First Capital Trust Deeds secured a private money construction completion loan In Redwood City for an investor who was halfway through the renovation of a project and needed additional funds to finish. The home, which had been owned as a rental for several years, was going through a major remodel to maximize the resale value in the hot market on The Peninsula.
Luckily, the home was in a highly desirable location and had significant protective equity for the Los Angeles-based trust deed investor to feel comfortable doing the loan even though the interior of the house was under construction. Plus the borrower had the financial strength to qualify for a lender’s ALTA Extended 125% Title Insurance Policy, which is usually a bit more difficult to qualify for on construction completion financing. Title insurance companies scrutinize the risk of construction completion loans because the risk for future Mechanic’s Liens that may pose issues for the lender and title insurer, as I’ve written about here in the blog section of the website.
In the end, everything came together quickly for the borrower, title insurance company, and the lender to close in less than 10 calendar days.
Construction Completion Financing Terms:
- $750,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty