White House With Brick

This brand new manufactured SFR, listed for sale at the time of application, was one of two properties collateralized against a ballooning note with less than a month before maturity. The borrower needed to free up one of the properties to sell, but also wanted to maintain the debt at the original principle balance for income tax purposes. The primary objection traditional lenders had was the borrowers Schedule E reflecting a loss from rental real estate. We took an alternative approach, and focused our underwriting on the subject property, factoring market rents and marketability as well as the borrowers compensating factors – additional sources of income. We structured a new first mortgage of $218,000 against the new manufactured unit preserving the borrowers tax basis.