Huntington Beach, CA

$512,000

Multifamily

2nd Mortgage

06/13/2019
Transaction by
Mortgage Vintage
THE SCENARIO: Borrower was seeking a business purpose 2nd TD on multi-family property in Huntington Beach, Orange County, CA. They were restructuring the 1st TD at a low rate with a commercial bank and paying off an existing 2nd TD where the Note was coming due. The subject property is a well maintained 12-unit multifamily property sitting 2 blocks from the beach. The unit mix featured 1 – 4BR/3BA unit, 6 – 2BR/1BA units and 5 - 1BR/1BA units for a grand total of 45 total rooms, 21 bedrooms and 14 baths. THE LOAN: Appraised Value was $5.2M, 2nd TD Loan Amount of $512,000, the combined LTV was 59.85%. The interest rate was 10.50% Interest Only, 5-year loan term, 6 months Guaranteed Interest, months prepaid interest. MORTGAGE VINTAGE VALUE-ADD: Due to LTV constraints the commercial bank couldn't payoff the full combined balance of the 1st & 2nd mortgages. We quickly stepped in and paid off the remaining balance while adhering to the strict underwriting guidelines of the commercial lender holding the 1st trust deed.