Case StudyLake Tahoe Vacation Rental Financing
Loan Amount: $2,000,000
Loan-To-Value: 45% LTV
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.