How to Get a Hard Money Loan in San Francisco

San Francisco real estate can move quickly, and traditional financing may not always match the timeline or flexibility real estate investors need. If you’re purchasing, refinancing, renovating, or accessing equity in an investment property, a hard money loan in San Francisco may provide an alternative to conventional bank financing.

Hard money loans are generally short-term, real estate-secured loans that place greater emphasis on the value and equity of the property than traditional lending criteria. At Wilshire Quinn Capital, we provide hard money and bridge loans for commercial and non-owner-occupied residential properties in California and nationwide. If you’re considering this type of financing, here’s how to get a hard money loan in San Francisco and what to expect during the process.

What Is a Hard Money Loan?

A hard money loan is financing secured primarily by real estate. Instead of relying primarily on factors such as income documentation, debt-to-income ratios, and credit scores, hard money lenders typically place significant emphasis on the underlying property’s value and available equity. This asset-based approach can make hard money useful for investors who need to:

- Purchase investment property quickly

- Refinance an existing real estate loan

- Access equity through a cash-out refinance

- Renovate or reposition an investment property

- Acquire property that may not qualify for conventional financing

- Complete a time-sensitive real estate transaction

Learn more about how hard money loans work.

How to Get a Hard Money Loan in San Francisco

Hard money lenders have different underwriting guidelines, but the process generally starts with the property and your proposed transaction. Here are the key steps.

1. Find a San Francisco Hard Money Lender

Start by identifying lenders that understand the San Francisco and Bay Area real estate markets. When comparing lenders, consider more than just the advertised interest rate. Review factors such as:

- Loan-to-value limits

- Minimum and maximum loan amounts

- Property types financed

- Loan terms

- Origination fees

- Closing timelines

- Geographic coverage

- Whether the company is a direct lender or broker

Working with a direct lender can be beneficial when timing is important because the company making the lending decision controls its own capital. Wilshire Quinn Capital is a direct portfolio lender with a San Francisco office serving real estate investors throughout Northern California and the Bay Area.

Choosing the right hard money lender in San Francisco involves evaluating loan terms, fees, property eligibility, and funding timelines. Learn how Wilshire Quinn Capital provides hard money loans for your business.

2. Determine Your Property’s Value and Equity

Property value is one of the most important factors when applying for a hard money loan.

Hard money lenders frequently use loan-to-value (LTV) to determine how much they’re willing to lend. LTV compares your loan amount to the property’s value. For example, if an investment property is worth $2 million and the requested loan is $1 million:

$1,000,000 ÷ $2,000,000 = 50% LTV

Lower LTV generally means the borrower has more equity in the property, which can reduce the lender’s risk. Wilshire Quinn’s current lending parameters provide financing of up to 60% LTV, subject to underwriting and the specifics of each transaction.

3. Identify the Purpose of Your San Francisco Hard Money Loan

Before applying, clearly define why you need financing. Hard money loans can potentially be used for several investment-related purposes.

Investment Property Purchases

A hard money loan may allow an investor to move quickly when purchasing a San Francisco or Bay Area property, particularly when conventional financing would take too long.

Refinancing

Investors can potentially use hard money to refinance existing real estate debt when a traditional refinance isn’t immediately available.

Cash-Out Refinancing

Property owners with sufficient equity may be able to access a portion of that equity for business or investment purposes.

Property Rehabilitation

Hard money can be particularly useful when a property requires improvements before it qualifies for conventional financing.

Bridge Financing

A bridge loan can provide temporary financing while an investor works toward a longer-term solution, property sale, or refinance.

4. Make Sure the Property Qualifies

Hard money lenders can finance a broader range of properties than many conventional lending programs, but every lender establishes its own guidelines. Wilshire Quinn considers financing for property types including:

- Non-owner-occupied single-family properties

- Condominiums

- Multifamily properties

- Apartment buildings

- Office properties

- Retail centers

- Industrial properties

- Warehouses

- Mixed-use properties

- Hotels and motels

- Healthcare properties

- Special-purpose properties

- Parking garages and lots

This flexibility can be particularly useful in the Bay Area, where investment opportunities range from residential rental properties to multifamily, mixed-use, retail, office, and other commercial assets. Review Wilshire Quinn’s current lending options for additional information.

5. Prepare a Clear Exit Strategy

One of the most important parts of obtaining a hard money loan is explaining how you intend to repay it. Because hard money is generally short-term financing, lenders want to see a realistic exit strategy. Common strategies include:

- Selling the property: An investor renovates or repositions a property and sells it.

- Conventional refinancing: An investor improves or stabilizes the property before refinancing into longer-term financing.

- Selling another asset: Proceeds from another real estate transaction may be used to repay the loan.

- Long-term financing: A bridge loan can provide temporary capital while permanent financing is arranged.

Your exit strategy should be realistic for the property’s condition, business plan, loan term, and current real estate environment.

6. Gather Information About the Property

Hard money applications can often be more streamlined than traditional bank financing, but borrowers should still be prepared to provide detailed information. Your lender may request information such as:

- Property address

- Property type

- Purchase price

- Estimated market value

- Current loan balance

- Requested loan amount

- Intended use of funds

- Renovation budget

- Borrower information

- Proposed exit strategy

Having this information ready can help expedite the lender’s initial evaluation.

7. Submit Your Hard Money Loan Application

Once you’ve selected a lender and gathered the necessary property information, the next step is submitting your loan request. Because the property is a major component of underwriting, an experienced hard money lender can often provide an initial indication relatively quickly.

San Francisco investors can submit a loan request to Wilshire Quinn Capital for consideration.

How Fast Can You Get a Hard Money Loan in San Francisco?

One of the biggest reasons investors use hard money is speed. Traditional commercial and investment-property loans can require extensive documentation and underwriting. Hard money lenders may be able to move considerably faster. Wilshire Quinn currently provides pre-approval in approximately 24 hours and typically funds qualifying transactions in approximately five to seven days.

Actual funding times vary depending on factors such as the property, valuation, title, documentation, transaction complexity, and underwriting. In a competitive market such as San Francisco, a faster financing process can be valuable when an investment opportunity has a short closing timeline.

What Credit Score Do You Need for a San Francisco Hard Money Loan?

There isn’t one universal credit score requirement for every hard money lender. Unlike conventional financing, hard money underwriting tends to place greater emphasis on the property’s value and available equity.

Creditworthiness may still be considered as part of the overall transaction, but a lower credit score doesn’t necessarily eliminate the possibility of obtaining financing. The lender will typically consider the entire scenario, including:

- Property value

- Available equity

- LTV

- Loan amount

- Property type

- Borrower profile

- Loan purpose

- Exit strategy

This can provide additional flexibility for real estate investors who don’t fit traditional bank lending guidelines.

While credit score requirements vary among hard money lenders, approval often depends on more than credit alone. Learn more how to qualify for a hard money loan and what lenders consider during the approval process.

How Much Down Payment Do You Need for a Hard Money Loan?

There is no single down payment requirement that applies to every hard money loan. Instead, lenders typically establish an acceptable maximum LTV. For a property purchase, the difference between the lender’s maximum loan amount and the purchase price generally needs to come from the borrower or another acceptable source.

Refinancing works differently because the borrower may already have significant equity in the property. The required equity will ultimately depend on the lender, property, transaction, and underwriting.

How Much Does a Hard Money Loan Cost in San Francisco?

Hard money financing generally costs more than conventional bank financing. Borrowers should evaluate the complete cost of the loan rather than focusing only on the interest rate. Costs can include:

- Interest

- Origination points

- Valuation or appraisal expenses

- Title and escrow costs

- Legal or documentation expenses

- Other applicable closing costs

Wilshire Quinn’s current bridge lending parameters list interest rates generally ranging from 9% to 12% and origination fees generally ranging from 1 to 5 points.