Mantua Dr, Fairfax, VA 22031


The borrower is requesting a hard money loan to purchase and renovate a property he just bid on at auction.  The purchase price is $615,000 and the property needs about $50k in rehab work (which actually has been started.  He has a full crew currently in the house).   We lowered the loan amount slightly and wont be doing a construction hold-back since a lot of the work has been started and he is paying his in house crew directly.  The borrower has decent credit, cash and experience. He will be bringing $130K to closing.


Loan Type: Purchase
Loan Amount: $525,000 1st Mortgage
Value of Subject Property: $825,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 666


The pros are:

The lender will have good collateral on an investment property in a good area.  The Borrower is strong with credit, cash assets and experience.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.