Ridge St, NW, Washington, DC 20001


The borrower is requesting a hard money loan to refinance a 2 unit building in a great area of NW, Washington, DC.  The property was originally purchased for $190,000 as just land in 2008.    After navigating through DC permitting and approval offices as well as getting permission from the local community associations, he started building this 3 story building out of pocket a year ago.  He has since run low on funds and needs construction money to finish the work.  Our 1st mortgage will pay off the existing 1st mortgage and provide $200K for construction that will only be reimbursed on finished work.


Loan Type: Refinance
Loan Amount: $525,000 1st Mortgage
Value of Subject Property: $900,000
Loan to Value: 58%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Refinance property
Credit Score 500 and 700 (co-borr)


The pros are:

The lender will have good collateral on an investment property in a good area of DC worth $900K.  HMB will be doing a construction escrow for the full amount + $30K contingency.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.