A Guide to Private Money Mortgages in California

In California's competitive and fast-moving real estate markets, not every borrower fits inside the strict lending guidelines of banks or traditional lenders. Although the average FICO credit score in the U.S. is 716, about 15.5% of Americans have a score below 600, making it difficult—or even impossible—for them to qualify for a conventional mortgage.

For these borrowers, investors, or real estate professionals needing quick access to capital for themselves and clients, private money loans (also known as hard money loans) can be a short-term flexible, fast and powerful solution!

What Are Private Money Loans?

Private money loans are non-traditional financing solutions offered by private lenders (or brokers like Pacific Direct Mortgage who have many private investors they work with), instead of banks, credit unions and other in-house lenders with traditional portfolio products. Private money loans can loosely be considered in the “non-QM” or “non-qualified mortgage” loan products category. These loans are secured by the property itself, meaning borrowers with low credit scores, complex income streams, or high debt-to-income ratios can still secure the financing they need.

With private money lending, less emphasis is placed on the borrower's financial history and more on the value of the real estate asset itself. This opens the door for self-employed borrowers, real estate investors, brokers, and agents who are underserved by conventional financing routes.

What Can Private Money Be Used For?

California private money loans can be used for nearly any property type, including:

✅ Single-family homes (owner occupied / primary residence)
✅ Multi-family properties
✅ Investment properties (non-owner occupied)
✅ Commercial real estate
✅ Land and lot purchases or refinances

Our team at Pacific Direct Mortgage is ready to guide you through alternative mortgage financing strategies, designed to close your deals fast and efficiently!

Visit us at www.pacificdirectmortgage.com or call 707-708-0797 for a free quote as to how we can help.

Ken & Ari Walker

Husband & Wife Team
Phone: 707‑708‑0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401
Ken: CA DRE Broker #01858042 / NMLS #1221130
Ari: CA DRE #01858152 / NMLS #2170867

Ken & Ari are a husband & wife team with combined 3+ decades in real estate and private money industries. They own Pacific Direct Mortgage & Real Estate, specializing in Private Money loans (also known as Hard Money home loans). Having helped thousands of Borrowers & working directly with Brokers, Agents and Lenders to help when needed with fast, flexible, alternative financing for real estate purchases and refinances throughout California. No issues with DTI ratios, credit issues, property condition, difficult to prove income ‑ we want to help!