California Private Money Loans

Quick Solutions for Private Money Real Estate Financing

What Are California Private Money Loans?

California private money loans are short-term, asset-based financing solutions underwritten by private lenders instead of banks. Approval hinges on the value of your real estate collateral, not your personal credit score or income documentation. With minimal paperwork and streamlined processes, these loans can fund in as few as 7-10 days—versus 30–60 days for conventional mortgages.

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 Asset-Based Underwriting Prioritizes Collateral Over Credit

Asset-based underwriting shifts risk to the property itself. Rather than lengthy credit reviews, lenders rely on local appraisals, collateral inspections, and loan-to-value ratios to determine how much they will lend. Borrowers submit basic property details, and an appraiser establishes fair market value. Automated valuation models and digital collateral tools can speed up this step, often producing preliminary valuations in 24–48 hours.

Although personal credit is not the primary driver, private lenders still perform a light credit check to confirm identity and detect red flags. This approach accommodates borrowers with past credit events, stated incomes, or complex financial backgrounds. If you have significant equity, a clear exit plan, and a property in a well-understood market, private money can be a fast, reliable source of funding.

Advantages Over Traditional Bank Financing

Private money loans offer clear benefits for time-sensitive or unconventional projects:

Faster closing (7-10 days vs. 30–60 days for banks)
Flexible underwriting—limited credit history or stated income
Streamlined docs—no tax returns or pay stubs required
One-step rehab funding—purchase + renovation in one loan
Collateral-driven terms—equity trumps FICO
Customized solutions—tailored to unique asset classes and exit strategies

Common Uses for Real Estate Investors in California

Investors across California rely on private money to seize opportunities and manage capital gaps:

Fix-and-flip financing: Quick acquisition plus rehab budgets under one closing to rehab and resell rapidly.
Bridge loans: Short-term gap financing for buyers winning competitive offers or waiting for permanent loan approval.
Rental and buy-and-hold: Interest-only or amortizing loans with terms up to five years to support cash-flow strategies.
Probate and estate settlements: Immediate funds to cover taxes, legal fees, and distributions before final estate closing.

California Licensing and Regulatory Basics

Private lenders in California are required to comply with state regulations which are designed to protect buyers. Key regulations include:

California Financing Law (CFL) license from DRE broker license exemption from constitutional 10% cap
Mandatory disclosures—Good Faith Estimate, Truth-in-Lending statement, clear rate and fee breakdowns.
Fair lending and anti-discrimination laws
De minimis exception, allowing small-scale private investors to lend limited amounts without licensing

When you’re applying for a loan, always validate the lender’s DRE license number. You can use the DRE website to search DRE license numbers.

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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The Private Money Loan Process: Step-by-step

Source Capital combines local expertise with digital tools for a transparent, tech-enabled journey from application to funding. Our streamlined four-step process minimizes friction and keeps you informed at every stage.

Most borrowers receive pre-approval within 24 hours, and standard deals close in 7-10 days after final approval.

At Source Capital, we make it easy to get approved for a California private money loan in four easy steps:

Initial Consultation: We’ll discuss your funding needs, property details, and exit plan to align your loan with your goals.
Provide Documentation: You only need to provide a few documents to apply, including property appraisals and purchase agreements.
Instant Pre-Approval: You’ll get pre-approved over the phone instantly, so you can start planning ahead now.
Approval and Fast Funding: Upon approval, we fund your loan within a few days to ensure you’re ready for your next opportunity.

Step 1: Submit a Quick Online Application

You can get started by using our mobile portal or desktop site to apply for a loan. Here’s what you’ll need to provide:

Property address and basic details
Desired loan amount and term
Borrower information

Since we only ask for basic information, we can expedite the review process to approve and fund your loan faster.

Step 2: Property Appraisal and Underwriting

Next, local, licensed appraisers will verify the market value of your home. Underwriters will look at the LTV ratio based on that appraisal, the condition of the property, comparable properties, and the potential for rehab projects.

In some cases, we may request an inspection report, environmental review, or contractor bid before approving a loan.

Step 3: Rate Lock and Documentation

Now it’s time to receive and review your rate-lock agreement to lock in your interest rate. Here are the terms you can expect:

Interest-only rates of 8.99–13.99%
Origination fee of 2 points
Review and sign all disclosures electronically, including Good Faith Agreement, Truth-in-Lending Statement, and loan agreement

Our secure e-sign platform is compliant with California regulations to streamline the application process.

Step 4: Funding and Closing in as Little as 10 Days

Once you’ve locked in your rate and agreed to your loan, we coordinate the closing process and wire your funds as quickly as possible. Standard deals are funded in 7-10 days, while more complex deals can take 10–14 days. You’ll receive regular status updates via phone, email, and our online portal.

Our California Loan Programs

Source Capital offers tailored private money solutions for every investment scenario across major California markets—Los Angeles, San Francisco Bay Area, San Diego, Orange County, Inland Empire, and Sacramento. Each program is designed to meet the speed, flexibility, and underwriting needs of real estate investors, developers, and nontraditional borrowers.

Bridge Loans for Rapid Closings

Bridge loans are designed to bridge the gap while you’re selling your home or waiting for permanent financing. Typical bridge loan terms include:

Loan terms of 12–24 months
Interest-only structure
LTV up to 65% on first trust deeds

California bridge loans can help you win bids in competitive markets or stabilize a deal while you secure long-term financing or sell another property.

Fix-and-Flip Loans with One-Step Funding

California fix-and-flip loans offer financing for acquisition and rehab projects. Terms include:

Interest rates between 8.99–13.99%
Structured withdrawals for rehab milestones
Interest-only payments during construction

When you secure a bridge loan, you’re only dealing with one closing fee, a consistent origination cost, and no mid-project refinance.

Rental and Buy-and-Hold Financing

Buy-and-hold loans are ideal for longer term investments, allowing you to finance buy-and-holds or rental properties with flexible terms:

Loan terms up to 2 years
Interest-only or amortizing structures
Up to 65% LTV on residential and commercial

Cash-Out Refinancing and Special-Purpose Loans

California cash-out refinancing loans can help you unlock equity in your home or pay down high-cost debt. If you have equity in an existing property, here are the loan terms you can access:

Cash-out up to 65% combined LTV
Programs include probate, estate settlements, and 1031 exchange bridging
Flexible underwriting for unique properties, such as vineyards and industrial properties

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

CA Private Money Loan Terms from Source Capital

We eliminate the middleman by lending to borrowers directly. That means you’ll get faster funding, competitive interest rates, and favorable terms. We’re committed to working with you to tailor your loan to your unique needs, with terms like:

Timeline: Close your loan in 10 business days or less.

Interest rates: Get interest rates between 8.99% and 11.99% for first position loans, 11.99% to 13.99% for second position.

Loan amounts: Secure funding from $100,000 to $5 million.

Loan duration: Our short-term private money loans are designed to help you secure investment property loans, bridge loans, and other fast financing solutions between 12 and 24 months.

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

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

Why Choose Source Capital for Your Private Money Loan?

Traditional banks have strict lending criteria, long waits, and inflexible terms. Where traditional lenders fall short, we excel. Discover why thousands choose us as their trusted California private money lender.

Rapid Funding

We provide funding in days, not months, allowing investors to seize time-sensitive real estate opportunities that traditional banks might miss.

Customizable Terms

Our loan terms are tailored to your specific needs, so we can accommodate a range of investment needs and personal circumstances.

Easy Qualification

We look at your collateral property’s value, rather than your creditworthiness, financial history, or employment, for loan approval.

Customer Service

Our loan experts are committed to providing personalized support throughout the loan process, ensuring you receive expert guidance.

Licensing & Compliance in California

Source Capital meets all state and federal regulatory requirements to protect buyers and ensure a transparent loan process. You can learn more about our licensing and compliance in California below.

Required Disclosures and Consumer Protections

As a borrower, you’ll receive all mandatory disclosures according to state and federal law—including:

Good Faith Estimate (GFE)
Truth-in-Lending Statement (TIL)
Clear notice of interest rates, fees, and payment terms

In addition to making the required disclosures, we follow fair lending guidelines, identity verification protocols, and anti-money laundering policies.

CA Private Money Loans: FAQ

Can I Borrow Money from a Private Lender If I Have Poor Credit?

Yes, with Source Capital, poor credit is not a barrier. We focus on your collateral property’s value rather than your creditworthiness, making our loans accessible for those with complex financial backgrounds.

How Much Do Private Money Lenders Charge in Interest?

Our interest rates range from 8.99% to 11.99% for first position loans and 11.99% to 13.99% for second position loans. We ensure competitive and transparent rates tailored to your needs.

Do Private Money Loans Require a Down Payment?

Private money loans typically require some equity in the property or a down payment. The exact requirements depend on the specific loan terms and property value.

Do You Offer Refinancing Options for Private Money Loans?

Yes, refinancing out of a private money loan is possible. We offer flexible options to meet your financial goals and evolving investment needs.

Do I Need a License to Be a Private Lender in California?

To lend privately in California, a real estate broker’s license is generally required, ensuring compliance with state regulations and the protection of borrowers.

What Types of Properties Can Secure Private Money Loans?

Eligible properties include residential, multifamily, commercial, industrial, retail, mixed-use, and both owner and non-owner occupied properties in California.

How Is the Loan Amount Determined for My Private Money Loan?

Loan amounts are determined based on the value of your collateral property and our lending criteria, providing up to 65% LTV for first position loans.

How to Get Approved for a Private Money 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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