Featured Loan22% LTV Hard Money Bridge Loan In Carlsbad
Loan Amount: $315,000
Loan-To-Value: 22% LTV
Situation & Challenge
By mid-March 2020, the COVID-19 pandemic led to many hard money lenders and Non-QM lenders suspending funding loans. The hard money lenders that originated loans and sold the loan the following week, known as “conduit lenders,” were frozen because their secondary market buyers stopped buying loans until they could get more information about the impact of COVID-19. The owner of this property in Carlsbad wanted to pull $300,000 out of the home to begin renovating the home.
Solution & Result
FCTD secured funding with a high net worth investor in Northern California who liked the low leverage at 22% Loan-To-Value on a 12-month bridge loan.
However long the COVID-19 pandemic lasts, FCTD expects to fund more loans with high net worth investors, along with portfolio lenders and family offices, who will the void left by the conduit lenders who cannot sell newly originated loans.