Babylon Lending Service

About Babylon Lending Service

Based in Las Vegas, NV, Babylon Lending Service is an asset-based lender offering funding throughout Connecticut, New York, New Hampshire, and Massachusetts. They provide loans for a variety of situations, including fix and flip loans and bridge loans. Their loan guidelines are flexible, including loan amounts ranging from $50,000 to $2,000,000 and terms up to 3 years. Their lending parameters do not require a minimum FICO score. They will consider various lending scenarios but usually focus on single family units and multi-family units.

Loan Types Offered: Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: CT, NY, NH, MA

Lending Guidelines for Babylon Lending Service

Below are the general loan guidelines published on the Babylon Lending Service 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 Babylon Lending Service.

Loan Example 1

Kurt is an investor in Brooklyn, NY. He finds an older property for sale and wants to remodel it and sell it for a profit. The house has a cost of $330,000 but he does not have the full amount so he takes a fix-and-flip loan with Babylon Lending Service. The lender agrees to make a note with a 70% loan to value (LTV) so they are willing to extend $231,000 on the house. The parameters of the note also include a one point origination fee which is to be paid at the closing and a 6 month, interest-only note with a 9% interest rate.

Accordingly, the borrower will need to make a $99,000 down payment plus pay a $2,310 origination fee. The monthly interest only payments will then total $1,733 to Babylon Lending Service. At the end of the note, he sells the rehabed house for $412,500. After deducting the $10,395 in total interest payments ($1,733 times 6 months), the $2,310 origination fee, the $231,000 principle amount on the note, and the $99,000 he contributed to the closing, he will make a total profit of $69,795 ($412,500 price minus $342,705 in costs). This profit would then be reduced by any building costs paid out of pocket.

Loan Example 2

Babylon Lending Service issues a hard money loan to Cassie for a rehab project in Brooklyn, NY. The deal dictates the following:

a) A $190,000 sales price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 1% origination fee.

Cassie plans to sell the project when the note expires for $228,000. If she accomplishes her goal, the final numbers would be the following:

$228,000 sales price
- $95,000 principle (50% LTV)
- $95,000 cash paid at closing (50% on 50% LTV)
- $950 origination fee (1% of the $95,000 principle amount)
- $12,825 interest payments (18 months x 9% interest)
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= $24,225 gross profit (doesn't include taxes or renovation costs)

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