Funded
Not a broker
Rating on Google
Loan Products
Multi-Family, Retail, Office, Industrial, Mixed-Use
- Up to $5,000,000
- Max 75% LTV
- Interest rate 9.25% - 11.00%
- Origination 1% - 2%
SFH, Condo, Apt Complex, Fix-n-Flip, Rentals
- Up to $3,500,000
- Up to 75% LTV
- Interest rate 8.75% - 10.50%
- Origination 1.25% - 2%
Acquisition, Expansion, Senior Living, Laundromats
- Up to $5,000,000
- Up to 70% LTV
- Interest rate 9.50% - 11.00%
- Origination 1% - 2%
Refinancing, Transitioning Homes, Distressed Property
- Up to $4,000,000
- Up to 75% LTV
- Interest rate 9.25% - 11.00%
- Origination 1.25% - 2%
California 2nd Trust Deed Hard Money Lenders
We are hard money lenders located in California, specializing in 2nd trust deeds for business owners, homeowners, and real estate investors.
With over 20 years of experience, we’ve helped countless borrowers secure fast funding for 2nd trust deed loans for various types of properties and investment scenarios.
Whether you need a cash-out refinance loan for a down payment on a multi-family home in Los Angeles or a bridge loan for relocation of a commercial business in San Diego, Crescent Lenders delivers 2nd lien financing for many types of borrowers.
Since banks are often hesitant to grant a 2nd position mortgage against a property, Crescent Lenders uses a much simpler lending criterion, the most important factor being the value of the property and the combined-loan-to-value ratio of the 1st and 2nd loans.
Our deep understanding of the local California real estate market, as well as our streamlined qualification and origination process, allows us to fund your loan quickly, without the unnecessary red tape, unlike a large financial institution.
We deliver when big banks say no.
2nd Trust Deed Evaluation
When analyzing a 2nd mortgage request, the combined loan-to-value (CLTV) is calculated using the 1st position loan amount plus the 2nd position loan, divided by the current value of the property.
Hard money lenders usually want a recent appraisal of the property, a CLTV under 70% and want to hear a sound exit strategy as to how the borrower plans to repay the loan.
These measures ensure the borrower is not overleveraged and is therefore at low risk of defaulting.
It is not in the best interest of the hard money lender nor the borrower if the property falls into foreclosure.
Property type and location are determining factors in the loan approval process.
Homes or apartment complexes in major cities are likelier to obtain funding approval than land or ground-up construction in rural areas.
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%
What are 2nd Mortgage Hard Money Loans?
Second trust deed loans, also known as 2nd lien hard money loans, are a financial instrument, allowing California real estate investors to unlock capital from their property without disrupting their first mortgage, which is often a low-interest, long-term loan they want to keep in place.
2nd trust deed loans are accompanied by higher risk and higher interest rates than 1st trust deed mortgages.
In the event a borrower defaults and the property goes into foreclosure, the first position lien holder (usually a bank) is repaid in full before the second lien holder is repaid their first dollar.
As a result of this increased risk, hard money lenders typically charge between 12% and 14% interest-only loan to take on a second-position mortgage.
At Crescent Lenders, we specialize in providing second-position hard money loans to experienced real estate investors, property owners, and businesses 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.
2nd Lien Position FAQ
What is a 2nd position hard money loan?
A 2nd lien position loan is a type of hard money financing secured by a property with an existing mortgage (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 in full first. A 1st lien lender is first in line to get paid 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, 2nd lien loans are higher risk and often come with higher interest rates.
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)
- Land and rural properties are more challenging to fund
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 Crescent Lenders, 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 - $100,00
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 funding a loan.
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 to $300K, and smaller loans often carry higher rates to justify underwriting costs.