Diversified Funding Incorporated

About Diversified Funding Incorporated

For 40 years, DFI has been a leading private lender in the greater Boston area. We have earned our reputation as a reliable and responsive lender to investors and developers seeking to acquire, develop or refinance real estate.We provide real estate loans that offer a wide variety of borrowers the convenience and confidence that other lenders cannot deliver. Our loans range from $200K to $10MM and can be secured by First or Junior mortgages on existing or to be constructed income, for-sale developments, or land. Loan terms are typically 2 months to 5 years. We hold all of our loans in our portfolio. This enables our experienced real estate professionals to commit to and close transactions quickly.

Loan Types Offered: Hard Money Loans, 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

Areas Served: MA, NH, RI

Lending Guidelines for Diversified Funding Incorporated

Below are the general loan guidelines published on the Diversified Funding Incorporated 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 Diversified Funding Incorporated.

Loan Example 1

Diversified Funding Incorporated makes a hard money loan to Steven for a remodeling project in Boston, MA, on a house that costs $400,000. Because the lender sets a 55% loan-to-value, Steven will be required to put 45% down so the total amount of the note will be $220,000. The interest rate on the note is 9% for a term of 18 months and the company requires a five point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be paid back after the sale of the property.

According to the terms of the note, Steven will have to pay a $11,000 origination fee plus 45% of the sales price, or $180,000, based on the 55% LTV. After the loan closes, he will need to pay Diversified Funding Incorporated $1,650 in monthly interest payments, or 9% multiplied times $220,000 divided by 12 months in a year. If Steven sells the house for $540,000 after 18 months, he would make a gross profit of $99,300 after subtracting the original principle of $220,000, the cash paid at closing of $180,000, the origination points of $11,000, and the aggregate interest payments of $29,700. This amount does not account for renovation costs.

Loan Example 2

Jerome finds a house in Boston, MA to rehab and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from Diversified Funding Incorporated with the following parameters:

a) A $390,000 sales price, b) a 65% loan to value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 5% origination fee.

Jerome plans to list the project when the note expires for $507,000. If he succeeds, the final numbers will be the following:

$507,000 sales price
- $253,500 principle on note (65% LTV)
- $136,500 down payment (35% on 65% LTV)
- $12,675 origination fee (5% of the $253,500 principle)
- $45,630 total interest paid (18 months x 12% interest)
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= $58,695 gross profit (does not include taxes or rehab costs)

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