Vandiver Ct, Havre De Grace, MD 21078


The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $60,000 and the property only needs about $15k in  upgrades.  The borrower purchased this property through an auction sale at a discount and is holding as a rental property.  It 2 units which rent for $850 each.  HMB is holding all construction money until upgrades are completed.  HMB has done 2 successful projects already with this borrower.


Loan Type: Purchase
Loan Amount: $75,000 1st Mortgage
Value of Subject Property: $125,000
Loan to Value: 60%
Term requested: 12 Month Balloon
Credit Score 664
Exit Strategy: Refinance property


The pros are:

The lender will have good collateral on an investment property at a low LTV.  The Borrower is strong with experience and assets.  He has refinanced loans into bank loans in the past that are held as rentals.

The cons are:

The Borrowers exit strategy of refinancing could take longer than expected and will most likely need 6-9 months of seasoning.