Investment Property Loans in California

California’s Trusted Provider of Investment Property Loans

What Are California Investment Property Loans?

Investment property loans in California are financing solutions built for real estate investors—individuals, partnerships or entities—who buy, renovate or refinance properties to earn rental income, capital gains or both.

Unlike owner-occupied mortgages that hinge on W-2 verification and tight debt-to-income ratios, these programs place underwriting emphasis on the property’s appraisal value, projected cash flow and local market dynamics.

California’s tenant-friendly legal framework, rent-control ordinances and premium metro valuations (Los Angeles, the Bay Area, San Diego) shape rates, loan-to-value thresholds and fee structures. Typical advantages include:

Fast closings in as little as 7-10 days with hard-money and bridge products.
Light documentation on personal income—some loans approve on collateral alone.
Higher loan-to-value (LTV) ratios, often 65% of purchase or after-repair value.
Specialized debt service coverage ratio (DSCR) programs based on net operating income.
Flexibility for fix-and-flip, buy-and-hold, ground-up construction and portfolio expansion.

Recently Funded Deals in California

We’re proud of our fast funding and transparent approval process for California borrowers. Here are a few recently funded hard money loans in California:

Santa Rosa, California Hard Money Purchase Loan
Condominium

$330,000

San Francisco, California Hard Money Refinance Loan
Condominium

$150,000

San Diego, California Hard Money Refinance Loan
Condominium

$200,000

Riverside, California Hard Money Refinance Loan
Single Family Residence

$175,000

Santa Rosa, California Hard Money Refinance Loan
Single Family Residence

$375,000

Fresno, California Hard Money Refinance Loan
Single Family Residence

$425,000

Riverside, California Hard Money Blanket Refinance Loan
Industrial Condominiums

$600,000

San Francisco, California Hard Money Refinance Loan
Single Family Residence

$850,000

San Jose, California Hard Money Refinance Loan
Single Family Residence

$1,075,000

These success stories highlight our commitment to short closing times, flexible loan terms, and a streamlined loan process—wherever you are in Southern California or the Bay Area.

Investment Loans for California Real Estate Investors

With California’s competitive housing markets, investment loans differ markedly from primary-home mortgages in both structure and qualification. Owner-occupied products usually offer 80–90% LTV at 30-year terms, requiring extensive income verification. In contrast, investment loans are:

Asset-Based Underwriting: Approval relies on collateral value, after-repair value (ARV) or projected rent rolls instead of full W-2 documentation.
Shorter Terms & Covenants: Hard money and bridge loans typically run 12–24 months with interest-only payments and rollable fees.
Higher LTV Thresholds: Access up to 50–65% of purchase price or ARV for rehab, acquisition or refinancing.
DSCR Options: Qualify by net operating income, with minimal or no personal income checks.
Collateral-Only Deals: Some lenders approve purely on property equity, suitable for credit-challenged or portfolio-driven investors.

Common Uses for California Investment Loans

At Source Capital, we support investments across a wide range of property types in California, including:

Single-family residences
1-to-4-unit residential properties
Apartment buildings (5 or more units)
Condominiums
Vacation rentals (short term rentals)
Planned Unit Developments (PUDs)
Multifamily properties
Mixed-use properties
Commercial and industrial properties

Our investment property loans have helped Californians across the state. We’re proud to have financed:

Hard money purchase loans across various California cities.
Refinances completed in prominent markets like Los Angeles and San Diego.
Cash-out refinances for strategic equity extraction.
Successful condo and multifamily fix-and-flips with profitable outcomes

Compare Core California Investment Loan Types

At Source Capital, we offer several types of California investment loans. There are pros and cons to each type of investment loan, and some loans are a better fit for certain types of properties. Learn more about the different types of California investment loans below.

Hard Money & Fix-and-Flip Financing

California hard money loans and fix-and-flip loans are asset-based loans that are ideal for rehabs and quick closings. Typical loan terms include:

Funding in 7-10 days, LTV 65%, rates around 8.99-13.99%
Loan terms between 12–24 months, interest-only payments, rollable fees
Exit strategy guidance on resale

DSCR Loan Solutions for Rental Properties

Debt-service coverage ratio (DSCR) loans are based on your net operating income. California DSCR loans are ideal for buy-and-hold landlords, including house-hackets and multi-unit owners. Here’s how these loans work:

Qualify based on your net operating income (DSCR 1.0–1.25), 20-25% down, and no minimum credit score
Loan sizes range from $100,000 to $5 million with ~65% LTV

Bridge Loans for Acquisition & Refinance

Short-term bridge loans can help you capitalize on a great deal before stabilizing a property or securing permanent financing. California bridge loans offer favorable terms for investors who need financing as quickly as possible:

Short-term loans between 12–24 months, LTV up to 50–65%
Rapid underwriting—pre-approval in hours and funding in days
Interest-only structures with flexible payment or refinancing options

Cash-Out Refinance Options

When you need to tap into your existing equity, California cash-out refinance loans are ideal. Here’s what you can expect from a cash-out refinance loan:

Up to 50–65% LTV on existing investment properties
Competitive rates close to conventional loans
Clear fee breakdown, no hidden origination charges

Conventional Refinance & Rental Property Loans

These loans are ideal for investors with a stable portfolio, including a good credit score and low debt-to-income ratio. However, conventional refinance and rental property loans are structured differently than some other investment loans:

Fixed rates over 1–2 years, full amortization
Requires 2 years’ tax returns, 6 months of reserves
30–45 day closings, lower costs versus private money loans

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

FHA/VA Multi-Unit Loan Programs

Federal Housing Administration (FHA) and Veterans Affairs (VA) loans are only available to people who meet specific criteria. VA loans are only available to active-duty servicemembers, veterans, and eligible spouses. These loans offer zero down for eligible veterans.

FHA loan terms include:

Owner-occupied 2–4 units: Down payments from 0-3.5%, 580 credit score requirement
Allows rental income offsets for DTI calculations

Source Capital maintains full compliance with CA real estate lending regulations, clearly disclosing all loan terms, interest calculations, fees, and broker licensing information to ensure transparency and confidence.

Construction & Rehab Financing

California construction loans are designed for ground-up construction and major renovation projects. Loan terms include:

Rates starting at ~8.99%, interest-only during construction
Draw schedules tied to inspection milestones
Option to convert to permanent DSCR or conventional loan upon stabilization

Portfolio & Commercial Lending Strategies

Source Capital can also help investors who are looking to invest in a diverse portfolio of properties. We can help you maximize portfolio and commercial lending strategies with:

Customized packages for multi-property portfolios, mixed-use, and commercial assets
Flexible underwriting that considers aggregate cash flow, rent rolls, and your track record as a borrower
Loan amounts from $100,000 to $5 million or more
LTV up to 65%
Amortization options, bridge-to-permanent structures, refinance and syndication solutions

Why Choose Source Capital for Investment Property Loans?

We’re committed to helping California property investors secure quick, convenient funding. When you work with Source Capital for your investment property loan, you can expect:

Experienced Professionals: Our team has unmatched expertise in navigating California’s diverse real estate market. We ensure strategic financing decisions that benefit your investment portfolio.
Direct Lending Advantage: We eliminate the middleman, for faster lending, lower fees, and highly competitive interest rates. Maximizing your investment returns with CA investment property loans from Source Capital.
Fast Approvals and Funding: We understand that speed is critical in real estate investing. Get same-day loan approvals and funding in as few as 7-10 days, so you can capitalize on market opportunities.
Tailored Solutions: We offer flexible and personalized financing options tailored specifically to each investor’s unique objectives, from acquisition and renovation to long-term rental strategies.
Exceptional Customer Service: Our commitment to exceptional customer service has resulted in countless repeat clients and referrals. Our clients consistently highlight our professionalism, efficiency, and reliability in their testimonials.

Licensing, Disclosures, and Regulatory Compliance

California Investment Property Loans FAQs

What Is the Minimum Down Payment for an Investment Property in California?

The typical down payment requirements range from 25% to 35%, but we offer innovative alternatives, using equity from other properties or standalone refinances to consolidate equity efficiently.

Can I Get an Investment Property Loan with Poor Credit?

Yes, we offer flexibility for investors with past financial issues, including previous foreclosures or bankruptcies, enabling access to necessary funds.

What Is the Average Interest Rate for Investment Property Loans?

Secure interest rates from 8.99%-11.99% for first-position loans, with slightly higher rates for second-position loans offering competitive and attractive financing solutions.

How Quickly Can I Close on an Investment Property Loan?

Our loans typically close within 10 days, allowing you to capitalize on real estate opportunities swiftly and efficiently.

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

Our streamlined application process eliminates income verification and tax return requirements, providing fast pre-approval and funding for motivated investors with clear exit strategies.

What Types of Properties Can I Finance with a Loan?

We support a broad range of property types, including single-family residences, multifamily, mixed-use, commercial, and even vacation rentals.

What Is the 2% Rule for Investment Property?

The 2% rule suggests monthly rental income should be at least 2% of the purchase price, helping ensure profitable investment and loan feasibility.

How to Get Approved for a Investment Loan

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.

Get Funded Fast – Apply Today!

Provide us some brief information about your hard money needs and a decision maker will get back to you as soon as possible to discuss.

What We Offer

Same Day Approvals
Rates starting at 8.99% Interest
Poor Credit OK
No Debt to Income Requirements
No Prepayment Penalties
No Appraisal Fees
$100,000 to $5,000,000 Loan Amounts
Residential, Commercial, Industrial
1st & 2nd Trust Deeds
Up to 65% Loan-to-Value (LTV)
Up to 50% Combined LTV (2nd Loans)
Closings in 7-10 Days

NOTE: All loans are secured by real estate in AZ, CA, CO, TX and MN ONLY. We do not fund unsecured loans or loans for personal use. Please call us at 888.251.0861 if you are unsure of these parameters.

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