Hard money helped these Equidy clients overcome funding barriers to build their own beautiful home in Monterey County, California.
In a ground up construction, the clients put together a new three bedroom, three bathroom home in the Salinas area just 20 minutes from the beach and harbor.
The challenge
Our clients were seeking a construction loan to build and own the property themselves.
A conventional loan process would look at credit worthiness as well as income stability or DTI (Debt to Income) in order to determine eligibility on the loan.
This process is often long and arduous when attempting to prove After Completed Value or ARV (After Repair Value).
And the process would’ve likely been even longer due to the fact that the clients wanted to handle the construction themselves.
The result
Equidy was able to approve the hard money loan and begin the process of building disbursements quickly while looking primarily at the ARV of the home to determine our client’s eligibility.
In the end, with our funding support, our clients were able to build a beautiful modern custom home with stunning features including: high ceilings, beautiful quartz countertops, a wood burning fireplace, a stunning main suite and main suite bathroom, a bonus room and bathroom located above the garage, and custom details throughout the home.
A year after making our loan and finishing construction, the clients refinanced into a new conventional loan paying off our loan with their new substantial equity.
About two years later, the clients then sold the home for $965,000, nearly double the original loan amount!
All things considered, the financial upside was about $392,000.
How can we help you?
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Apply now … it only takes a few minutes. You can also book a free, no obligation strategy call with one of our experts to talk about the finance options available for your project.
