Direct Mortgage Loan Company

About Direct Mortgage Loan Company

Direct Mortgage Loan Company is a Philadelphia, PA based private money lender. They provide loans in Philadelphia. They provide loans for a variety of needs and situations, including fix and flip hard money loans, bridge loans, buy and hold loans, private commercial loans, hard money construction loans, and hard money refinancing. Their loan parameters are flexible, including loans with a maximum LTV of 100% and terms between 6 months and 2 years. They are able to lend funds to all borrowers based on the property value and not on a minimum FICO rating. They will make loans on the following types of properties: single family, multi family residences, apartment buildings, office buildings, retail units, and mixed use buildings.

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, Mixed Use

Areas Served: Philadelphia

Lending Guidelines for Direct Mortgage Loan Company

Below are the general loan guidelines published on the Direct Mortgage Loan Company 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 Direct Mortgage Loan Company.

Loan Example 1

Dana takes a hard money loan from Direct Mortgage Loan Company in order to rehab a townhouse to resale in Philadelphia, PA. The list price of the house is $200,000. Since the lender agrees to a 65% loan to value, Dana will have to put 35% down so the amount of the loan will be $130,000. The loan is interest-only, with monthly payments, and is for 18 months at 9% interest with 4 origination points paid at closing.

Dana must bring a total of $32,400 up front to cover the $70,000 down payment in addition to the $5,200 origination fee. she must then pay $975 monthly to Direct Mortgage Loan Company. Dana's plan is to finish the rehab by the end of the 18 months and re-sell it for $260,000. If she succeeds she will earn a gross profit of $37,250 ($260,000 price - $130,000 principle amount - $70,000 funds brough to closing - $5,200 origination points - $17,550 in total interest paid.

Loan Example 2

Direct Mortgage Loan Company makes a private money loan to Harold for a rehab project in Philadelphia, PA. The deal dictates the following:

$390,000 purchase price
50% loan-to-value (LTV)
12 month term
13% rate of interest
3% origination fee

If Harold succeeds in his goal of a $526,500 sales price, the numbers of the project would be as follows:

$526,500 sales price
- $195,000 principle on note (50% LTV)
- $195,000 down payment (50% on 50% LTV)
- $5,850 origination points (3% of the $195,000 principle)
- $25,350 interest payments (12 months x 13% interest)
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= $105,300 gross profit (doesn't include taxes or renovation costs)