Terms

Pricing Information for 1-4 Unit Fix and Flip Loans

As a leading specialist in fix-and-flip financing, MMTC offers quick closings (one week in many cases), practical underwriting for investors, and lends on a variety of property types and conditions. As such, MMTC has closed many loans that did not fit the criteria or the time frames of a traditional bank or conventional lender. We offer very competitive rates and fees that allow the investor the potential to make increased profits compared to traditional hard money rates and fees that are significantly higher. Our loans are interest only and have no prepayment penalties. The structure and pricing of each loan is subject to underwriting and approval, but some general pricing ranges are as follows:

Fix and Flip Loan

Percentage Lent: Up to 90% of purchase price plus 90% of repairs (90% LTC). Also, the loan advance ratio is subject to the loan amount also being no more than 75% of the after repair appraised value of the property.
Rate: 10% (Depending on Borrower’s Qualifications), Fixed Rate, Interest Only, Payment Due Monthly.
Origination Fee: 2.0% to 2.25% Origination fee plus standard closing costs outlined below. (An additional fee may apply IF cross-collateralizing for down payment in second lien position with another property).
Loan Term: 6 months with an automatic 6 month extension. The extension fee beginning in month 7 is the loan amount times .0033 per month.
Prepayment Penalty: None.
Credit Qualification: Subject to some exceptions, the credit score requirement is 680 or higher.  Merchants’ underwriting is generally more investor friendly than traditional, conventional loan underwriting.

Estimated Closing Costs

(NOTE: We do NOT charge for underwriting, document preparation or credit report!)

Appraisal: $500 A Single Unit
Processing: $385
Title Company Closing Fees: $250
Recording Fees: $150
Title Policy and Endorsements: $575
First Year Hazard Insurance Premium and Prepaid Interest

Rates and fees are subject to underwriting and approval and are subject to change without notice. Closing costs are estimated.

Also see our Fix and Flip Example, Benefits, and Application links.