HARD MONEY LENDING SINCE 2007

The Proven Source For Hard Money Loans

A direct lender providing hard money loans with a simple, straight forward process.

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We offer loans secured by real estate with no prepayment penalties, no appraisal fees, and can fund in a matter of days.

Based in San Diego, California, Source Capital Funding has earned the reputation as a premier, direct hard money lender known for speed, reliability, and transparency. We are an asset-based hard money lender that offers hard money loans for property owners and investors secured by single-family, multi-family, commercial and industrial properties. Our process provides fast approvals, creative solutions, and competitive terms. With over 40 years combined experience, we have funded over $550M in loans secured by real estate in Arizona, California, Colorado, Minnesota and Texas since 2007.

Reputation Matters

Fast Decisions

As a direct hard money lender, our approval process is built for speed as we underwrite and make all decisions in-house. From the time we are initially contacted to the time the loan is funded, our streamlined process allows us to fund loans in a matter of days.

Proven Track Record

Since 2007 we have successfully funded over $550M in hard money loans secured by real estate. We have earned our reputation as a hard money lender known for speed, reliability, and fairness. Our team has the experience and ability to provide quick, direct answers to help expedite our client’s requests.

Well Capitalized

We’re a direct hard money lender with immediate access to capital to lend. Our company is backed by well established, accredited investors, so there is always capital available to fund our loans. We are able to close quickly and with full transparency.

Broker Collaboration

Brokers and real estate agents are the backbone of our business. We know and understand how important full transparency is throughout the process with your client. With access to our lending platform, you’re are aware of what’s going on with your client from origination to funding.

Frequently Asked Questions

What is a hard money loan?

A hard money loan is a type of short-term financing secured by real estate. Unlike traditional loans that are based on the borrower’s creditworthiness and income, hard money loans are based on the value of the property being used as collateral. They are provided by private lenders like Source Capital rather than traditional banks, allowing for quicker approval and funding.

What are the benefits of hard money loans?

Source Capital’s hard money loans offer several benefits to borrowers, including:

Speed: We can fund hard money loans within 7-10 days.
Easy qualification: Our hard money loans are accessible to borrowers with poor credit, little or no income and those with past bankruptcy, foreclosure, etc.
Simple process: At Source Capital, we offer a web-based, streamlined platform that allows for less paperwork and constant communication with our clients.
Direct source: We are the lender so the process from initial contact to funding is handled in-house which saves our clients time with a single point of contact.

Do you fund after repair value (ARV) loans?

We do not. We can help with the purchase of the property up to 65% of the “as is” value or purchase price, whichever is less. The funds for the rehabilitation of the property would have to be sourced elsewhere.

What types of hard money loans do you do?

All of our loans are secured by residential, commercial or industrial properties only. We do not fund unsecured loans (no real estate as collateral) or provide loans to purchase a home as a primary residence.

Whether you’re looking to purchase an investment property or are looking to use the equity in a real estate asset you already own, we may be able to help and have flexible options for you to choose from.

How do I apply for a hard money loan?

You have several options to apply: you can either complete our online loan submission, email us, or call us directly. We find that discussing your loan scenario over the phone is often the most efficient approach, as we can quickly assess how to best assist you once we have a few key questions answered. Contact us now to speak directly to a decision maker.

How long does the hard money loan process take?

Our hard money loans can be approved and funded much faster than traditional sources as we focus on the asset as security for the loan rather than borrower credit or financials.

As a direct money lender, Source Capital offers swift approval times, often within 24 hours, and can fund loans within 7-10 days of initial contact. Our streamlined hard money loan process and direct access to capital allow for quick decisions and funding, ensuring efficient transactions for our clients.

Can I qualify if I have poor financials?

Absolutely. As our main focus is centered on the property being used as collateral for the loan, financial strength is not a requirement to obtain a loan with us. We understand there is a reason client’s come to us and do our best to provide a loan option that will work for you, whatever the situation may be.

Do you do primary residence refinances with cash-out?

Yes! As long as the funds are being used for a bona fide business purpose, and you have substantial equity, we can help. Business purpose loans are defined as loans to: purchase, repair or improve real property for use in the Borrower’s business; acquire, improve or maintain certain non-owner occupied rental property; purchase, improve or repair tools, equipment, machinery, fixtures or furnishings used in Borrower’s business; fund operating capital (e.g., employee salaries) or purchase or pay for business inventory, supplies, rent, taxes, insurance or other related expenses; or to pay off, refinance or consolidate business debts.

Is there a minimum credit score to qualify for a hard money loan?

We have no credit score requirements. Unlike a bank, we are not focused on a number to dictate whether or not you can qualify for a hard money loan. We are focused on the real estate asset securing the loan, first and foremost.

At Source Capital, we work with all borrowers who have experienced past hardships that has affected their credit score. We understand that “life happens” and are committed to tailoring our hard money loans to suit your needs and will work closely with you throughout the process.

Do you do primary residence purchases?

We do not provide financing for primary residence purchases as we fund loans for business purposes only. Business purpose loans are defined as loans to: purchase, repair or improve real property for use in the Borrower’s business; acquire, improve or maintain certain non-owner occupied rental property; purchase, improve or repair tools, equipment, machinery, fixtures or furnishings used in Borrower’s business; fund operating capital (e.g., employee salaries) or purchase or pay for business inventory, supplies, rent, taxes, insurance or other related expenses; or to pay off, refinance or consolidate business debts.

How long does the loan process take?

Because we are a direct hard money lender, we typically can approve loans in 24 hours and fund loans within 7-10 days from initial contact. Our automated hard money loan process and direct access to capital allows for quick decisions and funding with minimal paperwork.

How do I know what my rate will be?

Currently, all of our hard money loans have fixed rates on our fist mortgages are from 8.99%-11.99% and 11.99%-13.99% on our second loans. As a general rule of thumb, the lower the loan-to-value (loan amount vs property value) and shorter the loan term, the lower the rate. Source Capital needs minimal information from you in order to provide you a written offer. It’s fast, easy and FREE to apply so start now.

What do I need to qualify?

All our loans are secured by real estate only. As an asset-based lender, our main focus is on the property being used as collateral for our loan. We have no minimum credit score or employment requirements and work with all borrowers, including foreign nationals.

What is the difference between hard money vs private money?

There is little to no difference between a private money loan and a hard money loan. In both cases, they are loans secured by real estate financed by individual investors instead of traditional (bank) sources.

The “hard” part of “hard money” refers to a hard asset, real estate, that is used as security for the loan. The “private” part of “private money” refers to the source of funding (private party vs a bank).

Unlike traditional mortgages or other types of secured loans, the approval process for hard or private money loans is much faster and less stringent, making them ideal if funding needs to happen quickly.

Where does Source Capital lend hard money?

As a hard money lender, Source Capital is both State and Federally licensed and offers loans secured by real estate in Arizona, California, Colorado, Minnesota, and Texas.

Loan Terms

INTEREST RATES	8.99% – 11.99% – First Position 11.99% -13.99% – Second Position	LOCATION	Arizona, California, Colorado, Minnesota and Texas only
LOAN AMOUNTS	$100,000 – $5,000,000	TYPES OF LOANS	Acquisition, Refinance and Cash-Out
LOAN DURATION	12-24 months	LIEN POSITION	First and Second Trust Deeds Only
ORIGINATION FEE	Starting at 2.0% of loan amount, depending on loan size and length of term	PROPERTY TYPES	Owner and Non-Owner Occupied Residential. Multifamily, Commercial, Industrial, Office, Retail, Mixed Use
LOAN TO VALUE	Up to 65% LTV in first position Up to 50% CLTV in second position	APPRAISAL FEE	None
CLOSING TIMEFRAME	10 business days or less	PREPAYMENT PENALTY	None