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Independent Lending offers hard money second mortgage loans for California borrowers. Tap into your equity without touching your low interest rate 1st mortgage. Call us to today for more information!

  • Poor Credit Scores - OK!

  • No Proof of Income - OK!

  • Trusted Direct Lender

  • No Junk Fees

  • Fast Funding

Independent Lending

Independent Lending is among a handful of lenders that specialize in a hard money second mortgage for California real estate. Our motto is Trust, Experience and Service.  With more than 40 years of combined experience and an A+ Rating with the BBB, each client is a priority.

Contact us
 today for more information on how to get approved for a hard money 2nd mortgage.


What Sets Us apart


130 Five Star
  • 130 Zillow 5 Star Reviews
  • 5 Star Google Reviews
  • A+ Rating with BBB​


Loans Funded
$ 500 Million
  • 40 Years Mortgage Lending
  • Poor - Excellent Credit
  • Several Programs


Average Days to Fund
15 days
  • No Upfront Fees Ever!
  • Same Day Approval
  • Direct Lender

Types of Second Mortgages

Homeowners often have equity in their homes that they can’t access because of the rigorous bank guidelines. You work hard to invest money into your home, paying down your first mortgage, but life happens, and sometimes you need to access that money again without selling your home.

Traditional lenders offer second mortgages, but they can be hard to get because they are risky for lenders. In addition, these lenders have strict guidelines, making it difficult to qualify, leaving you without the option to use your 
home’s equity.

requirements for hard money loans are much more lenient, allowing homeowners to keep their homes and access their home’s equity to satisfy their financial needs.

Whether you’re looking to start a new company, expand your existing company, renovate your investment property, or purchase a new rental property, 
Independent Lending has the 2nd position hard money loan for your goals.

Before we jump into 2nd position hard money loans, let’s look at all the options you may have to tap into your home’s equity:

Home equity loan
: Home equity loan is a second property lien with a fixed rate. You receive the funds in one lump sum and make principal and interest payments monthly. You typically need a high credit score and a low debt-to-income ratio to qualify.

Home equity line of credit
: HELOC is also a second property lien, but with an adjustable rate. You receive the funds as a credit line (like a credit card) and draw them as needed. You can make interest-only payments on the funds withdrawn and can reuse the funds as you pay them back (much like a credit card). Just like a home equity loan, credit scores need to be high and verified income with a passing, low debt-to-income ratio is required for a approval.

Hard money second mortgage loans
: A 2nd position hard money loan is a second lien on your property, but not from a traditional lender. Instead, the loan is from 2nd position private money lenders willing to focus on the location, condition of the property and collateral. Your personal items such as credit and income are not typically qualifying factors.

Unless you have perfect credit and a low 
debt-to-income ratio, you’ll likely see the most benefits from a second mortgage hard money loan. This is because conventional lenders have rigorous guidelines that make it difficult to borrow money with them in the second lien position.

How do 2nd Position Hard Money Loans Work?

Unlike conventional financing, 2nd position hard money loans don’t have extensive qualifying requirements. As a result, they are a great option for borrowers who either don’t qualify for conventional financing, don’t have the documentation to prove they qualify, or want a faster turnaround with less hassle.

Hard money lenders in 2
nd position don’t ask nearly as many questions as conventional lenders and banks. Their primary concern is the property in question, not the borrower’s qualifying factors.

When you qualify for a California hard money 
business purpose second mortgage, you can typically close within fifteen days of applying and get your money fast, unlike a conventional loan that takes 30 – 45 days to close.

Here’s how to qualify for 2
nd position hard money loans.

Credit Score Requirements

2nd position private money lenders don’t focus on your credit score. Yes, they’ll check your credit, but it won’t be the deciding factor. Even if you have a low credit score, they won’t turn you away without looking at the other factors.

Conventional loans typically require at least a 660 credit score, but it’s not unheard of for hard money lenders to accept 
credit scores as low as 300.

Debt-to-Income Ratios

Hard money lenders in 2nd position often allow for stated income. This means that they are not interested in your actual income.  There are no W2’s, 1040 tax returns or paystubs requested. Employment, self employment and the ability to pay back the loan is required.  There are no DTI (Debt to Income) ratio’s being looked at by underwriting. This is because they aren’t as focused on your individual qualifying factors. So while they do want a borrower able to make the monthly payments, they’ll take more chances with less qualifying documents because they’re focused on the property, not the borrower.

Combined Loan-to-Value

Hard money lenders in 2nd position typically allow Combined Loan-To-Value (CLTV) of 65%. They look at what they could make quickly should they need to foreclose on the property. They need some equity in the home to allow a buffer for a lower sales price should values fall. Like most qualifying factors, they are lenient with the CLTV, allowing borrowers to borrow what’s needed if there is enough collateral in the home.

Need a California Hard Money Second Mortgage?

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Residential hard money second mortgage

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Pros and Cons 2nd of a Hard Money Second Mortgage

Like any mortgage product, you should consider the pros and cons before borrowing a hard money second mortgage. Weigh the good and bad and decide if it fits within your financial goals and what you can afford.

Advantages of 2nd Position Hard Money Loans

There are many benefits of 2nd position hard money loans, starting with the low credit score requirements. In short, bad credit is okay, so don’t assume you can’t tap into your home’s equity if you don’t have perfect credit.

Also, income isn’t a factor. Yes, lenders will ask if your employed to ensure you aren’t committed to paying more than you can afford, but they won’t ask for months of paystubs and years of tax returns to determine if you qualify. Basic information about your employment is usually enough.

Unlike conventional loans, California hard money lenders in 2
nd position allow you to borrow funds on an owner-occupied or investment property. They don’t hold it against you if you’re borrowing against the equity in a home you don’t live in, and they’ll even allow interest-only payments to keep your payments affordable.

Finally, most 2
nd position private money lenders close loans fast. You can typically close within fifteen days of applying versus the month-to-month and a half that traditional lenders take.

Disadvantages of 2nd Position Hard Money Loans

Like any financial product, there are downsides to consider with 2nd position hard money loans.

First, they are short-term loans. You don’t get 30 years to pay them off, which can increase your required payments. Some loans also have a 
prepayment penalty, which means if you pay the loan off too early, you might pay the penalty.

Because of the higher risk hard money lenders in 2
nd position take, they typically require much more equity than a conventional loan. For example, some conventional lenders require only 20% equity in a home, whereas a hard money second mortgage lender might require 30% – 40% equity.

Finally, 2
nd position hard money loans often have higher rates and costs than conventional loans. This is in exchange for the much more flexible underwriting guidelines but should play a role in your decision as you determine what works best.

hard money second mortgage Highlights

(State Specific)

Key Takeaways

The hard money second mortgage is a great way to use your home’s equity without the hassle of numerous qualifying requirements. You don’t have to dig out years of paperwork or prove you have perfect credit.

You can use the hard-earned home equity you’ve created and get your hands on it in as little as fifteen days. If you’re using your home equity for any other purpose than a consumer purpose, a hard money loan is the best option.

If you’re interested in a California hard money second mortgage, it’s important to work with a reputable lender who will review your options and help you choose the right loan. Working with an experienced mortgage professional ensures you get the attention you deserve and have the highest chance of approval.

Independent Lending, every approval is on a case-by-case basis and no situation is too unique.

How We Can Help

Real World Scenario

Independent Lending provided a $173,000 cash out refinance 2nd mortgage business purpose loan in Encinitas, California. The loan was secured by a single family residence with an appraised value of $997,000.  The homeowner was self employed and requested the funds to expand his business and we were able to complete the new business purpose loan within 2.5 weeks. Income and credit were not a deciding factor in the approval process.

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Frequently asked questions about 2nd Mortgage Hard Money loans

Typically 2nd mortgage interest rates are in a range of 10-13%. Rates are subject to change.

There are several factors such at borrower overall strength, property condition and location. The most important factor is the CLTV. 

Yes! Your credit score is a very small piece of the equation with our underwriting.

Need a California Hard Money Second Mortgage?


Contact Independent Lending

Call Toll Free: 1.800.315.0043 / Local: 949.830.3151 or click the Contact Us button to fill out our secure web form for a call back. At Independent Lending, we give every loan request the respect it deserves.

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