California Multi-Family Loans

Choose Source Capital for Fast, Reliable, and Flexible Multi-Family Loans

What Are California Multi-Family Loans?

Hard money multifamily loans are short-term loans secured by multifamily properties like apartment buildings, duplexes, triplexes, fourplexes, and larger apartment complexes. At Source Capital, we offer these loans to help real estate investors secure rapid, flexible funding. Choose multi-family loans for property acquisitions, renovations, to refinance existing debts, for comprehensive redevelopment projects and more.

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.

How Multi-Family Loans Work in California

California multi-family loans start with a loan application that includes property, financial, and borrower information:

Net operating income (NOI)
Debt-service coverage ratio (DSCR)
Rent rolls
Appraisals and environmental reports
Renovation scopes
Borrower profile, including tax returns, credit history, financial statements, and project experience

Our underwriting team will evaluate market rents and vacancy projections, operating expenses and replacement reserves, loan-to-value (LTV) or loan-to-cost (LTC) ratios, borrower liquidity, and sponsor track record.

Different types of loans come with different timelines:

Bridge/Hard Money: 5–10 days
Conventional/Credit Union: 30–60 days
Agency (Fannie Mae/Freddie Mac): 45–60 days
HUD 221(d)(4) and 223(f): 60–90 days

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

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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Eligible Property Types for Multi-Family Financing

There are various types of properties that are eligible for multi-family financing in California, including small-scale and large-scale properties.

Small-Scale Properties:
- Duplexes, Triplexes, Fourplexes (owner-occupied or lightly managed)
Larger & Specialized Assets:
- Mid- to large-scale apartment buildings (5–200+ units)
- Mixed-use developments (residential over retail/commercial)
- Mobile home parks and manufactured housing communities
- Affordable and workforce housing

Overview of Core Loan Categories

Conventional Bank & Credit Union Loans
- LTV: up to 75% | Term: 20–30 yrs | Rate: from 5.75% | Recourse: required
Agency Loans (Fannie Mae & Freddie Mac)
- LTV: up to 80% (65% for small balance) | Term: 5–30 yrs | Rate: ~5.6% | Recourse: non-recourse
- Small Loan programs ($1M–$6M) and affordable set-asides
HUD/FHA Multifamily Programs
- 221(d)(4): up to 65% LTC
- 223(f): up to 65% LTV
CalHFA & State-Backed Financing
- Below-market rates, subordinate gap funding, tax-exempt bond options
- AMI: 30–120% eligibility
Bridge & Portfolio Loans
- Terms: 12–24 mos | LTC: up to 80% | IO payments | Rates: 8.99–13.99% | Close: 5–10 days
Private & Hard Money Loans
- Underwriting: asset-based | LTV: up to 65% | Terms: 12–24 mos | Rates: 8.99–13.99% | Close: 7-10 days

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

Key Loan Features and Terms

California multi-family loans are designed with flexible terms to fit a wide range of investors. Here are some of the key loan features and terms:

Loan Size: $100,000 to $5 million or more
Rates: 8.99% (stabilized) to 13.99% (hard money)
Recourse: Agency/HUD non-recourse; bank/bridge/hard-money recourse
Prepayment: Yield maintenance or step-down penalties

Specialized and Value-Add Programs

Taking advantage of specialized and value-add programs can help you reduce the cost of energy- and water-efficient upgrades and increase occupancy.

Affordable & Workforce Housing

Affordable and workforce housing helps provide access to affordable housing for lower-income families. These projects are often funded through tax-exempt affordable housing bonds or subordinate gap financing.

Green Financing Incentives

Green financing incentives are typically offered in the form of rate buydowns or fee credits for “green” projects. These incentives encourage investors and builders to install energy- and water-efficient upgrades, utilize solar power, and maintain LEED certification.

Foreign National & Entity Borrowers

Foreign national and entity borrowers—including LLCs, corporations, and individual foreign nationals—can secure financing. Keep in mind that additional documentation and currency control may be involved, so this financing is typically more complex.

Regulatory and Compliance Snapshot

California multi-family loans are governed by Uniform Multifamily Regulations (UMR) and Multifamily Housing Program (MHP). Regulatory agreements enforce long-term affordability for income-restricted units, and program compatibility is ensured through waivers when funding sources like tax credits overlap.

Application and Approval Process

The loan application and approval process is relatively straightforward, but there is some documentation required:

Submit Document Package: Rent rolls, operating statements, tax returns, bank statements, two years of audited and reviewed financials
Property Due Diligence: Appraisals, environmental site assessments, engineering reports
Project Budget & Schedule: Required for bridge of HUD construction loans
Underwriting Focus: ≥90% occupancy, DSCR thresholds, LTV/LTC caps, sponsor experience
Timeline by Product: 7-10 days for hard money to 3 months for HUD construction

Why Choose Source Capital for Your Multi-Family Loan?

We’re dedicated to finding solutions that work best for your unique needs and financial circumstances. When you choose Source Capital as your trusted loan experts, you can count on:

Extensive Industry Experience

Source Capital boasts over 40 years combined expertise in hard money lending, successfully funding numerous multifamily projects. Our roster of consistently satisfied clients and successful loans speaks for itself.

Flexible Eligibility

While traditional loans are secured by a borrower’s credit score, cash flow, and other financial details, CA multi-family loans are secured by multi-family property. We have no minimum credit scores or financial requirements. If you have poor credit or financials, a history of bankruptcy, or other concerns, we’re here to help.

Competitive Interest Rates and Transparent Terms

As direct lenders, we’re able to provide the most favorable terms possible, like interest rates starting at just 8.99%. Our loans agreements feature clearly outlined and transparent fee structures and terms, so you get clarity throughout the duration of your loan.

Efficient Processing and Reliable Funding

Leveraging our streamlined in-house underwriting process, Source Capital guarantees quick decisions and dependable funding, aligning seamlessly with your immediate and strategic financial objectives.

Expert Support

We’ll provide you with personalized support and expert guidance throughout every step of the California multi-family loan process.

Source Capital: Empowering your investments through reliable, flexible, and fast hard money multi-family loan solutions.

Source Capital’s Multifamily Loan Offerings

Our highly-flexible loan solutions can satisfy a range of needs. Get financing from Source Capital with terms including:

Loan Amounts: Get loan amounts ranging from $100,000 to $5 million to meet your precise investment requirements.
Loan-to-Value (LTV): First-position loans are typically structured at 65% LTV, with adjustments based on property conditions, location, and specific borrower profiles.
Interest Rates: While industry interest rates can get as high as 15%, our competitive interest rates range from 8.99% to 11.99%.
Loan Terms: Our short-term loan durations range from 12-24 months with interest-only payments and a final balloon payment at maturity, allowing investors strategic financial flexibility.

Eligible Property Types

Secure your multi-family loan using a range of property types:

Duplexes, triplexes, fourplexes, and large-scale apartment buildings.
Properties undergoing substantial renovations, improvements, or repositioning.
Non-conforming properties that do not meet the strict criteria of traditional lenders.
Multifamily assets designated for residential or commercial use

Frequently Asked Questions

What Is a Multi-Family Loan?

A multi-family loan is a short-term hard money loan secured by properties like apartment buildings or duplexes, helping investors with acquisitions, renovations, and refinancing.

Is It Easier to Get a Loan for a Multifamily Property?

Yes, Source Capital focuses on the property’s value, not your financial history, making it easier for investors even with poor credit to secure a multi-family loan.

How Much Down Payment Is Required for a Multi-Family Property in California?

Down payment requirements can vary, but Source Capital typically offers loans up to 65% LTV, ensuring flexible acquisition possibilities for borrowers.

Why Should I Choose Source Capital for a Multi-Family Loan?

With over 15 years of expertise, competitive interest rates, and a streamlined process, Source Capital is your trusted partner for fast and reliable funding in California.

Who Is the Biggest Multifamily Lender?

While specific rankings can change, Source Capital’s extensive experience and successful funding of multi-family projects position it as a top choice for multi-family lending in California.

What Is Considered Multi-Family in California?

Multi-family properties include duplexes, triplexes, and apartment buildings, catering to both residential and commercial uses, with flexibility for non-conforming or redeveloped properties.

How to Get Approved for a Bridge 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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