Arrow Financial

About Arrow Financial

Arrow Financial is a private lender headquartered in Rancho Cucamonga, CA offering loans throughout San Bernardino. Their focus is mainly on commercial loans. Their lending parameters are flexible, including loan amounts ranging from $250,000 to $50,000,000. They will make loans on many property types, including multi family residences, apartment buildings, office units, retail units, hotels, storage buildings, mixed use buildings, and industrial facilities.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Mixed Use, Industrial

Areas Served: San Bernardino, Riverside County, Los Angeles County

Licenses: Cal Bre License #1280711, NMLS #341564

Lending Guidelines for Arrow Financial

Below are the general loan guidelines published on the Arrow Financial 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 Arrow Financial.

Loan Example 1

Gabriel is an entrepreneur in San Bernardino, CA. He decides to buy a new warehouse for his company but he is not able to get a conventional mortgage loan from his bank because of his below average FICO score. He looks to Arrow Financial for a commercial hard money loan to close the acquisition. The property costs $250,000. Since there is a 65% loan-to-value (LTV) agreed to by the lender, the principle is $162,500. The additional $87,500 will be the responsibility of the borrower. The lender additionally lays out the following terms to the deal: 1) a 12% interest rate, 2) a 12 month term with interest only payments to be paid monthly, 3) an origination fee of 2 percent paid by the borrower at the close, and 4) no penalty for pre-payment. Gabriel can eliminate the note at any time by paying off the $162,500 in principle, but he will be required to make $1,625 per month interest payments ($162,500 principle x 12% interest / 12 months) in the meantime, or up to the point the loan expires. Because there isn't a pre-payment penalty, the only other cost he would have to pay is the $3,250 origination fee which he will contribute at the close.

Loan Example 2

Blanca takes a private money loan from Arrow Financial in order to renovate a property to resell in San Bernardino, CA. The deal has the following parameters:

a) A $250,000 sales price, b) a 55% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 4% origination fee.

Blanca intends to list the house at the end of the term for $350,000. If she accomplishes her goal, the deal numbers will be as follows:

$350,000 sales price
- $137,500 loan principle (55% LTV)
- $112,500 down payment (45% on 55% LTV)
- $5,500 origination points (4% of the $137,500 principle amount)
- $16,500 interest payments (12 months x 12% interest)
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= $78,000 gross profit (doesn't include taxes or rehab costs)

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