
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Ferris, TX has 50 lenders serving the city. Loan amounts average approximately $296,072. The average rate for private loans in Ferris is 11.9%. The average loan issued in the city is for 21 months. The average origination fee added to the loans is 3.8%. 75% is the median loan-to-value (LTV) for for loans in Ferris.
Sidney closes on a $250,000 rehab project in Ferris, TX, using a hard money loan from Oak Hill Funding Company. The terms of the deal include a 85% loan-to-value (LTV), so he must bring 15% of the price as cash to closing, which makes the principle loan amount $212,500. The loan is interest-only, with monthly payments, and is for 12 months at 10% interest with 4 points paid at closing.
The borrower will have to bring a total of $32,400 upon closing to cover the $37,500 down payment in addition to the $8,500 origination fee. The lender will collect $1,771 in monthly interest payments from the borrower. This is computed by taking the full loan amount of $212,500, multiplying by the 10% rate of interest, and then dividing that number by 12. At the end of the loan, he sells the renovated property for $337,500. After subtracting the $21,250 in interest expenses ($1,771 times 12 months), the $8,500 origination fee, the $212,500 principle on the loan, and the $37,500 he contributed to closing, he will make a gross profit of $57,750 ($337,500 price minus $279,750 in total costs). This amount would be reduced by any renovation costs paid by Sidney.
Brenda takes out a hard money loan from Forest Grove Lending Company in order to renovate a townhome to resell in Ferris, TX. The loan has the following parameters:
a) A $350,000 purchase price, b) a 70% loan-to-value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 2% origination fee.
Based on a $420,000 sales price after the 12 month term, the final numbers for the project would look like the following:
$420,000 sales price
- $245,000 principle (70% LTV)
- $105,000 down payment (30% on 70% LTV)
- $4,900 origination points (2% of the $245,000 principle)
- $22,050 total interest paid (12 months x 9% interest)
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= $43,050 gross profit (doesn't include taxes or renovation costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
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