Loan Purpose
Mortgage Vintage funded a $265,000 business-purpose cash-out refinance secured by a non-owner-occupied condominium in Irvine, California. The borrower, a 721-FICO investment property owner, sought the loan to bring delinquent property taxes and HOA obligations current while directing remaining proceeds toward business-purpose investment activities. The property was held as a rental investment generating approximately $2,000 per month in current income, with a projected rent of approximately $2,200 per month. This Irvine condo loan was structured as a first trust deed with a 12-month term, 6 months of guaranteed interest, and 3 months of prepaid interest. Investors who participated in this transaction through the CrowdTrustDeed platform gained access to a well-collateralized, income-producing hard money opportunity in one of Southern California’s most stable real estate markets. For borrowers seeking similar financing, Mortgage Vintage offers a dedicated business-purpose cash-out refinance loan program designed for investment property owners.
Why This Irvine Condo Loan Stood Out
- 12.99% first trust deed positioned at a conservative 63.86% LTV based on a September 2026 as-is valuation of $415,000
- Approximately $150,000 in protective as-is equity provided a strong collateral cushion for investors
- 61.30% Net LTV offered additional downside protection after accounting for costs of sale
- No open mortgage or deed of trust was disclosed in the preliminary title report, placing Mortgage Vintage in a clean first lien position
- Existing rental income of approximately $2,000 per month demonstrated the property’s income-producing character
- Clear business purpose for loan proceeds, including clearing delinquent property taxes and HOA obligations and funding business-purpose investment activities
- Defined exit strategy through sale of the subject property within approximately 12 months
- 721 FICO with no reported mortgage delinquencies, collections, charge-offs, bankruptcy, or adverse public records
- Investment condominium located in Irvine, Orange County, a market with consistently strong demand and limited supply
Property Description
The collateral securing this Irvine condo loan was a condominium and townhouse-style attached residential unit located within the Irvine Springs community in the Northwood neighborhood of Irvine, California. Built in 1977, the unit was a junior one-bedroom configuration with approximately 415 square feet of living area per public records. The ground-floor unit featured stream and landscaping views and included one covered carport space. The community offered a pool, spa, clubhouse, tennis facilities, and covered parking, providing tenant-friendly amenities that supported the property’s rental demand. A professional valuation completed in September 2026 concluded a conservative as-is market value of $415,000, supported by comparable sales in the $400,000 to $435,000 range. Title to the property was held in a borrower-affiliated LLC.
Investment Summary
Mortgage Vintage originated this $265,000 first trust deed at an interest rate of 12.99% per annum. Based on the $415,000 as-is valuation, the loan represented a 63.86% LTV and a 61.30% Net LTV, leaving approximately $150,000 in protective equity. The minimum investment in this trust deed was $53,000, with a funding goal of $265,000. The loan carried 6 months of guaranteed interest and 3 months of prepaid interest, providing investors with income certainty from the outset. The borrower’s stated exit strategy was the sale of the subject property, with loan repayment anticipated from sale proceeds within approximately 12 months. This completed transaction reflects Mortgage Vintage’s disciplined underwriting approach, prioritizing collateral quality and borrower credit strength in the competitive Orange County investment property market.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $265,000 |
| Interest Rate | 12.99% |
| Lien Position | 1st Trust Deed |
| Loan Type | Cash-Out Refinance |
| Loan Purpose | Business Purpose |
| LTV | 63.86% |
| Net LTV | 61.30% |
| As-Is Valuation | $415,000 |
| Protective Equity | ~$150,000 |
| Guaranteed Interest | 6 Months |
| Prepaid Interest | 3 Months |
| Minimum Investment | $53,000 |
| Occupancy | Non-Owner Occupied |
| Borrower FICO | 721 |
| Exit Strategy | Sale of Property |
Property Highlights
| Field | Value |
|---|---|
| Property Type | Condominium / Townhouse-Style Attached Unit |
| Location | Irvine, Orange County, California |
| Community | Irvine Springs / The Springs, Northwood |
| Year Built | 1977 |
| Living Area | 415 Square Feet |
| Bedrooms | Junior One-Bedroom |
| Parking | One Covered Carport |
| Floor Level | Ground Floor |
| Views | Stream and Landscaping |
| Community Amenities | Pool, Spa, Clubhouse, Tennis, Covered Parking |
| As-Is Valuation | $415,000 |
| Valuation Range | $400,000 – $435,000 |
| Current Monthly Rent | ~$2,000 |
| Projected Monthly Rent | ~$2,200 |
Frequently Asked Questions
Can a condominium in Irvine qualify as collateral for a hard money cash-out refinance?
Yes. Mortgage Vintage successfully funded a $265,000 first trust deed cash-out refinance secured by an investment condominium in Irvine, California. While condominiums can present additional underwriting considerations compared to single-family residences, factors such as a strong LTV position, a clean title report with no prior open liens, demonstrated rental income, and a creditworthy borrower profile all contributed to a fundable transaction. Hard money lenders like Mortgage Vintage evaluate each condominium deal on its specific collateral merits, location strength, and overall loan structure.
What does ‘guaranteed interest’ mean in a hard money trust deed investment?
Guaranteed interest means that regardless of when the borrower repays the loan, the investor is entitled to receive interest for a minimum specified period. In this transaction, the loan included 6 months of guaranteed interest, meaning trust deed investors were assured of earning interest income for at least 6 months even if the borrower paid off the loan earlier. This feature protects investors from early payoff risk and provides predictable income, which is an important consideration when evaluating short-term hard money trust deed investments.
How does Mortgage Vintage underwrite business-purpose cash-out refinance loans on non-owner-occupied investment properties?
Mortgage Vintage underwrites business-purpose cash-out refinance loans by evaluating a combination of collateral strength, borrower credit profile, property income potential, and the clarity of the stated loan purpose and exit strategy. In a completed transaction like this Irvine condo loan, key underwriting factors included a conservative 63.86% LTV based on a current independent valuation, a 721 FICO score, no prior mortgage liens on title, documented rental income, a clear business purpose for proceeds, and a well-defined exit strategy through property sale. This disciplined approach is designed to protect trust deed investors while delivering competitive returns.
Mortgage Vintage, Inc. is a California DRE-licensed hard money lender and trust deed investment company with extensive experience originating and funding business-purpose loans secured by California real estate, including investment condominiums in competitive markets such as Orange County. With a track record of completed transactions across diverse property types and loan structures, Mortgage Vintage applies rigorous underwriting standards and deep local market knowledge to deliver well-structured trust deed investment opportunities for private investors and borrowers alike.