Featured LoanCOVID-19 Bank Fallout to Private Money Bridge Loan
Loan Amount: $550,000
Loan-To-Value: 40% LTV
The buyers of this vacant commercial retail building in the Bay Area was approved with another lender on long-term bank financing. However, due to the pandemic that roiled the secondary mortgage markets, this became another FCTD example of a COVID-19 bank fallout to private money bridge loan that we closed with a Northern California real estate office’s lending division.
The original bank loan was a 75% Loan-To-Value (LTV) loan. FCTD structured the financing on this property as 100% of purchase price by crossing the borrower’s free & clear rental property, allowing the buyer to come in with only closing costs.
Borrower exit strategy is to make renovations to the building, sign a long-term lease, and refinance into a bank loan after the property and mortgage markets stabilize.