Conventional loans are underwritten around you: credit score, income, debt-to-income ratio, and a stack of documentation. Approval can take 30 to 60 days.

Hard money flips that priority. The property's value and your exit strategy matter more than a credit score. That trade-off buys you speed, fewer documentation hurdles, and access even with credit challenges or unconventional deals — at the cost of a higher rate and origination points, since the lender is taking on more risk over a shorter term.

There's no universal cutoff. Many hard money lenders will work with borrowers who have credit issues, as long as there's a clear exit strategy — and Hanover MC arranges financing with trust deed investors who take the same approach. Most still pull credit, usually to confirm identity and flag open judgments, not to enforce a minimum score.

Most hard money loans close within 2 to 4 weeks once title work and appraisal wrap up.  Business purpose owner-occupied deals or more complex transactions typically take longer.

Actual closing times vary based on property type, documentation, and title or appraisal turnaround — ask for a current timeline estimate on your specific deal.

Pricing varies by property type, loan-to-value, location, and exit strategy. Across the California hard money market, interest rates commonly fall in the high single digits to mid teens. Points (origination fees) can run as low as 1 to 3 percent on Hanover MC transactions, though loans under $250,000 are priced under a special structure — still higher than a conventional mortgage overall, reflecting the risk and short term.

Every deal is priced individually — Hanover MC arranges term loans, bridge loans, and permanent loans with no upfront fees, so treat the ranges above as a general guide, not a quote for your specific deal.

Many lenders base the loan on ARV rather than as-is value. Across the industry, hard money LTV typically tops out somewhere between 60 and 75 percent, depending on the lender and property type — which means borrowers should plan on bringing meaningful equity to the table, often in the range of 15 to 40 percent of the purchase or project cost. Hanover MC evaluates leverage case by case — see current guidelines on the hard money loans page or get exact numbers through a quote request.

No. Common uses include bridge financing between property purchases, ground-up construction and land financing, commercial real estate acquisitions, rental property purchases where timing matters, and deals that don't fit conventional credit or documentation requirements. Hanover MC underwrites a wide range of property types, from small-balance commercial to investment residential — see the full breakdown of hard money loan programs.

It's worth understanding, either way. A direct lender underwrites and closes the loan in its own name, funding it either from its own capital or a line of credit, and often selling the loan to trust deed investors afterward. A broker instead matches your deal with private trust deed investors willing to fund it directly.

Hanover MC is a California-licensed hard money specialist — a private money mortgage brokerage focused specifically on business purpose hard money loans. Rather than being limited to one lender's guidelines, Hanover MC has cultivated a network of qualified, accredited trust deed investors who actively seek to fund the loans it underwrites.

Hard money loans are short-term by design, so you need a clear exit strategy — sale, refinance, or another repayment source lined up before you close. Missing the term can mean extension fees or a rate bump. Ask about extension options before you sign, not after. On the other end, prepayment varies by lender — Hanover MC loans carry no prepayment penalty, so you can pay off early without a fee if you close a flip ahead of schedule. Hanover MC structures loan terms, including balloon and amortization schedules, to match your timeline — see the term loans page for current structures.