Asset-Based Loans in California

Collateral-driven loans are different from credit-based loans because they’re secured using collateral. You can learn more about the differences between these two loan types below.

Collateral-driven loans are underwritten on collateral value, ARV projections, LTV ratio, and borrower equity. The only documentation you need to provide are property photos, renovation budgets, and evidence of equity. Decisions can be locked within 48 hours and valuation is based on an appraisal or broker price opinion.

Credit-based lending is based on your credit score and income. Lenders require extensive documentation, including tax returns and other income documents. Getting approved for a credit-based loan can take weeks to months, and rates and fees may shift during the underwriting process. These loans are ideal for owner-occupied or conforming mortgages.

California asset-based financing is popular among investors who rely on fast approval and funding times to stay active in the real estate market:

• Fix-and-Flip Investors: Fix-and-flip investors can borrow up to 65% ARV on interest-only terms, with flexible draws for rehab milestones.
• Builders & Developers: Builders and developers can access draw-based financing for acquisition and construction costs with terms up to 24 months.
• Equity-Seeking Owners: Tap up to 65% LTV for cash-out refinances that can be used for emergency expenses, debt consolidation, and acquisitions.

At Source Capital, we streamline approval and funding times thanks to our simplified loan process. Learn how you can secure a California asset-based loan in four simple steps.

Complete our user-friendly online application with your property address, loan purpose, and borrower details. You can upload documentation—including appraisals, project photos, renovation budgets, and alternative income documentation—through our secure online portal.

Once you’ve submitted everything, you’ll receive a loan estimate with your projected LTV, interest rate, and origination fee.

We’ll order an appraisal to verify the current market value of your property. In some cases, we’ll use a broker price opinion (BPO) for valuation. We also look at local comparables and post-repair projections to fine-tune your LTV. We receive appraisal feedback in as little as 48 hours to keep your project moving.

Next, we’ll issue a conditional approval within 24–48 hours to lock in your interest rate range, origination fee, and term. LTV requirements may vary depending on project complexity, location, and borrower history.

You’ll receive a complete term sheet that includes compliance disclosures and the details of your loan.

The last step is signing your loan documents, which you can do electronically from anywhere in California. Once you’ve signed, you should receive funding in 10 days. Specialized compliance checks can result in longer funding times.

Since you get to see all the details of your loan up front, you can enjoy no hidden costs with your California asset-based loan.

At Source Capital, hard money loans are our specialty. We’ve funded over $500 million in loans to investors and property owners across the country. When you work with us, you can depend on:

• Lending Expertise: Our team has a combined 40 years of experience in finding creative solutions to help you get the financing you need. We can provide expert guidance and navigate complex lending scenarios.
• Easy Eligibility:We’re primarily interested in the value of the property used to secure your loan rather than your employment or credit history. Whether you have poor credit or finances or a history or bankruptcy or foreclosure, we can help.
• Fast Funding: As direct lenders, we can secure your financing in a matter of days. All decisions and underwriting is done in-house, no middleman required.
• Competitive Interest Rates: We’re committed to providing you with transparent, competitive terms. Our interest rates start at just 8.99% for first-position loans and 11.99% for second.

Our flexible loans are tailored directly to your financial situation and unique needs. Discover our terms for asset-based loans in California:

• Timeline: You’ll be instantly pre-approved for your loan and funded within 7-10 days.

• Interest rates: Interest rates for first-position loans range from 8.99% to 11.99% and second-position loans range from 11.99% and 13.99%.

• Loan amounts: We fund loans from $100,000 to $5 million.

• Loan duration: Asset-based loans in california have short terms ranging from 12 to 24 months.

• LTV: Borrow up to 65% LTV for first-position loans and 50% CLTV for second-position loans.

• Property types: Secure your loan with owner and non-owner occupied, residential, multifamily, commercial, or mixed-use properties.
  

• Prepayment penalty: None—we’ll never fine you for paying off your loan early.