Deal Details
Private Loan Type
Refinance
Approx. Funding Date
07/05/2023
Property Type
Property City
Scottsdale
Property State
AZ
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$867,000
Previous Loan Balance
$619,310
Loan-to-Value
74.75%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.51
Location Type
Suburban
Property Condition
Newly Renovated
Occupancy at Closing
Partially Occupied
Number of Units
1
Building Square Footage
2,320
Borrower's Plan
Short-Term Rental
Exit Strategy
Pay Down
Borrower Credit Rating
Good
Interest Rate
9.12%
Deal Summary
Easy Street Capital, a direct private real estate lender, funded a $648,000 1st lien position long-term refinance loan secured by a single-family home in Scottsdale, Arizona. The property was appraised at $867,000 making the loan-to-value ratio 74.75%. We paid off a previous loan balance of $619,310. The loan was structured with a fixed interest rate of 9.125% and required interest-only payments for the first 10 years of the term, amortized on a 20-year schedule thereafter. There is prepayment protection of a 1% penalty for the first 12 months, with the remaining 348 months open for prepayment without penalty prior to maturity. The home is rented as a short-term rental (vacation home). The debt service coverage ratio was 1.51. The Borrower had good credit. The subject property is a 2,320-square-foot single-family home featuring four bedrooms and three and a half bathrooms. The home was originally purchased for below market value as it was in need of modernization. Since then, the Borrower has completely renovated the home. Updates included a new kitchen, new bathrooms, new flooring and fixtures, new windows, new interior and exterior paint, the addition of a brick paved walkway in the yard, and refinishing the pool with new pebble-tec. The Borrower plans to continue operating as a short-term rental and will pay off the loan over the 30-year term. This DSCR rental refinance loan was funded in July 2023.