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$2M Legal 5-Plex Cash-Out Refi | Huntington Beach, CA
By Hanover MC On July 29 2025
Closed: $2,000,000 1st TD cash-out refi, legal 5-plex, Huntington Beach CA. 52% LTV.
Closed Deal
By Hanover MC | July 29, 2025 | 2 min read | Orange County, California
Legal 5-Plex · Cash-Out Refinance · Business Purpose · 52% LTV · Orange County
Loan Summary
| Loan Amount | $2,000,000 |
| Loan Position | 1st Trust Deed |
| Loan Purpose | Cash-Out Refinance — Business Purpose |
| Property Type | Legal 5-Plex Multifamily |
| Location | Huntington Beach, CA 92648 — Orange County |
| LTV | 52% of As-Is Appraised Value |
About This Closing
Hanover MC arranged a $2,000,000 hard money 1st trust deed on a legal 5-unit multifamily property in Huntington Beach, CA 92648. The loan was arranged as a business purpose cash-out refinance at 52% LTV on the as-is appraised value to an irrevocable trust.
The subject property is a legal 5-plex located in the 92648 zip code — minutes from Downtown Huntington Beach and Pacific Coast Highway. Five legal residential units, off-street parking, individual meters, well-maintained throughout. A stabilized income-producing asset in one of Orange County's most consistently in-demand coastal rental markets.
Once a property reaches 5 units it crosses into commercial real estate territory — outside Fannie Mae and Freddie Mac guidelines. The borrower needed to access equity and was unable to obtain conventional financing. Hanover MC evaluated the collateral, confirmed the LTV, and arranged the loan.
Why This Deal Worked
At 52% LTV on a stabilized coastal Orange County multifamily asset, the collateral position was strong. The property carried consistent rental income across all five units. No loan committee.
Hanover MC arranges hard money loans on 5+ unit multifamily properties throughout Orange County and California — evaluating each deal on the asset, the equity, and the borrower's exit. Business purpose only.
Figures describe this specific, previously closed transaction only — not a quote or commitment to lend. Every borrower and property is underwritten on its own terms.
Frequently Asked Questions
Can you get a hard money loan on a 5-plex in Huntington Beach?
Yes. Hanover MC arranged a $2,000,000 hard money 1st trust deed on a legal 5-plex in Huntington Beach, CA 92648 at 52% LTV.
What is a legal 5-plex and why does it matter for financing?
A legal 5-plex is a multifamily property with five fully permitted residential units. At 5 units it becomes commercial real estate — outside standard residential lending guidelines. It requires commercial or private money financing, which is precisely where Hanover MC operates.
What LTV does Hanover MC use for multifamily hard money loans in Orange County?
LTV varies by deal, property type, and collateral position. This Huntington Beach 5-plex closed at 52% LTV on the as-is appraised value. Call (714) 838-1474 x102 to discuss your specific scenario. Borrowers and properties must qualify.
Does Hanover MC arrange hard money loans on multifamily properties in coastal Orange County?
Yes. Hanover MC arranges hard money 1st and 2nd trust deed loans on multifamily investment properties throughout Orange County including Huntington Beach, Costa Mesa, Santa Ana, Anaheim, and surrounding coastal markets. Business purpose loans only.
Why would an investor use hard money for a cash-out refinance on a 5-plex?
Conventional lenders typically apply stricter guidelines to 5+ unit properties, and their underwriting may not always align with an investor's timeline or specific credit situation. This deal also involved additional complexity, as the property was held in an irrevocable trust — a structure conventional lenders often have limited flexibility to work with. Hard money provides asset-based underwriting that can accommodate these kinds of scenarios.
How fast can Hanover MC close a hard money multifamily loan?
Hard money multifamily loans arranged by Hanover Mortgage Company close on a timeline that depends on title, appraisal, and underwriting approval. Timeline is not guaranteed. Call (714) 838-1474 x102.
Have a Multifamily Deal in Orange County?
No upfront fees. No obligation. Business purpose loans only. California licensed.
(714) 838-1474 x102 | Apply Online
Business purpose loans only · Subject to underwriting approval · California licensed