Featured LoanCOVID-19 Loan Fallout: Non-QM Rental Property Loan
Loan Amount: $500,000
Loan-To-Value: 60% LTV
Situation & Challenge
FCTD was working with the owner of this renovated Central California coastal property to pay off the hard money bridge loan that was used to acquire the property and into a 5-year interest-only Non-QM loan (loans that fall in between conventional (Fannie Mae & Freddie Mac) and hard money. The owners had made extensive updates to the home, getting it ready for spring and summer vacation seasons. However, by mid-March 2020, the Non-QM loan market came to a halt as all secondary market investors stopped buying Non-QM loans from lenders.
Solution & Result
The loan is on hold until the Non-QM market returns.