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Can I Get Approved for a Hard Money Loan with Bad Credit?

If you have lackluster credit but you need a real estate loan, you’re probably wondering: can I get approved for a hard money loan if I have bad credit? Perhaps you’ve gone through a bankruptcy or a foreclosure, which has negatively impacted your credit score. Even though you may now be on sound financial footing, a prior financial issue could still affect your ability to obtain a real estate loan. Although the idea of trying to find a loan with a low credit score may seem daunting, you still have options.

Why Bad Credit Matters with Traditional Loans

If you’ve looked into getting a traditional loan, you probably understand how detrimental poor credit can be in getting your loan approved. Serious medical emergencies that have delayed your ability to earn money, a failed business, or mounting debt can quickly damage your credit score. Fortunately, a low credit score isn’t necessarily a bad thing when it comes to getting approved for a hard money loan.

The lack of a credit history may also be preventing you from receiving a traditional loan. Building a strong credit file is an ongoing record of your ability to pay off debt in a timely manner. If you do not have a credit history or if you haven’t been able to pay off past debts, a lender is taking a bigger risk by giving you a loan. Thus, your loan application is more likely to be rejected by a traditional lender when you have a low credit score.

Can I Get Approved for a Hard Money Loan with Bad Credit?
Can I Get Approved for a Hard Money Loan with Bad Credit?

Why Bad Credit Won’t Prevent You from Getting a Hard Money Loan

Hard money lenders are more focused on the underlying value of the real estate asset securing your loan, rather than your personal credit history. As a result, hard money lenders typically accept loan applications from a wide variety of applicants.

Depending on which hard money lender you’re working with, there may be other factors besides your credit score. For example, being able to make a sizable down payment of 30% to 50% will increase your chances of getting approved. If you are an experienced real estate investor with a track record of success, a lender could view your application favorably, regardless of your credit score or past financial issues.

Find the Hard Money Loan That’s Best for You

No matter what your credit score, you may have more lending options available through a hard money lender. You may be able to obtain a hard money loan with poor credit, as long as you meet other requirements, like a substantial down payment in the property you are purchasing, or significant equity in a property that you are pulling cash out of.

If you want to find out what your hard money lending options are, contact Wilshire Quinn Capital. We’ve helped a wide variety of borrowers obtain the financing they need in a matter of days. Call 619-872-6000 to speak with a loan representative or visit our website at www.wilshirequnn.com to submit your loan request.

  • Funding typically in 5-7 business days
  • Loan Amounts from $200,000 to $20,000,000

  • Interest Rates from 8% to 10.5%
  • Loan Term: 3 – 24 months

  • Commercial & Residential (non-owner occupied) Real Estate

  • Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
  • Foreign National Loans Available


About Wilshire Quinn

Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.

Recently Funded Hard Money Loan Transactions

Loan Amount: $15,575,000 Loan Type: Blanket Construction Property Type: Industrial Loan-To-Value: 62% Term: 12 Months
UKIAH, CA Loan Amount: $6,575,000 Loan Type: Purchase Property Type: Self Storage Loan-To-Value: 61% Term: 7 Months BONITA, CA Loan Amount: $3,450,000 Loan Type: Purchase Property Type: Office Loan-To-Value: 61% Term: 18 Months LOS ANGELES, CA Loan Amount: $10,675,000 Loan Type: Refinance Property Type: Parking Structure/Retail Loan-To-Value: 52% Term: 12 Months

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