Case Study85% LTV Purchase With a Cross in Second Position
Loan Amount: $1,460,000
Loan-To-Value: 85% LTV
Situation & Challenge
The buyers of this renovated home in Los Angeles wanted to complete the acquisition with only 15% down payment. Usually, it’s difficult to obtain 85% LTV private money financing when there is no “value add” to be done to increase the property value.
Solution & Result
Since this was an investment purchase, the borrowers were able to use their primary residence, which had over $1 million in equity, as additional collateral for the 85% LTV purchase money loan.
The lender did a new first mortgage at $1,460,000, placing a cross in second position on their primary residence, allowing the buyers to close on this investment property in Los Angeles.