California Hard Money Interest Rates 3rd QTR

According to the hard money loan documents software company, Lightning Docs, the average interest rate for California hard money loans in the 3rd quarter of 2024 was 11.08%. The average loan amount was $962,579. These stats are the average of 1,467 short-term loans (including bridge, rehab, and ground-up construction) funded for investment properties in California between July 1, 2024 and September 30, 2024 by multiple hard money lending companies that use Lightning Docs as their preferred software provider to prepare loan documents.

Although California hard money interest rates tend to be lower than other states, the data includes a lot of 2nd mortgages, which typically have higher rates than 1st mortgages. 2nd mortgages are quite common in California. In most other states, 2nd mortgages are non-existent in hard money lending.

Here is a breakdown of average interest rates in California’s metropolitan areas:

Los Angeles Metro Area The average interest rate for Los Angeles hard money loans in the 3rd quarter of 2024 was 11.31%. The average loan amount was $955,415. Of the 646 total loans in the 3-month period, 494 were secured by properties in Los Angeles County, 126 in Orange County and 26 in Ventura County.

San Francisco Bay AreaThe average interest rate for Bay Area hard money loans in the 3rd quarter of 2024 was 10.80%. The average loan amount was $1,138,309. Of the 243 total loans in the 3-month period, 66 were secured by properties in Alameda County, 71 in Santa Clara County, 31 in Contra Costa County, 33 in San Mateo County, 29 in San Francisco County, and 13 in Marin County.

San DiegoThe average interest rate for San Diego hard money loans in the 3rd quarter of 2024 was 10.81%. The average loan amount was $976,154. The averages are derived from 268 loans secured by properties in San Diego County.

Inland EmpireThe average interest rate for Inland Empire hard money loans in the 3rd quarter of 2024 was 11.73%. The average loan amount was $631,718. Of the 114 total loans in the 3-month period, 68 were secured by properties in Riverside County and 46 in San Bernardino County.

SacramentoThe average interest rate for Sacramento hard money loans in the 3rd quarter of 2024 was 11.01%. The average loan amount was $515,779. The averages are derived from 22 loans secured by properties in Sacramento County.

Central ValleyThe average interest rate for Central Valley hard money loans in the 3rd quarter of 2024 was 10.84%. The average loan amount was $344,601. Of the 40 total loans in the 3-month period, 19 were secured by properties in Fresno County and 21 in San Joaquin County.