Borrower sought short-term bridge loan for massive renovations; refinanced with 30-year mortgage later.

A single-family residence in Glenn Dale, Maryland, was condemned and sat vacant for nearly a year after a fire on November 5, 2018. It was finally purchased on October 15, 2019, and the borrower sought a bridge loan from Pimlico to address the extensive repairs and renovation needed. Later, the borrower sought refinancing of the original mortgage, at which point PeerStreet became involved.

Project Scope

The renovation included partial reconstruction of the house itself; full reconstruction of the roof, gutters, and downspouts; new siding and masonry work; renovation of all bathrooms; replacement of all windows and doors; new plumbing, HVAC, and electrical; new flooring and carpet; new drywall on first and second floors; new kitchen countertops and cabinets; repainting throughout.

The total cost of the renovation was $180,000.

Pimlico funded the initial bridge loan independently. The application came in on June 24, 2020, and the deal closed August 7, 2020. The initial loan amount was $196,000 at a 39.2% LTV (based on ARV) and 81.67% LTC at 10% interest to be paid over six months.

The first construction draw was funded on August 12, 2020.

After completing the repairs, the borrower successfully rented the home.

The borrower ultimately decided to start refinance discussions into a 30-year fixed rate loan. The original bridge loan was extended an additional six months until the borrower could refinance under a 30-year loan with PeerStreet and pay off the initial bridge loan. Discussions with PeerStreet began in March 2021. PeerStreet agreed to fund a 30-year loan for the full amount of $562,250. The loan closed August 24, 2021.