Featured LoanOwner Occupied Private Money Loan In Ladera Ranch
Loan Amount: $475,000
Loan-To-Value: 49.50% LTV
Situation & Challenge
An illness led to unpaid medical bills that needed to be paid along with other bills that were on the backburner during recovery. Our homeowner client was back to full strength after a year rehabilitating. Their goal was to payoff unpaid medical bills and credit card balances by refinancing into a 30-year fixed rate loan. Because their credit had taken a hit and their income had been reduced during the last 12-months, the homeowner didn’t qualify for a conventional loan. And, because of COVID-19, the homeowner could not obtain a Non-QM mortgage because the Non-QM market froze in mid-March.
Solution & Result
FCTD placed the homeowner into private money loan for 5-years at 7.75% interest-only. The private money loan allowed them to payoff medical bills and credit cards while also having at least five years of payment certainty. Most likely, however, the homeowner will refinance the loan within 12-24 months with either a conventional lender or Non-QM loan, when that market opens up.