California Second Mortgage Loans

California’s non-judicial (court-free) foreclosure process applies to second-position trust deeds when borrowers default. Here’s the sequence:

1. Notice of Default (NOD): The junior lien lender records an NOD and mails it to the borrower. You then have 90 days to cure arrears.
2. Notice of Sale (NOS): If the default isn’t cured, the lender issues an NOS at least 20 days before the auction.
3. Auction: The property sells, and proceeds first satisfy the primary lien; the second lien lender collects only if funds remain.

Because second-position lenders face higher loss risk, interest rates reflect that exposure. To protect borrowers, the California Residential Mortgage Lending Act (CRMLA) and California Financing Law mandate:

• Full disclosure of all material loan terms up front
• Early intervention notices upon default
• Compliance with anti-deficiency protections under Senate Bill 458 after approved short sales on one-to-four-unit properties

These measures ensure you understand your rights and obligations throughout any foreclosure timeline.

Conventional home equity loans or HELOCs typically require pristine credit, extensive income documentation and weeks—or months—to close. By contrast, hard-money second-position financing delivers rapid underwriting and flexible credit overlays, focusing on your property’s asset value.

Here are common scenarios where hard-money seconds excel:

• Urgent repairs or seismic retrofits: Complete critical work before listing or refinancing.
• Cash-out for debt consolidation: Replace high-interest credit cards or personal loans quickly.
• Bridge financing for new purchases: Lock in a home when you haven’t yet sold your current property.

With no prepayment penalties and transparent, all-in interest rates covering origination, underwriting and trustee fees, you can compare true costs against conventional home equity options. Once permanent financing is secured, pay off your hard-money loan early without extra charges.

Source Capital makes it easy to apply for a loan with our simple four-step process. You can apply online and upload documents through our secure portal, and our simplified application process results in faster approval and funding times.

The application process starts with a brief 15-minute call. During this call, we’ll ask about:

• Your property address and estimated equity
• Loan purpose and contact details
• Any credit flags (foreclosure, bankruptcy, short sale)

You’ll receive a customized term sheet within 24–48 hours, which includes a rough estimate of your CLTV and interest rate range.

All your essential documents can be submitted online through our secure portal. You can submit everything through the portal, including:

• Pay stubs or year-to-date profit and loss statements
• Bank statements and asset documentation
• Title report and homeowner’s insurance declarations
• Completed Uniform Residential Loan Application (Form 1003)

If you have any questions, our team can answer them in real time.

Next, we’ll have an appraiser or broker verify the market value of your home. We use this appraised value, your first mortgage balance, and the requested loan amount to calculate your CLTV.

Our underwriters look at the property type, occupancy status and rental history, and borrower profile and credit overlays. We can typically approve your loan within one to two days after receiving your documents.

Once you’ve completed the initial parts of the application process, it’s time to:

• Arrange signing
• Review and execute loan documents
• Confirm title and closing prerequisites

We know you have options when it comes to choosing a hard money lender in California. That’s why we strive to offer the most flexible funding and favorable terms. When you choose Source Capital as your second mortgage lender, you’ll get:

• Easy Qualification: Our primary focus is on the value of your home and your first-position mortgage. We have no minimum credit score requirements and easily handle complex financial scenarios.
• Fast Funding: We cut out the middleman and lend directly to borrowers across the state. Traditional lenders can take months for approval, causing you to miss out on investment opportunities and fall behind on debts. Choose Source Capital to get instant pre-approval and funding within 7-10 days.
• Competitive Rates: Interest rates on hard money second mortgages in CA can skyrocket as high as 15%. Our rates start at just 11.99%.
• Superb Customer Service: We’re committed to supporting you through every step of the CA hard money second mortgage process. Get personalized support and expert guidance.

As direct lenders, we offer loans tailored to your unique situation and financial needs. Get flexible terms including:

• Timeline: Receive instant pre-approval and funding within 7-10 days.
• Interest rates: Second-position hard money mortgage interest rates range from 11.99% to 13.99%.
• Loan amounts: Secure funding from $100,000 to $5 million.
• Loan duration: These short-term financing solutions range from 12-24 months, allowing you funding for renovations, bridge loans, cash-out refinancing and other short-term needs.
• LTV: Borrow up 50% CLTV.
• Property types: Use owner and non-owner occupied, residential, multifamily, commercial, industrial, retail, or mixed-use properties in California as collateral for your private money loan.

We offer hard money second mortgages across the state of California. No matter where you reside, we’re your trusted source for funding. Get your loan in metropolitan cities including San Diego, Los Angeles, San Francisco, and San Jose, as well as smaller suburbs and quiet communities.