First Capital Trust Deeds recently closed a $250,000 Riverside owner occupied private money loan on an excellent nice home in Norco, California. Due to a previous short sale two years prior, the buyers took out the private money loan with the intention of keeping the loan until the three year anniversary of their short sale. At that point they’ll be able to refinance into a conventional Fannie Mae or Freddie Mac loan.
This loan made sense for the private money trust deed investor because the borrowers had been self-employed for a decade, had strong income to service the debt, and had a very realistic exit strategy of refinancing out of the loan within a year. Plus, the buyers were putting down $130,000, which provided sufficient protective equity and gave the trust deed investor more confidence that this would be a successful trust deed investment.
Riverside Owner Occupied Private Money Loan Terms:
- $250,000 Loan Amount (66% LTV)
- 8.00% Interest-Only
- 36-Month Term
- No Prepayment Penalty