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2nd Lien Hard Money Lenders

Fast. Flexible. Funding.

2nd Position Hard Money Loans

Rates as Low as 11%

70% CLTV

Trusted 5-Star Rating on Google

Anywhere in California

Direct Lender, Not a Broker

$200K to $2M

No Upfront Fees

Self-Employed or Foreign National

Pre-Approval in Hours, Funding Within Days

Recently Funded

California Hard Money 2nd Loans

Experienced

California 2nd Lien Hard Money Lenders

We are California’s premier 2nd lien private money lender. We have served the Golden State for over 2 decades with both 1st and 2nd position loans.

With over 20 years of experience, we’ve helped thousands of real estate investors secure fast, reliable financing on 2nd positions when traditional lenders couldn’t deliver.

Our deep understanding of California’s real estate market allows us to structure loans quickly and efficiently, without unnecessary red tape.

Whether you need a first lien loan to acquire a new property or a second lien for a cash-out refinance, we move fast to get your deal closed.

From Los Angeles to San Diego, and Sacramento to San Francisco, our team has helped investors close with confidence.

Examples

2nd Trust Deed Hard Money Loan

As 2nd position private money lenders, we like to see a combined loan-to-value (the value of the 1st position loan + the 2nd position loan) below 70%, to protect the lender from any downside in an unstable economy.

Low Risk Scenario 

High rate of approval, lots of equity

  • Property Value:
    $1,000,000
  • 1st Position Mortgage Balance:
    $300,000
  • 2nd Trust Deed Request:
    $250,000
  • Combined Loan to Value:
    55%

Moderate Risk Scenario

Typically would be approved, but depends on the property type and region

  • Property Value:
    $900,000
  • 1st Mortgage Balance (Bank Loan): 
    $450,000
  • 2nd Loan Request:
    $150,000
  • Combined Loan to Value:
    66.6%

High Risk

This is very unlikely to qualify, as there is not enough equity in the property.

  • Property Value:
    $800,000
  • 1st Mortgage Balance:
    $550,000
  • 2nd Loan Request:
    $150,000
  • Combined Loan to Value:
    87.5%

About

California 2nd Position Hard Money Loans

Hard money second trust deed loans, also known as second-position hard money loans, are a financial instrument that allows California real estate investors to unlock capital from their property without refinancing their first mortgage, which is often a low-interest, long-term loan they want to keep in place.

The exact property secures these second-position loans as the first mortgage, but the lender is in a subordinate position, meaning they are repaid only after the first lien holder has been paid in full in the event of a sale or foreclosure. Because of this added risk, second lien loans typically come with higher interest rates and shorter terms, but they offer a fast and flexible solution for accessing equity.

At Crescent Lenders, we specialize in providing second-position hard money loans to experienced real estate investors and property owners across California. Whether you're looking to fund renovations, bridge a short-term gap, or tap into equity for your next investment, our second trust deed financing can be the strategic tool you need to pull cash out without disturbing your existing mortgage.

Frequently Asked Questions

2nd Position Loans

What is a 2nd position loan?

A 2nd lien position loan is a type of hard money financing that’s secured by a property that already has an existing mortgage or loan on it (called the first lien). If the borrower defaults or the property is sold, the 2nd lien lender is only repaid after the first lien is satisfied.

How does a 2nd lien differ from a 1st lien?

The main difference is who gets paid first. A 1st lien lender gets paid first in the event of a foreclosure. A 2nd lien lender only gets paid if there’s enough equity left after the 1st lien is covered. Because of this increased risk, 2nd lien loans often come with higher interest rates and a more complex underwriting process.

Why would I use a 2nd lien hard money loan?

Second-position hard money loans are ideal when:

  • You already have a first mortgage, you don’t want to refinance.
  • You need additional capital for renovations, investments, or business purposes.
  • You want to tap into equity without affecting your first loan terms.
What types of properties qualify for 2nd lien hard money loans?

We typically lend on:

  • Investment properties (residential or commercial)
  • Fix-and-flip projects
  • Multi-family units
  • Occasionally, owner-occupied homes (case-by-case)
How much can I borrow in a 2nd lien position?

Loan amounts depend on the property's value and the combined loan-to-value (CLTV) ratio. 

At CrescentLenders, we will fund up to 60–70% CLTV. 

For example, if your property is worth $1 million and you owe $600,000 on a first lien, you might qualify for a 2nd lien loan of $50,000 - $100,000.

Can I get a 2nd lien loan if I already have a bank mortgage?

Yes — many of our clients already have traditional mortgages and use 2nd position loans to access cash quickly without refinancing their first loan.

What are the risks of a 2nd lien loan?

The main risk is that if the property declines in value or is foreclosed, the second lien lender (and potentially you, the borrower) may not recover the full loan amount. That’s why we carefully evaluate the property's equity before lending.

Why are 2nd trust deeds more expensive and higher risk?

If the borrower defaults or goes into foreclosure, the investor in the second position gets paid only after the first lien holder has been paid in full, often resulting in a partial or total loss for the borrower in the second position.

As a result, 2nd trust deed interest rates can be as high as 15% or greater, depending on the risk profile of the deal, i.e, property type, borrowers' credit score, and location of the property.

Depending on the amount of the 2nd, loans are $50K–$300K, and smaller loans often carry higher rates to justify underwriting costs.

Contact Us Today

Fast. Flexible. Funding.


Between $200k and 2 Million Dollars
Direct California Hard Money Lender (Not a Broker, Avoid the Extra Fees)
Funding Private Money Loans Such as Purchase, Refinance, Rehab, Probate, 1031 Exchanges, Cash-out
Pre-Approval in Hours, Funding Within Days