Applewood Funding

About Applewood Funding

Applewood Funding is an asset-based lender in Scottsdale, AZ providing funding in Phoenix. They provide cash out hard money loans, loans for investments properties, and fix-and-flip loans. They offer loan amounts ranging from $10,000 to $500,000 and terms between 3 months and 5 years. Their loan guidelines do not include a minimum FICO rating. They primarily offer loans for single family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family

Areas Served: Phoenix

Licenses: NMLS # 175371, NMLS LO # 211940, MB #0903207

Lending Guidelines for Applewood Funding

Below are the general loan guidelines published on the Applewood 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 Applewood Funding.

Loan Example 1

Marisol takes a fix and flip loan from Applewood Funding in order to remodel a property to resale in Phoenix, AZ. The sales price of the house is $260,000. The loan to value (LTV) on the note is 75%. This means that Marisol will bring 25% of the purchase price to closing and the principle amount will be $195,000 on the deal. The terms of the loan dictate a 12% note for 6 months. They also stipulate a 1 point origination fee, that will also need to be paid at closing.

The borrower will have to fund a total of $32,400 upon closing to cover the $65,000 down payment plus the $1,950 origination fee. The lender will collect $1,950 in monthly interest from the Marisol. This is computed by taking the total loan value of $195,000, multiplying that by the 12% rate of interest, and then dividing that number by 12. If Marisol sells the property for $377,000 after 6 months, she would then make a total profit of $103,350 after subtracting the original principle of $195,000, the funds contributed at the close of $65,000, the origination points of $1,950, and the aggregate interest payments of $11,700. This gross profit doesn't include renovation costs.

Loan Example 2

Applewood Funding makes a hard money loan to Margie for a rehab project in Phoenix, AZ. The deal includes the following:

a) A $210,000 purchase price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 5% origination fee.

If Margie succeeds in her goal of a $294,000 sales price, the final numbers of the project will be the following:

$294,000 sales price
- $105,000 principle (50% LTV)
- $105,000 down payment (50% on 50% LTV)
- $5,250 origination points (5% of the $105,000 principle)
- $12,600 total interest paid (12 months x 12% interest)
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= $66,150 total profit (does not include taxes or renovation costs)