California Real Estate Hard Money 2nd Mortgage Lenders
California Hard Money Direct is one of a handful of hard money lenders in California willing to provide 2nds for both consumer and business purpose. Our underwriting is done in-house, so we are able to provide quick approval and fast funding. Our rates and fees are very competitive, and we have more five-star reviews than virtually any other hard money lender in California. Contact California Hard Money Direct now to request more information regarding a private 2nd mortgage.
We provide hard money 2nd trust deeds exclusively in California. Our combined loan-to-value ranges from 60-65%. Our loan amounts range from $50,000 up to $2 million. Hard money 2nds are offered for investment property business purpose commercial loans and owner-occupied properties.
Hard Money Loan Request
If you prefer to email us, fill out the form below and an associate will contact you to review the loan scenario and provide a quote.
2nd Trust Deed Lenders -
California Hard Money 2nd Mortgages
If you have an existing low-interest rate bank loan in 1st position, it is in your best interest to keep that loan in place. It is to your benefit to simply get additional money in 2nd position. The last thing we want to see happen is for you to give up a low-interest rate loan and replace it with something higher. This is also beneficial because if you only need the money short-term you can pay off the 2nd. Doing so means you only paid interest on the 2nd for the time you had. You have not impacted your 1st mortgage at all.
A quick phone call to California Hard Money Direct will allow us to evaluate based on your current 1st mortgage and current property value how much money in the form of a 2nd mortgage we would be able to provide you with.
Definition of a 2nd Trust Deed in California
A second trust deed means there is already another trust deed in place currently using the property as collateral. In most cases, this first trust deed will be the original mortgage for the property. The first trust deed is typically the original mortgage taken out on the property. Most often this would be a bank or traditional lender. A second trust deed is a loan or mortgage recorded against real estate in 2nd position. You will also hear 2nds referred to as junior liens.
2nd Trust Deed Loan Rates Will Be Higher
If the borrower does not make payments on the 1st loan, the lender of the 1st may foreclose on the borrower at which point the lender of the 2nd will have their loan wiped out. The extra risk for the lender in 2nd position is the reason for the higher interest rate; the investors making loans in second position are taking on greater risk, leading to higher interest rates.
But, it does not always have to be a risky proposition for an investor.
Let us say the first mortgage is only $100,000 but the property is worth $1 million. If an investor made a loan for $200,000, then in most circles, it would not be considered very risky. On the other hand, let’s suppose somebody had a one-million-dollar loan in first position on a property worth $2 million. If an investor provided a second mortgage in the amount of $100,000, this would be considered very risky. The reasoning behind this is, if the borrower fails to make payments on the 1st loan, the lender of the 1st may foreclose on the borrower, at which point the lender of the 2nd will have their loan wiped out. In this instance, the investor holding the second mortgage would need to bring the first mortgage current to avoid having their loan wiped out.
Hard Money 2nd Mortgages in California
At California Hard Money Direct, we can help you purchase a second property almost anywhere in California, with fast pre-approvals and impressively low rates.
2nd Mortgages on Investment Properties in California Used to Consolidate Debt
Borrowers doing flip properties, or many other scenarios, run up high credit card balances to complete various projects. Interest rates on credit cards can be exorbitant. Borrowers can use the equity in their property to consolidate their business debt. The hard money 2nd will be at a significantly lower interest rate. This in turn will raise the FICO score of the borrower in most cases. As long as the real estate being used as collateral has plenty of equity in relation to the requested loan amount, we can help. Unlike banks, we don’t care if the borrower has had a short sale, bankruptcy, foreclosure or currently has bad credit.
Funding Both Investment Properties & Primary Residential
The type of real estate used as collateral for the 2nd mortgage does not determine whether the loan is considered business purpose or consumer purpose. A 2nd mortgage against a commercial property to pay off personal credit cards would be a consumer purpose loan. A 2nd mortgage against a primary residence to purchase equipment for a business would be a business purpose loan.Structuring the loan properly is important. There is not a one-size-fits-all answer to whether the property the borrower is using as collateral will qualify for a 2nd mortgage.
But, not only does the property matter, the use of funds matters even more in many instances. A commercial property, fourplex, or rental property are considered investment properties. But if the borrower takes out a 2nd mortgage to go on a luxury cruise, it would be considered a consumer loan. This loan would be denied. On the other hand, if the borrower required the funds for business debt consolidation, inventory for their business, or repairs to any of their investment properties, these would all be considered business purpose. A 2nd mortgage against a primary residence to purchase equipment for a business would be a business purpose loan.
Private 2nd Mortgages
The key distinction between a private 2nd mortgage and a regular 2nd mortgage lies in the nature of the lender. A private 2nd mortgage involves securing a loan from a private individual or a non-institutional entity, rather than a traditional financial institution such as a bank or credit union. These mortgages are often utilized to access liquidity for various purposes, such as home improvements, debt consolidation, or seizing investment opportunities. The private aspect implies that the loan is not funded or regulated by a conventional bank or mortgage company.
Private 2nd Mortgages are known for their flexibility and quicker approval processes compared to traditional mortgages. They are particularly attractive to borrowers who may not meet the stringent criteria of mainstream lenders or require a faster turnaround. The private lending sector is more agile and can consider a broader range of factors, including the value of the property and the borrower’s equity, in the decision-making process. This makes Private 2nd Mortgages a viable alternative for those seeking personalized and efficient financing solutions in California’s real estate landscape. Whether you’re a seasoned investor or a homeowner seeking financial flexibility, our commitment to transparent, efficient private lending makes us the preferred choice for private second mortgages in California.
We Offer Both Consumer Purpose Loans & Business Purpose Loans
After Dodd Frank regulations passed, most hard money lenders stopped funding consumer 2nd mortgages. For that matter, most hard money lenders stopped funding hard money consumer 1st mortgages. California Hard Money Direct is one of a handful of lenders still offering both consumer purpose hard money loans in second position and business purpose 2nd position commercial loans.
We will ask specific questions about use of funds to determine whether the loan falls in the category of consumer or business purpose. For example, if the bulk of the borrowed money will be used for personal items such as debt consolidation, purchasing a new car, paying off a student loan, remodeling primary residence etc., a loan will be considered consumer purpose. On the contrary, if most of the borrowed funds will be used for purchasing investment real estate, expanding an already existing business, starting up a new business, remodeling one or more of your rental properties etc., the loan would be considered business purpose.
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TIME TO FUND LOAN |
As few as 7-9 days if needed |
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LOAN SIZE |
$50,000 – $20 million+ |
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LOAN TERM |
Up to 12-48-month terms available |
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LIEN POSITION |
2nd |
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LOAN TO VALUE (LTV) |
Up to 65% of combined total loan to value |
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LOAN APPLICATION APPROVAL TIMELINE |
Same day pre-approval available |
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PROPERTY TYPES |
Single family, multi-family, commercial, industrial & mixed-use |
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PURCHASE LOAN INTEREST RATES & POINTS |
Rates and fees fluctuate with the market. 12% is the current average range for 2nds. Call or email for information on current rates and points |
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Why More Borrowers Choose California Hard Money Direct for 2nd Mortgages?
Work with a lender that has the knowledge, resources, and experience to get your deals closed quickly. Cut out the middleman and partner with a direct hard money lender.
Same day pre-approvals. Most loans can be funded within 7-9 days. Our interest rates and fees for hard money loans are among the lowest in the industry. Call now and compare for yourself.
We don’t need to toot our own horn when it comes to the discussion regarding satisfied customers. You can look us up on Google and you will find more five-star reviews than just about any other lender out there. Read the reviews and you will quickly learn why California Hard Money Direct has so many clients repeatedly using our services for all their hard money needs.
Recently Funded Hard Money 2nd Mortgages in California
Read what other borrowers have to say about working with our California hard money 2nd mortgage lenders
Francis Ezewiro
I sincerely enjoy the high level of commitment and passion Judy brings to the table during the loan process. From the first day we spoke on the phone through the day the loan was financed, Judy was with me. She responded to any questions I had thoroughly and promptly. If need arises, I would use Judy again. Also, I would highly recommend Judy to anyone that seriously needs funding for investments and flips.
Paul Moresi
Judy is the type of person who follows through and moves FAST. She was also very sweet and a pleasure to work with. I would recommend California Hard Money Direct for anyone in need a quick loan to finish a project. They were a great resource for me.
Lisa Sanchez
Thank you Judy for all of your help. Judy is an amazing broker, she is very helpful throughout the process. She is quick and is very Organized. Judy knows her stuff…. and will not drag you along the process… Its either she can do it or not. … I will continue to come back, Thank you Judy.
