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Deal Details
Private Loan Type
Refinance
Approx. Funding Date
05/03/2024
Property Type
Property City
Bridgeport
Property State
CT
Loan Term (months)
360
Lien Type
1st Mortgage
Payment Type
Amortized
Property Value
$500,000
Previous Loan Balance
$395,000
Loan-to-Value
80%
Term
30 years
Rate Type
Fixed
Debt Service Coverage Ratio
1.27
Location Type
Urban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
3
Building Square Footage
3,127
Borrower's Plan
Continue Rental
Borrower Credit Rating
Excellent
Interest Rate
8.4%
Origination Points
1%
Deal Summary
RCN Capital, a national direct private lender, funded a $400,000 1st lien position refinance loan secured by a 3-family residential property in Bridgeport, CT. The property value was appraised at $500,000 so our loan-to-value was 80%. We paid off a previous loan balance of $395,000. The subject property was acquired for $360,000 in September 2023 and underwent $20,000 in renovations to bring it to its current condition. It is now in good condition and all 3 units are leased, generating a monthly income of $5,200 which exceeds the market rent of $4,750 per month. This resulted in a 1.27 debt service coverage ratio. The building size is approximately 3,127 square feet. The Borrower had excellent credit. The loan term is 30 years with amortized payments and a 5-year prepayment penalty. The interest rate was fixed at 8.4% and we charged 1% origination points. This DSCR rental refinance loan was funded in May 2024.
Funded By
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Dealmakers
Stanley Zancho
Senior Loan Officer
Stanley Zancho, Senior Loan Officer, uses his unmatched work ethic, customer service, and attention to detail to build long-lasting relationships with brokers and Investors, while ensuring they meet or exceed their real estate goals with RCN Capital. Stan joined RCN Capital in 2018. Prior to RCN Capital, he worked in the automotive industry for over 5 years as a Finance Manager and Sales Manager.