La Verne, CA

$300,000

Single Family Residence

Equity Cash Out

05/29/2019
Transaction by
Mortgage Vintage
THE SCENARIO: Real estate investor with a 590 credit score was seeking a cash-out refinance on a non-owner occupied house in La Verne, Los Angeles County. Our new Mortgage Vintage loan paid off an existing 1st mortgage and also provided cash-out to make repairs to the same property as well as pay off other debts. The subject property is a 912 square foot traditional style SFR with 3 bedrooms, 1 bath - very typical for the neighborhood. A unique feature of the property was that it sat on a large 6,850 sqft lot. As well, the property also had an unpermitted room addition. The addition was not factored into the overall value of the property. Tenant pays $2,300 per month. THE LOAN: Broker Price Opinion (BPO) was $470,000, and our loan amount was $300,000. The loan-to-value was 63.83%, and the interest rate was 8.50% with 6 months guaranteed interest and 3 month prepaid Interest. MORTGAGE VINTAGE VALUE-ADD: The un-permitted room addition was an obstacle that we have seen on many occasions. We were able to quickly assess the climate to lend on this unique property and close the loan in 7 business days.