Direct Private Lender for Northern California Investment Properties

Security Financial is neither a high-priced hard-money lender nor a slow-moving conventional originator. Thanks to the mix of our own capital and low-cost lines of credit, we’re able to offer some of the lowest private lending rates around. For Borrowers who have an immediate close of escrow or have a hard to finance property, we can close in as fast as 3-5 business days! Our familiarity with Bay Area real estate markets, flexibility, and streamlined process allow us to accommodate short deadlines.

Please Note: We do not consider vacant land, ground-up construction, or owner-occupied homes.

Property Geographic Area Details
San Francisco Bay Area, Greater Sacramento, Lake Tahoe
Loan Amounts
$100,000 to $3,500,000
Interest Rates
5.95% to 7.50%
Loan Terms
6 months to 60 months
Origination Fees
0.75% to 2.00%
Lien Position
1st, 2nd
Collateral Types
  • Residential Property
  • Commercial Property
Loan Purpose
  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Use Equity to Invest in Another Property
  • Invest in a Business
  • Business Working Capital
  • Value Add Project
Property Occupancy
  • Vacant
  • Tenant Occupied 100%
  • Tenant Occupied Partial
  • Owner Occupied Commercial
  • Owner Occupied Residential

Maximum Leverage

Purchase Short-Term (no Value-Add):
Max LTP Residential: 75%
Max LTP Multifamily: 75%
Max LTP Commercial: 70%
Refinance Short-Term (no Cash Out)
Max LTV 1st Lien Residential: 75%
Max CLTV 2nd Lien Residential: 70%
Max LTV 1st Lien Multifamily: 75%
Max CLTV 2nd Lien Multifamily: 70%
Max LTV 1st Lien Commercial: 70%
Max CLTV 2nd Lien Commercial: 65%
Refinance & Cash Out Short-Term
Max LTV 1st Lien Residential: 75%
Max CLTV 2nd Lien Residential: 70%
Max LTV 1st Lien Multifamily: 75%
Max CLTV 2nd Lien Multifamily: 70%
Max LTV 1st Lien Commercial: 70%
Max CLTV 2nd Lien Commercial: 65%
Residential Fix & Flip
Max LTP: 75%
Max LTC: 100%
Max LTARV: 75%
Multifamily Value-Add
Max LTP: 75%
Max LTC: 80%
Commercial Value-Add
Max LTP: 70%
Max LTC: 75%

Property Types

  • 2-4 Units Residential
  • Assisted Living Facility
  • Auto Repair
  • Bed and Breakfast
  • Child Day Care
  • Commercial Condominium
  • Condominium
  • Gym
  • Healthcare
  • Hotel
  • Industrial
  • Mixed-Use
  • Multifamily
  • Office
  • Portfolio of Commercial Properties
  • Portfolio of Residential Properties
  • Retail
  • School
  • Single Family Residence
  • Student Housing

Loan Types

  • Private Money
  • Hard Money
  • Commercial Bridge
  • Residential Bridge
  • Commercial Property Value Add
  • Residential Fix and Flip

Specialty Loan Types

  • 2nd Mortgage Equity Cash Out
  • Bankruptcy Resolution
  • Line of Credit Portfolio of Properties
  • Line of Credit Single Property
  • Partner Buyout
  • Residential Long-Term Rental
  • Reverse 1031 Exchange

Junior Lien Loan Amounts

$50,000 to $1,000,000

Junior Lien Interest Rates

6.95% to 7.95%

Junior Lien Loan-to-Value

65%

Junior Lien Loan-to-Cost

65%

Junior Lien Origination Fees

2% to 3%

We Fund Junior Position Loans

Often

Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out

Max Loan-to-Purchase Price

75%

Borrower Must Have Property Under Contract

no

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

no

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Subject Property
  • Equity in Another Investment Property
  • Family

Experience Required

yes

Minimum Number of Value-Add Projects Completed by Borrower

1

Will Provide Funds for Renovation Costs

yes

Max LTC for Renovation Costs

75%

Interest Charged for Renovation Costs

Only on Funds Drawn

Typical Number of Days for Funds Draw

3

Maximum After Repair Value

75.00%

Processing Fee

$500-$1,500

Documents Fee

$500-$1,500

Extension Fee

Only if extension option is provided

Exit Fee

If Exit Fee is structured

Renovation Construction Draw Fee

$200/draw

Fees which are mandatory for all new borrower clients

  • Underwriting Fee
  • Processing Fee
  • Documents Fee

Fees which are paid to a third party company

  • Appraisal Fee
  • Environmental Report Fee

Details and Requirements

Typical Closing Time (Days)

7

Fastest Closing Time (Days)

3

Payment Structure
  • Interest Only
  • Amortized
  • Interest Reserve
Pre Payment Penalty

yes

Typically 3-6 month Minimum Interest Guarantee
Will lend to a foreign national

no

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered
  • Individual(s)
  • LLC
  • Limited Partnership
  • Trust
  • Corporation
  • Non-Profit Corporation
Documentation Required
  • Credit Report
  • Tax Returns
  • Financial Statements
  • Loan Application
Personal Guaranty (Recourse) Required
Always
Credit Check Required

yes

Minimum Credit Score Required

625

Appraisal Required for Residential Property

Sometimes

Appraisal Required for Commercial Property

Sometimes

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Sometimes

Additional Details

These fees are only paid if reports are required

Get In Touch

Security Financial Services pays us to be listed, so there is no fee to connect. Share your loan request, send a simple email, call, or visit their website.

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Founded in 1943, Security Financial Services is an established finance company headquartered in the San Francisco Bay Area. Our unique lending philosophy has weathered many challenges and has allowed us to originate hundreds of millions in loans.

Our specialty is to fund real estate loans in Northern California of up to $3,500,000. Our team has a deep understanding of the intricacies of the residential and commercial real estate markets. We have established relationships with many experienced real estate brokers but also frequently work with first-timers as well.

License

CFL Lic. 605-1220

Company Size (Number of Employees)

4

Year Established

1943

Associations

  • California Mortgage Association
  • Bay Area Mortgage Association

Office Locations

100 Bush Street, Suite 1500, San Francisco, CA 94104

Primary Capital Source
  • Own Funds
Alternative Capital Sources
  • Bank Credit Line
Loan Structure for Majority of Loans
  • Own Balance Sheet

Our Team

Alexis Rouda

Senior Vice President

Marc Rouda

Executive Vice President

Byron Rouda

President & CEO

Get In Touch

Security Financial Services pays us to be listed, so there is no fee to connect. Share your loan request, send a simple email, call, or visit their website.

Stay Informed About Private Lending

Receive our monthly newsletters with valuable insights and industry updates
subscribe-illustration
Before You Contact Us

Our Minimum Loan Amount Is

$100,000

What We Do

  • Properties in Northern California
  • Residential and Commercial Properties
  • 1st and 2nd Mortgages up to 75% LTV
  • 25%+ Cash Required for Purchase
  • Good Credit and Financials Required

Not Available

  • NO 100% Financing or High Leverage
  • NO Owner-Occupied Homes
  • NO Ground-Up Construction Projects
  • NO Land or Ag Properties
  • NO Rural Areas

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