Santa Barbara Private Money Lenders for Real Estate Investors
Seeking a private money loan secured by real estate in the Santa Barbara metro area? On this page you'll find a list of direct private money lending companies that offer fast funding for a Santa Barbara property purchase, refinance, or equity cash out in 1st lien position. Private money loans are for short term (3-24 months) and primarily qualify based on equity in the subject property, at least 30% for most lenders. So you'll need a 30%+ down payment for a purchase, and for a refinance, the maximum loan-to-value is 70%.
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SDC Capital
Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.

Diversified Mortgage
Our Current Maximum Fixed Interest Rate is 8.5% for 4-year term, 8.25% for 2 years, and 7.95% for 1 year
About Private Money Lending in California
California has lots of “private money” and lots of professional private money lending companies that offer short-term loans secured by real estate. It’s mainly for investment properties, but California has some unique laws that enable private lenders to fund loans secured by a borrower’s primary residence. Here are the typical private money lending guidelines for most lenders in California:
- Loan Amounts: $50,000 to $20,000,000
- Interest Rates: 7.99% to 13%
- Most California private lenders charge 9%-10% interest as of December 2022
- Origination Fee: 1 to 3 points
- Maximum LTV for Senior (1st) Lien: Up to 70%
- Maximum CLTV for Junior Liens: Up to 65%
- Lien Position: 1st, 2nd or 3rd
- 2nd mortgages are common in California
- Loan Term: 1 month to 5 years
- Most private money lenders max out at 24 months
- Most lenders have a 3-month minimum term (interest guarantee)
- Payment Type: Interest-only
- Few private lenders in California amortize all of their loans
Private Money Loan Transactions in Santa Barbara County

4th Mortgage Private Money Loan for SFR in Santa Ynez, California
$77,000
The Brookline Group, a direct private money lender, provided a $77,000 4th trust deed equity cash-out loan secured by an owner-occupied single-family home in Santa Ynez, Santa Barbara County, CA. The Borrower had an immediate need for the cash to pay off a debt related to his business. The 1st mortgage is a $190,000 institutional loan. We have a 2nd mortgage on the property with a balance of $166,000, and the 3rd mortgage is a $75,000 line of credit. We already had a relationship with the Borrower and are very familiar with the subject property. We didn’t need to do a formal appraisal. A conservative valuation was $1,800,000 so the total of all 4 mortgages was less than 30% combined loan-to-value. This loan was funded in just 4 days. The Borrower called on a Monday night and received the funds on Friday. The loan term was set at 12 months and the Borrower plans to pay off with earning from his business. This private mortgage was funded in July 2019.
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