Owner-Occupied Business-Purpose Cash-Out Refi Closed in Orinda

By G. David Lapin On April 29 2025

HanoverMC Arranges $130,000 Owner-Occupied Business-Purpose Cash-Out Refinance in Orinda, California

HanoverMC has successfully arranged a $130,000 second trust deed on an owner-occupied single-family residence in Orinda, California 94563. Structured as a business-purpose cash-out refinance, the transaction involved fractional trust deed investors and achieved a combined loan-to-value (CLTV) of just 35%. This low-leverage structure offered strong collateral protection while supporting a local business owner's capital needs.
Key Deal Highlights:

Loan Amount: $130,000

Lien Position: Second Trust Deed

Property Type: Owner-Occupied Single-Family Residence

Purpose: Business-Purpose Cash-Out Refinance

Funding Source: Fractional Trust Deed Investors

CLTV: 35%

Location: Orinda, CA 94563

Prepayment Penalty: None

Transaction Overview

The borrower, a small business owner, sought to access home equity for business growth without refinancing their low-rate first mortgage. HanoverMC arranged a solution that met all California business-purpose lending guidelines while ensuring investor compliance and protection.

This structure is particularly noteworthy given the owner-occupied status of the property—a scenario that often presents compliance challenges in the private lending space.
The borrower benefits from fast capital access, flexibility with no prepayment penalty, and the ability to maintain their favorable first mortgage terms.

Subject was located in Contra Costa County, Orinda is one of the most sought-after residential communities in the San Francisco Bay Area. Known for its scenic beauty, proximity to major transit routes, and award-winning schools, Orinda offers a strong environment for asset-backed transactions.
Key Real Estate Facts – Orinda, CA 94563:

Median Home Value: Approximately $1.9 million

Average Days on Market: 27

Homeownership Rate: Around 88%

Median Household Income: Over $200,000

For more information on our Hard Money Loans or Trust Deed Investments, call our office at 714.838.1474 ext. 102 or visit our:www.hanovermc.com

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DISCLAIMER
Hanover Mortgage Company is California licensed only. Real Estate Broker – California Department of Real Estate. Broker License #01410448 │ NMLS I.D. Number: 337458. INTEREST RATES CAN CHANGE WITHOUT NOTICE. ASK US FOR CURRENT RATE INFORMATION. BORROWERS AND PROPERTIES MUST QUALIFY. CONDITIONS AND RESTRICTIONS MAY APPLY. Loan programs, amounts, rates and terms are subject to change without notice. Loan approval is not guaranteed and all loan applications are subject to verification of acceptable credit, income, employment, lien position and value of collateral in the sole discretion of Hanover Mortgage Company. Flood and/or property hazard insurance may be required. Additional fees, conditions, restrictions and limitations may apply. Not all programs are available in all areas. The interest rate for adjustable rate mortgage loans is subject to increase. Please contact Hanover Mortgage Company to determine your eligibility for a specific loan product. Hanover Mortgage Company does not offer financing for those transactions defined as ‘Covered Loans’ or ‘High Cost Loans’ in any state or federal law. Hanover Mortgage Company is a Mortgage Broker. Mortgage Broker fees will apply unless stated otherwise. Disclosure: Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. State law dictates that we acknowledge that interest on trust deeds is not guaranteed. No investment is completely risk free and past performance is not a guarantee of future results. Before investing, investors must be provided applicable disclosure documents. Investment Products: Are Not FDIC Insured • Are Not Bank Guaranteed • May Lose Value • Are Not a Deposit • Are Not Insured by Any Federal Government Agency. Investments arranged through Hanover Mortgage Company are not insured or guaranteed. All investments carry inherent risks, including the potential loss of principal. Past performance is not indicative of future results.

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