5 Arch Funding

About 5 Arch Funding

Based in Irvine, CA, 5 Arch Funding is a hard money lender providing loans across the United States. They provide loans for a variety of situations and needs, including loans for investments properties, fix-and-flip loans, and commercial loans. They issue rates starting at 5.25% , loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 70%, and terms between 3 years and 10 years. They require a minimum FICO score of 650 to receive a loan. They primarily provide funding for single family homes and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Licenses: NMLS ID # 1039184, Arizona Mortgage Broker License # 0933148, Oregon Mortgage Lending License Number ML-5475, California BRE Corporation License # 01928500

Lending Guidelines for 5 Arch Funding

Below are the general loan guidelines published on the 5 Arch Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by 5 Arch Funding.

Loan Example 1

Tamara finds a house in Tacoma, WA to remodel and re-sell. Since she does not have enough cash available to acquire the $300,000 house outright, she takes out a private money loan from 5 Arch Funding. As the lender agrees to a 85% loan-to-value, Tamara will have to put 15% down so the amount of the loan will be $255,000. The loan also consists of the following features: 1) a 18 month term, 2) a 9% interest only note, and 3) a two percent origination fee.

Accordingly, the borrower will have to contribute a $45,000 down payment in addition to paying a $5,100 origination fee. Once the loan is closed and Tamara takes on the project, she will need to begin making payments each month of $1,913 to 5 Arch Funding ($255,000 principle x 9% / 12 months). Tamara's intention is to finish the renovation by the end of the 18 months and re-sell it for $405,000. If she succeeds she will earn a gross profit of $65,475 ($405,000 price - $255,000 principle amount - $45,000 cash paid at closing - $5,100 origination points - $34,425 in total interest paid.

Loan Example 2

5 Arch Funding makes a loan to Kent for a rehab project in Salem, OR. The deal dictates the following:

a) A $300,000 purchase price, b) a 85% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 1% origination fee.

After the renovation project is complete, if Kent sells the property for $420,000, the numbers would be as follows:

$420,000 sales price
- $255,000 note principle (85% LTV)
- $45,000 down payment (15% on 85% LTV)
- $2,550 origination fee (1% of the $255,000 principle)
- $12,750 interest payments (6 months x 10% interest)
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= $104,700 gross profit (does not include taxes or rehab costs)