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HANOVER MORTGAGE COMPANY  ·  CLOSED TRANSACTION  ·  SAN DIEGO, CA

Hard Money Land Loan — Cash-Out Refinance | San Diego, CA 92105

Cash-Out Refi  ·  1st Trust Deed  ·  $68,000  ·  45.33% LTV  ·  RM-1-1 Zoning  ·  12-Month Balloon

By Hanover MC  |  Closed Transaction

Loan Summary

About This Closing

Hanover Mortgage Company, a California private money lending company, funded a $68,000 hard money 1st Trust Deed cash-out refinance on a residential infill lot in San Diego, California — zip code 92105. The subject property is a residential infill lot zoned RM-1-1 (Residential, Multiple Unit) with an as-is appraised value of $150,000.

The borrower is a professional, full-time real estate investor. The purpose of the loan was working capital — pulling equity out of a residential infill lot to fund other active real estate projects in the pipeline.

Underwriting was completed entirely in-house by Hanover Mortgage Company — no loan committee, no outside approval process. That allowed the transaction to move on a timeline suited to the borrower's needs.

At 45.33% of the as-is appraised value of $150,000, the equity position was conservative and well-supported — over $82,000 in equity remained in the property at closing. The 12-month balloon gave the investor the short-term flexibility needed to execute without locking into a long-term structure.

No prepayment penalty. No upfront fees.

Have a land loan or cash-out refi in California? Call (714) 838-1474 x102  |  hanovermc.com/apply

Transaction Highlights

•          1st trust deed position — senior lien on San Diego RM-1-1 infill lot

•          As-is appraised value: $150,000 — loan amount: $68,000

•          45.33% LTV on as-is appraised value — strong equity cushion

•          RM-1-1 zoning — Residential Multiple Unit, City of San Diego

•          Cash-out refinance — working capital for other real estate investments

•          In-house underwriting — no loan committee, no automated checklists

•          12-month balloon — short-term, flexible structure

•          No prepayment penalty

•          No upfront fees

•          Business purpose only

Why This Deal Worked

A residential infill lot with no utilities to the curb requires a lender who understands the asset and can evaluate it on its own merits. The equity position, the zoning, and the borrower's experience all matter — and that is exactly how this transaction was underwritten.

The RM-1-1 zoning designation — Residential Multiple Unit under the City of San Diego's Land Development Code — adds a layer of development optionality that supports the asset's value. An RM-1-1 parcel in an established urban zip code like 92105 carries entitlement potential for multi-unit residential construction, which informed the as-is appraised value of $150,000.

Hanover Mortgage Company funded this loan on the deal's actual merits: the as-is appraised value, the equity position, the zoning, and the borrower's experience as a full-time professional real estate investor. At 45.33% LTV against a $150,000 appraised value, the collateral position was conservative.

In-house underwriting means no loan committee and no outside approval delays. The decision is made on the deal itself.

Have a land loan in California? (714) 838-1474 x102  |  hanovermc.com/apply

What Is a Hard Money Land Loan?

A hard money land loan is a short-term, asset-based business purpose loan secured by an unimproved or partially improved lot — including urban infill lots with no utilities to the curb. Unlike conventional mortgages, hard money land loans are underwritten primarily on the value of the collateral and the borrower's equity position — not income documentation or credit scores.

Hard money land loans are commonly used by real estate investors who:

•          Own a lot free and clear or with significant equity and want to pull cash out

•          Need short-term working capital while a development or entitlement process is underway

•          Cannot access conventional land financing due to the property type or timeline constraints

•          Hold RM-1-1, R-1, or other residentially zoned parcels and need bridge liquidity

•          Are executing a 1031 exchange or other transaction requiring short-term capital

In this San Diego transaction, the borrower owned a residential infill lot zoned RM-1-1 and used a cash-out refinance to access equity for other real estate investments — a straightforward working capital use case.

View all closed transactions: hanovermc.com/deals/  |  Apply: hanovermc.com/apply/

What Is a Cash-Out Refinance on Land?

A cash-out refinance on land is a transaction in which the borrower refinances an existing land asset — or takes out a new first mortgage on a lot they own free and clear — and receives the loan proceeds in cash. The proceeds can be used for any business purpose.

In this transaction, a 1st Trust Deed was recorded on the San Diego RM-1-1 infill lot — appraised at $150,000 — and $68,000 was disbursed to the borrower at closing. The loan was structured with a 12-month balloon and no prepayment penalty, giving the investor maximum flexibility.

What Is RM-1-1 Zoning in San Diego?

RM-1-1 is a residential multiple unit zoning designation under the City of San Diego's Land Development Code. RM-1-1 zoned parcels permit multi-unit residential development at low to moderate density, depending on lot size, setbacks, and applicable overlay zones.

For real estate investors, an RM-1-1 zoned infill lot in an established urban corridor represents a parcel with development optionality — the potential for multi-unit construction, ADU additions, or longer-term land banking in a market with constrained housing supply.

In the context of hard money lending, RM-1-1 zoning supports the as-is appraised value of the lot by reflecting permitted development potential. Lenders who understand zoning can underwrite the collateral accurately — evaluating the asset on its actual merits rather than a checklist.

San Diego, CA 92105 — Market Context

San Diego is a city in San Diego County, California, and one of the most active real estate markets on the West Coast. The 92105 zip code is located in the eastern corridor of the City of San Diego — an established urban infill area encompassing neighborhoods including Azalea Park, Chollas View, and the eastern portion of City Heights.

San Diego County's sustained housing demand — driven by population growth, geographic constraints on new supply, and strong employment fundamentals — has made infill lots in zip codes like 92105 attractive to professional real estate investors pursuing development, renovation, or land banking strategies. RM-1-1 zoned parcels in this corridor carry multi-unit development potential under the City of San Diego's land use framework, which supports investor interest and long-term land value.

Hanover Mortgage Company is a California private money lending company that has arranged hard money and private money loans throughout San Diego County — including the City of San Diego, Chula Vista, El Cajon, La Mesa, National City, Santee, Escondido, and surrounding areas. Business purpose only.

Frequently Asked Questions

Can I get a hard money loan on an infill lot in San Diego?

Yes. Hanover Mortgage Company funded a $68,000 hard money 1st Trust Deed on a residential infill lot in San Diego, CA 92105 — zoned RM-1-1, appraised at $150,000 — at 45.33% LTV. Hanover MC is a California private money lending company specializing in asset-based, business-purpose hard money loans on land throughout California. Call (714) 838-1474 x102 to discuss your scenario.

Does Hanover MC do in-house underwriting on land loans?

Yes. This San Diego land loan was underwritten entirely in-house by Hanover Mortgage Company — no loan committee, no outside approval process. That is what allowed the transaction to move efficiently.

What LTV does Hanover MC use on land loans?

LTV on land loans varies by property type, location, condition, zoning, entitlement status, and deal structure. This San Diego RM-1-1 transaction closed at 45.33% of the as-is appraised value of $150,000. Loan programs, rates, and terms are subject to change without notice. Call (714) 838-1474 x102 or visit hanovermc.com/apply for current parameters.

What does RM-1-1 zoning mean for a hard money land loan?

RM-1-1 zoning (Residential Multiple Unit) designates a parcel as permitted for multi-unit residential development under the City of San Diego's Land Development Code. This zoning designation supports the as-is appraised value and reflects the parcel's development optionality — both relevant to hard money underwriting. Hanover MC has arranged hard money loans on RM-1-1 and other residentially zoned parcels throughout California.

What can I use the proceeds of a land loan cash-out refinance for?

Loan proceeds must be used for a business purpose. In this transaction, the borrower used the cash-out proceeds for working capital — to fund other active real estate investment projects. Personal use is not permitted. Business purpose only.

Does Hanover MC have a loan committee?

No loan committee. Hanover MC underwrites in-house.

Does Hanover MC charge upfront fees?

No upfront fees. Hanover Mortgage Company does not charge fees until a loan closes. Mortgage broker fees may apply at closing unless otherwise stated.

What appraised value is needed for a hard money land loan?

Appraised value requirements vary by loan amount, LTV, property type, and location. In this San Diego transaction, the as-is appraised value was $150,000 and the loan amount was $68,000 — a 45.33% LTV. Call (714) 838-1474 x102 or visit hanovermc.com/apply to discuss your scenario.

Have a Land Loan or Cash-Out Refi in California?

Hanover Mortgage Company is a California private money lending company specializing in business-purpose hard money loans — including residential infill lots, RM-1-1 and other residentially zoned parcels, mixed-use, residential investment, and commercial collateral. No upfront fees. No loan committee. Business purpose only.

(714) 838-1474 x102  |  hanovermc.com/apply

Related Closed Transactions

•          All Closed Transactions — hanovermc.com/deals/

•          Closed: $780,000 Hard Money Mixed-Use Loan — Berkeley, CA 94702 — hanovermc.com/deal/?id=36

•          Closed: $130,000 Business-Purpose Cash-Out Refi — Orinda, CA — hanovermc.com/deal/?id=37

•          Closed: $213,000 Hard Money Loan — Manufactured Homes, Perris, CA — hanovermc.com/deal/?id=38

•          Closed: $500,000 Hard Money 2nd TD — Auto Showroom, Costa Mesa, CA — hanovermc.com/deal/?id=39

•          Closed: $2,000,000 Hard Money 1st TD — Legal 5-Plex, Huntington Beach, CA — hanovermc.com/deal/?id=40

•          Closed: $325,000 Hard Money 2nd TD — Cash-Out Refi, Tiburon, CA — hanovermc.com/deal/?id=41

•          Hard Money Loan FAQ — hanovermc.com/faqs/

•          Hard Money Bridge Loans — hanovermc.com/bridge-loans/

•          Hard Money Term Loans — hanovermc.com/term-loans/

Business purpose loans only  ·  Subject to underwriting approval  ·  Rates and terms subject to change without notice  ·  California licensed only

Hanover Mortgage Company  ·  2522 Chambers Road, Tustin, CA 92780  ·  hanovermc.com  ·  (714) 838-1474 x102  ·  Mon–Fri 8:00am–5:00pm