Pipeline / HEI-2025-001

HEI-2025-001

Funded Risk Grade B+
987 Cedar Ln, Phoenix, AZ 85016
Investment
$94,500
12.7% of value
Option %
28.6%
of appreciation
Base Case IRR
5.8%
1.48× MOIC at yr 7
Term / Maturity
10 yr
Matures Jan 28, 2035

Projected Returns

ScenarioHPAExit ValueFEQ ShareInvestor NetMOICIRR
Downside 0.5%$770,946$102,065$93,9000.99×-0.1%
Base Case BASE3.5%$947,206$152,475$140,2771.48×5.8%
Upside 6.0%$1,119,445$201,736$185,5971.96×10.1%
Strong Upside 8.5%$1,317,862$258,483$237,8042.52×14.1%
Scenarios model exit at year 7 assuming constant HPA. Investor net is gross of fund-level carry and net of servicing and origination fees. Appreciation cap: 20.0% annualized.

Property & Valuation

Property Type
Single Family Residence
Year Built
1981
Living Area
2,604 sqft
Lot Size
9,086 sqft
Beds / Baths
5 / 2
Occupancy
Primary Residence
Years in Home
11 yrs
Valuation Method
Full Appraisal (URAR 1004)
Appraised Value
$744,495
AVM Value
$751,726
1st Lien Balance
$281,533
CLTV after HEI
50.5%

Borrower Profile

Anonymized · ID DP-9003
FICO
711
DTI
34.9%
Annual Income
$152,000
Occupancy
Primary Residence

Deal Timeline

  1. Application Submitted Jan 8, 2025
  2. Underwriting Review Jan 14, 2025
  3. Appraisal & Title Jan 20, 2025
  4. Approved Jan 24, 2025
  5. Funded Jan 28, 2025
  6. Servicing Active Jan 29, 2025

Activity Log

  • Application received via POS
    System
    Jan 8, 2025
  • Initial underwriting pass — cleared
    Sarah Chen (UW)
    Jan 10, 2025
  • Appraisal ordered
    Mike Alvarez (Ops)
    Jan 14, 2025
  • Appraisal received at $—
    ValueCheck LLC
    Jan 20, 2025
  • Title commitment received, no exceptions
    First American
    Jan 22, 2025
  • Approval memo issued to investor pool
    Credit Committee
    Jan 24, 2025
  • Funding wire released
    Treasury
    Jan 28, 2025
  • Deal assigned to Fund II — Tranche A
    System
    Jan 29, 2025

Terms

Investment Amount
$94,500
Starting Home Value
$744,495
Option Percentage
28.6%
Appreciation Cap
20.0% / yr
Initial LTV
12.7%
CLTV
50.5%
Term
10 years
Origination
Jan 28, 2025
Funded
Jan 28, 2025
Maturity
Jan 28, 2035

Risk & Market

Risk Grade
B+
MSA HPA (1y)
9.4%
MSA HPA (5y avg)
8.6%
MSA Unemployment
5.6%
MSA Foreclosure Rate
0.14%

Documents

  • HEI-2025-001-Appraisal-URAR.pdf
    Appraisal · 3.2 MB
  • HEI-2025-001-Title-Commitment.pdf
    Title · 1.1 MB
  • HEI-2025-001-HEI-Agreement.pdf
    Contract · 842 KB
  • HEI-2025-001-Preliminary-CD.pdf
    Closing · 512 KB
  • HEI-2025-001-Property-Photos.zip
    Media · 12.4 MB
  • HEI-2025-001-Investor-Term-Sheet.pdf
    Investor · 284 KB

Deal Team

Deal Lead
Marcus Reed — marcus@foundationeq.com
Credit Officer
Sarah Chen — sarah@foundationeq.com