money vs. Conventional Financing

Hard money programs and conventional mortgages are designed for different scenarios. Conventional financing generally relies on income, credit, and DTI documentation and is typically used for long-term ownership. Hard money is generally used for short-term, investment-property scenarios where qualifying is driven primarily by the property's value and the exit strategy. Whether a particular scenario is appropriate for a hard money program is determined by the funding lender's underwriting guidelines.

Hard money rates, points, and closing costs are set by the funding lender at the time of application and depend on credit profile, loan-to-value, property type, scope of work, exit strategy, and program. Rates change without notice and are disclosed in writing during the formal application process as required by state and federal law. Any rate or cost figures discussed before a complete application are illustrative only and are not a quote, rate lock, or commitment to lend.

Common Uses for Hard Money & Bridge Programs

Hard money and bridge programs are most often used by real estate investors and homeowners for short-term scenarios that do not fit standard conventional underwriting timelines, such as fix-and-flip acquisitions, bridge financing between two homes, non-conforming or value-add properties, and 1031 exchange transactions. Once a rehab is stabilized and rented, many investors refinance into a longer-term DSCR program that qualifies on the property's rental income. For trophy or ultra-high-value properties, a permanent takeout may instead be a jumbo loan, depending on the borrower's documentation profile. Eligibility for any specific scenario is determined by the funding lender based on its program guidelines.