How fast can you close?

We can often close a 2nd trust deed loan quickly when the borrower, title company, and required third parties are responsive. In many cases, a closing within approximately one week may be possible if the file is complete and valuation support is available. Appraisals, title issues, senior lender information, and borrower documentation are typically the items that affect timing the most.

What is the largest first trust deed you will be subordinate to?

We do not have a fixed maximum first trust deed amount. However, the size, terms, payment status, and maturity of the first trust deed are important underwriting factors. A larger senior loan generally increases risk, so we review the full capital stack, combined loan-to-value, borrower equity, collateral value, and exit strategy before making a decision.

Will you make a 2nd trust deed loan behind a hard money first trust deed?

Generally, no. We typically only consider 2nd trust deed loans behind institutional first trust deeds. We are more cautious when the senior loan is private money, hard money, in default, near maturity, or otherwise creates additional risk to the junior lien position.

Will you make a 2nd trust deed loan if the first trust deed is late or in default?

Generally, no. A late or defaulted first trust deed creates significant risk for a junior lienholder. We may consider limited exceptions only when the collateral, equity, borrower strength, payoff plan, senior lender status, and overall exit strategy clearly support the risk.

Do you require appraisals?

In most cases, yes. For residential properties, we generally require valuation support and may consider a desktop valuation or other limited valuation review when appropriate, usually together with a site inspection and internal comparable sales analysis. For commercial properties, we review income, expenses, market rents, capitalization rates, comparable sales, property condition, and other relevant valuation factors. A full appraisal may be required depending on the transaction.

Will you go higher than 65% combined loan-to-value (CLTV)?

We will consider requests above 65% CLTV on a case-by-case basis. Higher leverage typically requires strong compensating factors, such as substantial borrower equity, strong credit, meaningful liquidity, high income, a repeat borrower relationship, a purchase below market value, or additional collateral. Leverage above 65% is generally considered more selectively and is most likely to be considered on residential collateral.

Will you consider a 2nd trust deed loan on land?

Generally, no. We typically do not make 2nd trust deed loans secured by land. Land is harder to value, harder to liquidate, and carries additional risk for a junior lienholder.

Do you have minimum credit score requirements?

We do not have a fixed minimum credit score requirement for every 2nd trust deed loan. We focus on the overall borrower and collateral profile, including equity, liquidity, income, credit history, lien position, collateral value, senior debt, and exit strategy. Credit is still reviewed as part of the overall underwriting process.

What are the lowest points you charge?

Our fee structure is typically around 2 points, depending on the transaction. Pricing may vary based on loan size, lien position, leverage, borrower strength, property type, title risk, senior debt, timing, and overall complexity. Lower points may be considered by exception when the deal supports it.

How fast can you close?

We generally quote 2 to 4 weeks for ground-up construction loans. We can move faster when the borrower is organized, responsive, and provides a complete file early in the process. The most time-consuming items are typically the budget and plan review, appraisal, title review, and construction due diligence. Several of these items can usually be reviewed at the same time.

Will you consider a ground-up construction loan on a commercial property?

Yes, in select circumstances. Most of our ground-up construction loans are secured by residential properties, but we will consider commercial construction loans when the collateral, borrower experience, budget, permits, equity, and exit strategy support the risk.

Do you require appraisals?

In most cases, yes. For residential construction loans, we generally require valuation support and may consider a desktop valuation or other limited valuation review when appropriate, usually together with a site inspection and internal comparable sales analysis. For commercial construction loans, we generally require a full appraisal.

Will you go higher than 65% loan-to-value (LTV)?

We will consider requests above 65% LTV on a case-by-case basis. Higher leverage typically requires strong compensating factors, such as borrower experience, strong credit, meaningful liquidity, substantial equity, a repeat borrower relationship, additional collateral, or a clearly supportable exit strategy.

How does the draw process work and how long does it take?

The borrower submits a draw request with the applicable line items, invoices, supporting documentation, and lien releases as required. We then review the request, coordinate an inspection, confirm completed work, and process the approved draw. Draws are typically processed within 2 to 4 business days after receipt of a complete draw package and satisfactory inspection.

Do you have minimum credit score requirements?

We do not have a fixed minimum credit score requirement for every construction loan. We focus on the overall borrower and project profile, including experience, liquidity, collateral, equity, budget, permits, repayment plan, and exit strategy. Credit is still reviewed as part of the overall underwriting process.

What are the lowest points you charge?

Ground-up construction loans are typically priced around 2 points, depending on the transaction. Pricing may vary based on loan size, leverage, borrower strength, project complexity, lien position, timeline, and overall risk. Lower points may be considered by exception when the deal supports it.

Do you charge Dutch interest?

No. We generally charge interest only on the funds that have been disbursed. Undrawn construction holdback funds do not typically accrue interest until they are advanced, subject to the specific loan terms and documents.

Will you consider construction loans outside California?

At this time, we are only lending in California.