California Owner-Occupied Loans

Quick Bridge Loan Solutions for Owner Occupied Real Estate Deals

What Is a California Owner-Occupied Hard Money Loan?

A California owner-occupied hard money loan is a short-term, private-money mortgage designed exclusively for your primary residence. Unlike conventional financing that stalls when credit dips or documentation gets complex, these loans lean on the equity you’ve built in your home. Key elements include:

Fast funding: Closings in 7-10 days, so you won’t miss an auction or contingency deadline.
Equity-based underwriting: We focus on your Loan-to-Value (LTV) ratio, not your credit score.
Flexible income proof: Use bank statements, tax returns showing business deductions or alternative income streams.
Occupancy requirement: You must occupy the home within 60 days of closing and remain for at least 12 months.
Regulatory compliance: Our California private-money lender license means you get clear disclosures, rescission rights and transparent fees.

Source Capital treats hard money as a short-term bridge to permanent, conventional financing. We’ll help you map out an exit strategy from day one, so you always know your next move.

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 It Differs from Traditional Mortgages and Investment-Property Loans

California owner-occupied loans have different occupancy rules, but that’s not the only thing that makes them different from traditional mortgages and investment property loans:

Credit and Income Flexibility
- Conventional mortgages, FHA, and VA loans have strict credit score and income requirements and typically close in 45–60 days
- We recommend a credit score in the mid-600s, but we can work with borrowers with lower credit scores and recent credit events
- We gauge your overall ability to pay rather than using your debt-service coverage ratio (DSCR)
Occupancy Rules
- Investment property hard money loans allow for non-owner use with about a 65% LTV cap
- Owner-occupied loans require you to move in within 60 days and stay for at least 12 months.
Exit Strategy Focus
- Traditional and investment loans may have prepayment penalties or force you to refinance at higher rates
- We don’t charge prepayment penalties, so you can easily refinance when you’re ready

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

APPLY NOW

Key Features: LTV Caps, Occupancy Timeline, Loan Terms

Source Capital’s owner-occupied loans are tailored to meet your timeline and cash needs. Here are some of the terms you can expect:

LTV Caps
- First liens: up to 65% on purchase or rate-and-term refinance
- Second liens or cash-out refinance: up to 50%
Occupancy Timeline
- Move in within 60 days of closing
- Maintain occupancy for at least 12 months
Loan Terms
- Interest-only or fully amortizing options over a 12–24-month term
- Rates between 8.99% and 13.99%, depending on LTV and property type
- Zero prepayment penalties on owner-occupied loans
- Mandatory exit-plan discussion to refinance into a conventional mortgage or sell before term end

Our loan terms are designed to give investors flexibility, whether you’re looking to renovate or shore up your income.

Ideal Use Cases

California owner-occupied hard money loans are an ideal solution for homebuyers who might not be a good fit for conventional loans. Here are some of the common use cases for California owner-occupied loans:

Time-Sensitive Purchases: Owner-occupied loans close in 2–3 weeks, helping you beat auction deadlines and expired contingencies.
Self-Employed & Non-W-2 Borrowers: Homebuyers who struggle securing a conventional loan can still secure our owner-occupied loans.
Recent Credit Events: Owner-occupied loans offer an alternative to conventional loans for borrowers who have recent credit events.
Renovation & Bridge Financing: Fund rehab projects or bridge the gap while you’re waiting for permanent financing.
Cash-Out Refinances: Use equity as collateral to consolidate debt, fund improvements, or cover emergency expenses.

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

Our Streamlined Funding Process for Owner-Occupied Loans

At Source Capital, we strive to make it easy for homebuyers and investors to get approved for loans. Our four-step, 14–21-day journey is fully compliant with CA AB 3108 and Dodd-Frank. It’s our mission to meet regulatory standards and make sure you’re in the know every step of the way.

Step 1: Inquiry & Instant Pre-Approval (1 Business Day)

Applying for a California owner-occupied loan starts with a soft credit pull to confirm loan eligibility. You’ll need to provide two years of tax returns, bank statements, or pay stubs, and proof of intent to occupy.

If you’re pre-approved, we’ll provide a preliminary rate range and LTV, as well as an estimated timeline for underwriting, appraisal, and closing.

Step 2: Underwriting & Rate Lock (3–5 Days)

At this point, you’ll receive a transparent fee schedule—with no hidden “junk” fees at closing—and get an opportunity to choose an interest-only or fully amortizing structure.

Once underwriting criteria and appraisal clear, you can lock in your rate.

Step 3: Closing Coordination (7–10 Days)

Our California-licensed team will coordinate to handle the title and escrow process, using digital signatures to help save time. You’ll receive an Itemized Closing Disclosure detailing each fee, insurance, and prepaid item. You’ll also receive clear instructions on hazard, flood, and title insurance requirements.

Step 4: Funding & Recording (2–3 Weeks Total)

Lastly, we wire the funds to your account immediately after recording. A dedicated loan officer can provide status updates until you have the keys in your hand.

We can also offer an exit plan consultation to help you refinance to a conventional mortgage or prepare for sale before maturity.

Owner-occupied Hard Money Loans: FAQ

What Is an Owner-Occupied Loan?

Owner-occupied loans are secured using your primary residence, allowing you to access funding quickly. They require deep regulatory knowledge because of their strict consumer protections, which sets them apart from the typical commercial loans.

How Much Do Hard Money Lenders Charge in California?

Rates for hard money loans in California start at 8.99%. However, rates vary based on the loan type and borrower qualifications, offering competitive interest in the private lending market.

Do You Need a License to Be a Hard Money Lender in California?

Yes, to operate as a hard money lender in California, you’re required to have a license, ensuring compliance with the state’s strict lending laws and consumer protections.

What Is Owner-Occupied in California?

Owner-occupied refers to a property that serves as your primary residence in California. Loans secured against such properties are subject to rigorous regulatory standards and guidelines.

Can I Qualify for a Consumer-Purpose Loan If I Have a History of Financial Issues?

Yes, even with a financial history that’s less than perfect. Our flexible lending criteria and extensive experience mean we can often find solutions when traditional lenders cannot.

What Are the LTV Limits for Owner-Occupied Loans?

For first-position loans, LTV ratios can go up to 65%, and 50% for second-position loans. This flexibility helps accommodate various borrower needs.

Where in California Does Source Capital Lend?

Source Capital provides lending services throughout the entire state of California, ensuring you can secure funding for your property regardless of its location within the state.

How to Get Approved for a Owner-occupied 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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