Case StudyBlanket Loan Allows Zero Down Payment
Loan Amount: $360,000
Loan-To-Value: 65% LTV
Situation & Challenge
A Los Angeles-based investor wanted to buy a distressed 4-plex for $330,000 in need of serious repair with zero down payment. The 4-plex was in bad shape, which gave hard money lenders pause when considering the 100% financing loan request.
Solution & Result
FCTD used the borrower’s free and clear rental property one mile away as additional collateral for a loan of $360,000, which gave the borrower $20,000 cash back at closing.
The borrower was able to quickly renovate the two vacant units and provided cash incentives to get the two remaining tenants to move out in order to completely renovate the property. Within six months, the borrower refinanced into a conventional loan, releasing the lien from the additional rental property used as collateral for the zero down payment bridge loan.