Woodwick Ct, Ellicott City, MD 21042


The borrower is requesting a hard money loan to purchase a bank owned property in a good area of Ellicott City for $265,000. . The property needs about $27K in work ( update kitchen, bathrooms, exterior work, carpet, paint and landscaping). The loan amount is $290,000 with a full construction hold back that will only reimbursed on finished work. The borrower will be contributing ~$25K at closing + starting the construction with their own money. HMB has already done over 8 successful transactions with this borrower.


Loan Type: Purchase
Loan Amount: $270,000 1st Mortgage
Value of Subject Property: $425,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 620


The pros are:

The lender will have good collateral on an investment property with only about $27K of construction needed.  The borrower will be contributing about $25K into this deal. HMB has done 8 other successful deals with this Borrower.

The cons are:

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