Case Study

Lake Tahoe Vacation Rental Financing

Loan Details

Loan Amount:  $2,000,000

Loan-To-Value:  45% LTV

Rate:  6.125%

Term:  7/1 ARM

Situation & Challenge

The Bay Area-based owner of a vacation rental in Lake Tahoe had a private money bridge loan maturing with a balloon payment due and wanted to refinance into a lower priced and longer-term loan on the property.

The challenge was to obtain an interest rate around 6.00%, which would allow FCTD to use the rental income from the vacation rental to qualify for financing.

Solution & Result

First Capital worked with a Non-QM lender to use cash flow from the property along with borrower liquidity to qualify for financing. 

The end result was a 7/1 ARM with Interest-Only for 10-years.   The new loan significantly lowered the monthly payment on the property and locked in the lower cost financing for at least seven years.

Do you have a similar financing scenario?
Inquire about your financing options with FCTD.