Hard Money & DSCR Loans in California
California is where the checks are biggest and the speed matters most — coastal metros where certainty of close beats price, an ADU revolution that state law made by-right, and inland markets (Sacramento, the Inland Empire, the Central Valley) where California demand meets workable basis. Hard money fits the stakes: asset-based loans closing in days for flips, ADU and infill construction, bridge, and rental plays, plus 30-year DSCR loans for the holds. Y Millennial Funding offers hard money and DSCR programs across California — typically 65-75% of value (ARV-based on renovations), 6-24 month interest-only terms, LLC standard. Business-purpose, non-owner-occupied only. Programs, rates, and availability vary by state and lender. Not all applicants qualify.
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The California Investor Market
California's investor map splits by basis: LA and San Diego run design-forward flips and the nation's most active ADU economies; Sacramento is the value capital where Bay-exodus demand meets workable prices; the Inland Empire and Central Valley carry the state's BRRRR-adjacent math. The statewide edge is the ADU framework — state law made backyard units and conversions predictable across every city, converting lot value into rentable square footage. Statewide discipline: rent-control and just-cause rules attach to older multifamily in many cities (verify per address), high absolute price points mean liquidity requirements scale, and coastal exit markets are deep but cycle-aware.
DSCR Loans in California
DSCR loans in California: 30-year rental financing qualified on the property's rent — most powerful here as the exit for ADU projects, where combined rents from the main house plus new units clear ratios that single units can't at California prices. Programs run roughly 20-25% down, thresholds near 1.0-1.25, LLC standard, no tax returns; many count short-term-rental income where local rules allow. The practical California pattern: build or renovate on hard money, lease everything, refinance into DSCR on combined rents — Sacramento, the Inland Empire, and San Diego's mid-city are where the math clears most often.
California Lending Notes
California hard money runs on non-judicial deed-of-trust foreclosures through trustee sale — efficient by big-state standards — and the state hosts the deepest private-lending industry in the country, which means competitive program variety for borrowers. California regulates lending and brokering through its own licensing framework, and all programs we offer are business-purpose loans on non-owner-occupied investment property — consumer-purpose lending is a separate regulated world. Local overlays matter more here than anywhere: rent stabilization on older multifamily, coastal-commission zones, and city-level transfer taxes get verified per deal. General information, not legal advice.
Investor Markets in California
We maintain dedicated market pages for California's investor metros: Los Angeles (ADU gold rush, design-forward flips, RSO diligence), San Diego (the ADU-bonus capital, mid-city flips, military rentals), and Sacramento (California value: Oak Park trajectory, North Sac BRRRR, generous ADU lots). Each covers neighborhoods, strategy fit, and local underwriting factors.
How Investors Use Hard Money in California
Win a coastal flip with a days-fast close where certainty beats price.
Build ADUs under state law and refinance on combined rents.
Bridge a buy-before-sell in the country's most competitive market.
Loan Programs Available
Programs matched to the deal — leverage, property type, and timeline.
Frequently Asked Questions
Common questions about hard money lending in California.
Funding an Investment Property in California?
Get a clear term sheet before you commit — leverage, pricing, and timeline matched to your project.
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Related Resources
Loan programs, rates, and availability vary by state, lender, and applicant. Business-purpose loans secured by non-owner-occupied investment property only. Not an offer of financing. Not all applicants qualify.
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