Featured LoanCOVID-19 Delays Closing A 30-Year Fixed Rental Property Loan
Loan Amount: $175,000
Loan-To-Value: 70% LTV
Term: 30 Years
Situation & Challenge
The underwriting of this San Joaquin Valley rental property was complete and the loan had been sent to the loan docs department to send out for signing. However, the Non-QM loan market froze during the middle of March 2020 and the loan was suspended. It’s not dead but it’s not moving forward.
Solution & Result
First Capital Trust Deeds switched the loan over to another Non-QM lender that is still able to originate 30-Year Fixed Rate rental property loans and sell the loan to an investor in the secondary market. Fortunately, this is a limited opportunity that we’re trying to rush the six other loans for the same borrower through the window closes, which could be days or weeks.