California Hard Money Lender

We offer first and second trust deeds with no prepayment penalties, no appraisal fees, and can fund in a matter of days.

Source Capital Funding is a California licensed, direct lender known for speed, reliability, and commitment to it’s clients. With over 40 years experience, we’re a well backed private lender that has funded over $550M in private loans since 2007.

Fast Decisions

As a direct 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 loans secured by real estate. We have earned our reputation as a 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 lender with immediate access to capital to lend. Because our company is backed by well established, accredited investors, there is always capital available to fund our loans. We are able to close quickly and with full transparency.

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	2.0-4.0% 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

There are no minimum credit scores, employment requirements or financial minimums to qualify for a loan.

*All loans are secured by real estate for business purposes only

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How It Works

1. Apply Online

It takes minutes to complete our simple, online application to get prequalified for a loan.

2. Get Approval

After underwriting your loan, we will provide you a written Loan Commitment providing loan terms for approval.

3. Loan Funded

In a matter of days, not weeks like most lenders, the loan is funded through escrow and funds wired to you directly.

4. Pay Monthly

You make monthly payments via mail, phone or direct deposit. It’s that easy.

California Hard Money Lender FAQs

Are hard money loans regulated in California?

Yes, California hard money loans are regulated by the California Department of Real Estate (DRE) and the California Department of Financial Protection and Innovation “DFPI). These regulations ensure lenders adhere to specific guidelines to protect borrowers. Make sure you work with reputable California hard money lenders to ensure a smooth and safe borrowing experience.

How do hard money loans work in California?

Hard money loans in California are asset-based loans typically used for short-term financing. They are secured by real estate property and are often used for property investments, renovations, or bridging the gap between financial transactions.

At Source Capital, our main focus is on the real estate for loan approval, not your credit or financial history. With a proven track record of over $550M funded since 2007, we’re here to help. Whether you have poor credit, a history of bankruptcy or foreclosure, are a foreign national, or are self-employed we have creative solutions for financing.

What are the typical terms of a hard money loan in California?

Hard money loans in California can vary greatly with interest rates between 9% and 15%, depending on the scenario.

Source Capital offers some of the most favorable terms in the industry, with interest rates starting at just 8.99%. All our loans are amortized over 30 years and due in 1 or 2 years. We have no prepayment penalties so the loan can be repaid at any time with no additional interest payments owed.

What types of properties can be financed with a hard money loan in California?

At Source Capital, our team of experienced California hard money lenders can help you finance a variety of residential and commercial properties, from single family residences to industrial complexes.

Here are just some of the properties we can help you finance with a hard money loan in California:

Residential properties:

Apartments and condominiums
Multi-family units like complexes and planned communities
Single-family homes
Duplexes, triplexes, and quadruplex properties

Commercial properties:

Office spaces (businesses, executive suites, medical offices)
Industrial zones (distribution centers, warehouses, manufacturing factories)

What happens if you default on a hard money loan in CA?

California hard money loan contracts usually include a default interest rate clause, meaning that if you default, the interest rate can significantly increase. This gives borrowers a short period to balance the loan. If the loan remains in default, lenders are authorized to foreclose on the property used as collateral, and any paid portion of the loan becomes forfeited.

In California, state laws require that all foreclosure processes be handled outside of the court system in a non-judicial foreclosure.

What are the benefits of working with California hard money lenders?

Whether you’re in Northern California or Southern California, working with California hard money lenders like Source Capital offers several outstanding benefits:

Speed: Source Capital can fund hard money loans in days while other California hard money lenders can take longer.
Flexible eligibility criteria: California hard money loans with Source Capital are accessible to borrowers with less-than-perfect credit or unconventional income sources.
Secured by collateral: Your loan is secured by the equity in the property.
Opportunity for property investment: California hard money lenders empower borrowers to take advantage of lucrative real estate and other business opportunities quickly.

How do I choose the right hard money lender in California?

With so many options available, choosing the right hard money lender in California can be difficult. It involves researching potential lenders, reading reviews, comparing loan terms, and evaluating their experience and reputation in the market.

At Source Capital, we offer favorable fixed interest rates and fast approval and funding for California hard money loans. With extensive knowledge of the California real estate market and over 300 five-star Google reviews, we’re here to help you every step of the way.

How can I get approved for a hard money loan in California?

Unlike traditional bank loans, getting approved for a hard money loan is straightforward, streamlined, and designed to save you time.

To get approved for a hard money loan in California, simply follow these steps:

Fill out our hard money loan application.
Provide all details about the property and your loan request.
Submit your application—within 24 hours, we will get back to you with a written offer.
Upon acceptance, you will receive your funding within 7 to 10 days.
Make monthly repayments via mail, phone, or direct deposit once your loan is issued.

Source Capital works diligently to structure our California hard money loans on a case-by-case basis, creating loans with your interests and needs in mind. This means you can rest assured knowing that you will receive the funding you need under the best terms available for your current situation.

Looking for hard money loans in other states? We also offer hard money loans in Arizona, Colorado, Minnesota, and Texas.

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.

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.

Is there a minimum credit score requirement 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.

What type of loans do you do?

All our loans are secured by first and second deeds of trust (mortgages) on real estate only in AZ, CA, CO, MN and TX for business purposes only from $100K up to $5M. Examples of business purpose loans are 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.

We do not offer loans for:

Ground-up construction projects
Personal use (pay bills, improve primary residence, medical collections, etc.)
Primary residence purchases
Land purchases or refinances
Special use/single purpose properties (church, car wash, dry cleaner, gas station,, etc.)
Hospitality properties (restaurant, hotel, motel, etc.)
After repair value (ARV) and/or provide funds for the purchase AND rehab costs
Rural areas of the states we lend in
Borrowers with no real estate as collateral (unsecured loans)

We understand every scenario is different. Contact a decision maker directly at 888.334.6636 to see if we can help with your request for financing.

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.

What areas in California do you lend in?

We are based in San Diego, California and know every inch of our great State. We lend throughout California and mainly focus on more urban than rural areas. Los Angeles, San Diego, San Francisco, Stockton, Oakland, San Jose, Sacramento, Fresno, Long Beach, Bakersfield, and Anaheim are just a few of the cities we lend in and their respective outlying areas.

Client Testimonials

“We were very pleased with the service we received from Source Capital. Communication was clear and responsive, funding was quick, and terms were as agreed and proposed.”

Brian OverstreetPresident, Advera Health Analytics

“Sacha and his team were on point from our first call to funding. They were professional and easy to work with. We will definitely be using them for our future transactions”.

Mark O’ToolePresident, Pacific Coast Home Mortgage & Real Estate Inc.

“The staff at Source Capital has helped me create new income streams. They are consistent, direct and deliver every time.”

Michael KornAgent, Keller Williams Realty

“As a lender myself, working with Source Capital shows that there are still a lot of good people in our industry, and we will definitely be in connection to do future business together. Job well done.”

Anthony TrujilloMortgage Broker, Paramount Partners

“I have never dealt with a hard money lender before but I can tell you my experience with Source Capital was very positive. I highly recommend”

Courtney RothClient

“Recently completed another flawless transaction with Source Capital. Why would anyone want to go anywhere else? They’re the best.”

Marianne BordognaAgent, Keller Williams Realty

“The team at Source Capital Funding was fantastic. Their professionalism, speed and solid loan terms is why I will be coming back to close more business with them.”

Sergio AbbudSenior Loan Officer, Better Rate Mortgage

“The team at Source are consummate professionals who work efficiently and effectively. Simply stated- truly exemplary and professional people”

Paul ElamOwner, San Diego’s Real Estate

“Source Capital has been an absolute pleasure to work with throughout. These guys are on top of their game.”

Tyler HansonAssociate Broker, Cushman & Wakefield

“In all my years, I can confidently say they are the most professional, prompt, courteous, and efficient private lender I have ever worked with!”

Greg ShieldsOwner, GSI Appraisals

“They were very responsive and extremely helpful and would certainly use them again. I highly recommend their services.”

Alvin FuchsAgent, Keller Williams Realty

“Highly recommend Source Capital Funding if you need money fast and you value efficiency. I will go back to them again if I need funding in the future. “

Kendall HeathClient

“I have always had a highly professional and honest experience with everyone on their team and would recommend to anyone looking for financing.”

Andrew BellahOwner, The Bellah Group

“They are always so patient, helpful, and professional. and have helped me so much! This can be such a stressful process, but they make it all so easy.”

Lauren MarcusClient

“Smooth and fast transaction as the loan was funded in 8 days. They are a pleasure to work with – Strongly Recommended.”

Borna EftekariAgent, Farmers Insurance

Hard Money Loans in California

Source Capital is a premier California hard money lending company. Founded in 2017 and based in San Diego, we provide financing up and down the state, from Eureka to the southernmost border of California. As a direct private hard money lender, we specialize in hard money loans in California, Arizona, Texas, Colorado and Minnesota.

We’re committed to helping our clients access the financing they need to pursue their real estate endeavors. Whether you’re hoping to immerse yourself within the commercial real estate industry or you’re interested in beginning a home flipping business, our experienced team of experts can help you navigate the loan process. We work diligently to ensure you receive the capital you need to begin your real estate transaction with immediacy.

From refinancing to purchase transaction processes, our clients have come to trust working with Source Capital, a top California hard money lender. We’re the trusted source for California hard money lending, and committed to helping our clients access the financing needed for their real estate business ventures. With simple guidelines, flexible terms, and faster approval processes, our hard money loans are hassle free alternatives to conventional loans.