Central Valley Private Money Lenders for Real Estate Investors
Seeking a private money loan secured by real estate in the Central Valley? On this page you'll find a list of direct private money lending companies that offe[]r fast funding for a Central Valley 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%.Searching...
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Diversified Mortgage
Multifamily Bridge Loans only. Interest Rates are 8.5% for 4-year term, 8.25% for 2 years, 7.95% for 1 year.
Karpe Real Estate Center
Private Lending for Central California Real Estate - Bakersfield, Fresno, Central Valley, Sacramento | Est. 1926
California Private Money Interest Rates
According to the private money loan documents software company, Lightning Docs, the average interest rate for California private money loans in the 4th quarter of 2023 was 11.31%. The average loan amount was $626,915. These stats are the average of 884 short-term loans (including bridge, rehab, and ground-up construction) funded for investment properties in California between October 1, 2023 and December 31, 2023 by multiple private lending companies that use Lightning Docs as their preferred software provider to prepare loan documents.
According to private lending data provider, Analytics Logics, the average interest rate for California private money loans in the 4th quarter of 2023 was 10.61%. Lenders charged an average of 1.9% points (origination fee). The average LTV (loan-to-value) for private money loans in California was 63%, and the average loan amount was $753,004. These stats are the average of all the loans which were funded between October 1, 2023 and December 31, 2023 by the many private lenders who use Liquid Logics’ loan origination software to manage their lending operations.
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: 9% to 13%
- 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