Borrower was 80% complete on a custom home being built on Lake Norman (Charlotte MSA).  The home had been financed with a construction loan that could not be upsized (small bank that has since stopped lending).   After putting the financing in place, borrower decided to modify the scope of work to finish pace that had been unfinished on plan and include a pool and dock.  Being stuck in a loan that couldn’t be upsized, and not having sufficient cash, borrower needed a short term solution that could finance the additional work, was able to be subordinate to the existing loan, and could be taken out when the home is ready to be permanently financed.

Red Fox was able to provide 2nd lien financing, up to 70% LTV, and was able to close the transaction in less than 10 days.  By providing a small second mortgage loan, borrower was able to keep the primary loan in place, which was at a significantly below market rate.

The loan will be refinanced with permanent debt upon completion or, alternatively, will be repaid if the home is sold.