Pipeline / HEI-2025-016

HEI-2025-016

In Review Risk Grade B
987 Cedar Ln, Phoenix, AZ 85016
Investment
$164,500
18.2% of value
Option %
40.9%
of appreciation
Base Case IRR
5.8%
1.48× MOIC at yr 7
Term / Maturity
15 yr
Matures Feb 1, 2040

Projected Returns

ScenarioHPAExit ValueFEQ ShareInvestor NetMOICIRR
Downside 0.5%$937,975$177,662$163,4490.99×-0.1%
Base Case BASE3.5%$1,152,422$265,371$244,1421.48×5.8%
Upside 6.0%$1,361,978$351,080$322,9931.96×10.1%
Strong Upside 8.5%$1,603,382$449,814$413,8292.52×14.1%
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
1995
Living Area
2,996 sqft
Lot Size
5,219 sqft
Beds / Baths
5 / 3
Occupancy
Primary Residence
Years in Home
19 yrs
Valuation Method
Full Appraisal (URAR 1004)
Appraised Value
$905,793
AVM Value
$917,513
1st Lien Balance
$451,344
CLTV after HEI
68.0%

Borrower Profile

Anonymized · ID DP-9003
FICO
705
DTI
39.5%
Annual Income
$100,500
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 —
  5. Funded —
  6. Servicing Active —

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

Terms

Investment Amount
$164,500
Starting Home Value
$905,793
Option Percentage
40.9%
Appreciation Cap
20.0% / yr
Initial LTV
18.2%
CLTV
68.0%
Term
15 years
Origination
Feb 1, 2025
Funded
—
Maturity
Feb 1, 2040

Risk & Market

Risk Grade
B
MSA HPA (1y)
9.2%
MSA HPA (5y avg)
8.6%
MSA Unemployment
5.4%
MSA Foreclosure Rate
0.47%

Documents

  • HEI-2025-016-Appraisal-URAR.pdf
    Appraisal · 3.2 MB
  • HEI-2025-016-Title-Commitment.pdf
    Title · 1.1 MB
  • HEI-2025-016-HEI-Agreement.pdf
    Contract · 842 KB
  • HEI-2025-016-Preliminary-CD.pdf
    Closing · 512 KB
  • HEI-2025-016-Property-Photos.zip
    Media · 12.4 MB
  • HEI-2025-016-Investor-Term-Sheet.pdf
    Investor · 284 KB

Deal Team

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