This was a beautiful house in Merced that the borrower needed a new loan on in order to refinance their existing loan and change the rate and terms offered. They had closed on the home with another hard money loan that was quite a bit more expensive with regards to rate than what we could do for them. We were able to save the borrower money on the rate as well as offer a longer term loan so that they would not need to refinance again in the near future.
This property appraised for $525,000, and we arranged a loan for $220,000, so just under 42% loan to value. Due to the low loan to value we were able to offer a very attractive rate and close quickly (they wanted to close as soon as possible to avoid paying more interest on their outstanding loan than was needed). This was a very straight forward transaction, secured by a good looking property and at a nice loan to value.
These are the types of transactions where we have additional flexibility on our guidelines, conditions and terms. On this transaction we used an older appraisal done for a different hard money lender and were able to close by the end of the month as requested. For more information on how we could potentially help you, visit our residential hard money lending page.