Loan Purpose
Mortgage Vintage funded a $330,000 first trust deed cash-out loan secured by two adjoining vacant residential land parcels in the Sunland neighborhood of Los Angeles County, California. The borrowers, who carried strong FICO scores of 793 and 644, used a portion of the loan proceeds to resolve a partnership interest through escrow, while the remaining funds supported business-purpose investment activities. The property was free and clear at the time of funding, and the loan was structured as a non-owner occupied transaction with an 18-month term. This Sunland land loan was arranged efficiently to meet the borrowers’ timeline, and the planned exit strategy was the eventual sale of the property. For details on hard money programs like this one, visit Mortgage Vintage’s hard money land loan programs page.
Why This Sunland Land Loan Stood Out
- Strong borrower credit profiles with FICO scores of 793 and 644 on a free-and-clear asset
- RE40-1 residential zoning with confirmed street access and active residential construction on surrounding parcels
- Conservative 30.00% LTV and 28.84% Net LTV based on a revised appraisal review value of $1,100,000
- 14.00% investor rate with 6 months guaranteed interest and 3 months prepaid interest
- Desirable Sunland-Tujunga hillside location near Glendale, Burbank, and the 210 Freeway
- Panoramic mountain and valley views with proximity to Angeles National Forest recreational amenities
- Transaction was sourced and managed through the CrowdTrustDeed platform, connecting accredited investors with vetted trust deed opportunities
Property Description
The collateral consisted of two contiguous residential land parcels in the hillside Sunland community of Los Angeles, totaling approximately 43,626 square feet, or roughly one acre. One parcel measured approximately 22,273 square feet and the adjoining parcel measured approximately 21,353 square feet. Both parcels carried RE40-1 residential zoning and had confirmed street access. The site offered panoramic views of the surrounding mountains and valley and was situated in a quiet, established residential neighborhood. The property was conveniently located near the 210 Freeway, with easy access to shopping, dining, schools, parks, hiking trails, and the recreational resources of the Angeles National Forest. At the time of funding, neighboring parcels were actively under construction for residential development, signaling strong area demand for improved residential lots.
Investment Summary
This completed transaction was structured as a first trust deed with a loan amount of $330,000, representing a 30.00% LTV and 28.84% Net LTV against an appraisal review value of $1,100,000. A prior appraisal had concluded a value of $930,000; however, a subsequent appraisal review determined that the original comparable sales were less relevant and located farther from the subject property. The updated review incorporated more proximate comparable parcels and supported the higher ‘as-is’ value of $1,100,000. The loan carried a 14.00% annual interest rate, an 18-month term, 6 months of guaranteed interest, and 3 months of prepaid interest. The minimum investment threshold was $41,250. Mortgage Vintage underwrote this loan with a focus on the low leverage position, the quality of the collateral, and the borrowers’ demonstrated creditworthiness.
Financial Details
| Field | Value |
|---|---|
| Loan Amount | $330,000 |
| Interest Rate | 14.00% per annum |
| Lien Position | 1st Trust Deed |
| Loan Type | Cash-Out |
| LTV | 30.00% |
| Net LTV | 28.84% |
| Appraised Value | $1,100,000 |
| Loan Term | 18 Months |
| Guaranteed Interest | 6 Months |
| Prepaid Interest | 3 Months |
| Minimum Investment | $41,250 |
| Occupancy | Non-Owner Occupied |
| Loan Purpose | Invest into Business |
| Borrower FICO Scores | 793 / 644 |
Property Highlights
| Field | Value |
|---|---|
| Property Type | Residential Zoned Land |
| Location | Sunland (near Glendale and Burbank), Los Angeles County, CA |
| Zoning | RE40-1 Residential |
| Total Lot Size | Approx. 43,626 sq ft (1.00 acre) |
| Parcel Count | 2 Contiguous Parcels |
| Street Access | Confirmed |
| Setting | Hillside with Panoramic Mountain and Valley Views |
| Nearby Development | Surrounding parcels under active residential construction |
| Freeway Access | 210 Freeway |
| Nearby Amenities | Shopping, dining, schools, parks, hiking, Angeles National Forest |
| Existing Encumbrances | Free and Clear at Funding |
Frequently Asked Questions
Why would a hard money lender consider a loan on vacant land at 30% LTV?
Vacant land is generally considered higher risk than improved residential property, so lenders like Mortgage Vintage offset that risk by requiring a significantly lower loan-to-value ratio. At 30.00% LTV, there is substantial equity cushion protecting the investor’s capital. When land also carries confirmed street access, established residential zoning, and sits within an area of active development, the collateral picture becomes meaningfully stronger. Conservative underwriting combined with strong borrower credit profiles allowed this Sunland land loan to meet Mortgage Vintage’s investment criteria.
What does ‘guaranteed interest’ mean in a trust deed investment?
Guaranteed interest means that the investor is entitled to receive interest payments for a minimum number of months regardless of whether the borrower repays the loan early. In this transaction, the loan carried 6 months of guaranteed interest, so even if the borrower paid off the note before the 6-month mark, investors would still receive the full 6 months of interest income at the 14.00% annual rate. This feature provides income certainty for investors and is commonly paired with a prepaid interest period, as was the case here with 3 months of prepaid interest collected at funding.
How does Mortgage Vintage evaluate an appraisal review versus an original appraisal for land loans?
When an existing appraisal appears to rely on comparable sales that are dated or located at a meaningful distance from the subject property, Mortgage Vintage may order an independent appraisal review. In this transaction, the original appraisal concluded a value of $930,000, but a subsequent appraisal review found that more proximate and recent comparable land sales supported a higher ‘as-is’ value of $1,100,000. Mortgage Vintage uses appraisal review as an additional due diligence tool to ensure that the collateral value is as accurate and defensible as possible before committing investor capital.
Mortgage Vintage, Inc. is a California DRE-licensed hard money lender and trust deed investment company with extensive experience structuring asset-backed loans on a wide range of property types, including residential land in complex urban markets like Los Angeles County. Our team applies rigorous underwriting discipline and deep local market knowledge to every transaction, ensuring that both borrowers and investors receive transparent, professionally managed trust deed financing solutions.