Custom Mortgage

About Custom Mortgage

Custom Mortgage is private lender headquartered in Encino, CA. They offer funding throughout the US. They offer hard money loans for commercial properties, loans for investments properties, fix-and-flip loans, cash out hard money loans, bridge loans, and hard money construction loans. Their lending guidelines are versatile, including loan amounts starting from $100,000 with a maximum LTV of 50% and rates starting at 7.99% . They do not require a minimum FICO score to obtain a loan. They provide loans on all the following property types: single family, multi family, apartments, office buildings, retail spaces, hotels/motels, storage facilities, senior housing facilities, mixed use, warehouse spaces, industrial facilities, medical offices, raw land, and churches.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land, Church

Areas Served: National

Licenses: CALBRE # 02018146, NMLS # 1556995

Lending Guidelines for Custom Mortgage

Below are the general loan guidelines published on the Custom Mortgage 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 Custom Mortgage.

Loan Example 1

Bruce finds a condo in Reading, PA to remodel and re-sell. Since he does not have enough cash available to buy the $250,000 project outright, he takes out a fix-and-flip loan from Custom Mortgage. The terms of the loan include a 55% loan to value (LTV), so he must bring 45% of the price as cash to closing, making the principle loan amount $137,500. The interest rate on the loan is 12% for a length of 6 months and the company requires a four point origination fee at the closing. The interest is to be paid on a monthly basis and the principle amount will be repaid after the property sells.

Therefore, Bruce will have to contribute a $112,500 down payment plus pay a $5,500 origination fee. Once the deal closes, he will need to pay the lender $1,375 in monthly interest payments, or 12% multiplied times $137,500 divided by 12 months in the year. If Bruce sells the house for $325,000 after 6 months, he would earn a gross profit of $61,250 after deducting the principle amount of $137,500, the money contributed at closing of $112,500, the origination points of $5,500, and the aggregate interest payments of $8,250. This profit does not include rehab costs.

Loan Example 2

Stefanie takes a hard money loan from Custom Mortgage so she can renovate a property to re-sell in Nashville, TN. The deal has the following parameters:

$230,000 purchase price
65% loan to value (LTV)
18 month term
10% interest rate
3% origination fee

Stefanie intends to list the house at the end of the term for $276,000. If she succeeds, the final numbers will be as follows:

$276,000 sales price
- $149,500 principle (65% LTV)
- $80,500 cash paid at closing (35% on 65% LTV)
- $4,485 origination points (3% of the $149,500 principle)
- $22,425 interest payments (18 months x 10% interest)
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= $19,090 gross profit (does not include taxes or rehab costs)

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