The Lender That Couldn't Fund
4 months, 3 term sheet changes, and a lending model that couldn't find investors
Finding a Construction Loan
With permits approved and a contractor ready to build, I needed money. The property already had a $760K mortgage. I needed a construction loan on top of that.
I talked to several lenders:
- Optimal Lending -- Couldn't get comfortable with the project size
- Unitas Capital -- Good terms but didn't close
- MVI (Mortgage Vintage, Inc.) -- The one I went with. The one that failed.
How MVI Works
MVI runs a website called crowdtrustdeed.com. It's a crowdfunding platform. Individual people invest in loans. Here's the process:
- MVI reviews your loan application
- They list it on their website
- Regular people buy pieces of the loan
- When enough people invest, the loan is funded
The problem? If nobody wants to invest in your loan, you don't get the money.
The Terms Got Worse
Over 4 months, MVI changed the deal three times. Each time, they made it worse to try to attract investors:
| Version | Interest Rate | Points |
|---|---|---|
| October 2025 | 12.99% | 1.50% |
| December 2025 | 13.99% | 1.50% |
| February 2026 | 13.99% | 1.25% |
| March 2026 | 13.99% | 1.25% |
The rate went up a full percent. And they still couldn't sell it.
The Real Problem
MVI's loan was a second mortgage behind my existing $760K loan. That created a scary situation:
| Monthly Cost | Amount |
|---|---|
| MVI loan payment | $16,601 |
| Existing mortgage | $5,375 |
| Other mortgage | $2,694 |
| Car payment | $1,210 |
| Total per month | $25,880 |
That's almost $26,000 a month in bills -- all coming out of my pocket. Over 8 months of construction, my savings would drop from $400K to $296K.
Even worse: the total debt would be more than what I could refinance into. I'd be stuck with loans I couldn't pay off.
The Day It Died
On February 24, 2026, the truth came out in a single line from Mike Duong at MVI:
"Please keep in mind, we have not yet funded the loan so there is no Fund Control account set up."
Four months of process, and the money had never actually existed. There was no fund control account because there was no fund. The Housing Commission paperwork -- which was nearly done -- stalled on the spot.
Four months. Three term sheet changes. The rate went up a full percent. And they still couldn't find enough people to invest in a loan backed by a $3.36M property.
The Quick Pivot
The day MVI fell apart, I called my broker Reka. She had a backup: Arixa Capital -- a real lender that uses its own money (not crowdfunding). They had given us a letter of interest back in October 2025.
That letter was about to save the project.