Empire State Mortgage

About Empire State Mortgage

Empire State Mortgage is private lender headquartered in Weehawken, NJ. They offer funding throughout New York, New Jersey, and Florida. They offer fix-and-flip loans, refinancing, loans for investments properties, and hard money loans for commercial properties. They make loans on all of the following property types: single family residences, multi family, apartments, office buildings, mixed use buildings, retail units, warehouses, storage facilities, and industrial facilities.

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

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

Areas Served: NY, NJ, FL

Licenses: NMLS# 95590

Lending Guidelines for Empire State Mortgage

Below are the general loan guidelines published on the Empire State 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 Empire State Mortgage.

Loan Example 1

April is a real estate investor in Brooklyn, NY. She finds an older property for sale and decides to rehab it and sell it for a profit. The house costs $270,000 but she doesn't have the full amount so she takes out a hard money loan with Empire State Mortgage. As the lender agrees to a 85% loan-to-value, April will be required to put 15% down so the principle amount of the note will be $229,500. The note is interest-only, paid monthly, and is for 6 months at 11% interest with 3 origination points to be paid when the deal closes.

In addition to paying the $6,885 origination fee, April will also need to fund $40,500 of the purchase with her own cash, or 15% of the purchase price. The monthly interest-only payments will then be $2,104 to the lender. At the expiration of the loan, she sells the renovated house for $405,000. After subtracting the $12,623 in total interest payments ($2,104 multiplied times 6 months), the $6,885 origination fee, the $229,500 principle on the loan, and the $40,500 she brought to closing, she will earn a gross profit of $115,493 ($405,000 price minus $289,508 in total costs). This profit would be reduced by any rehab costs paid by April.

Loan Example 2

Empire State Mortgage issues a hard money loan to Mona for a rehab project in Brooklyn, NY. The loan dictates the following:

a) A $320,000 purchase price, b) a 65% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 5% origination fee.

If Mona accomplishes her goal of a $400,000 sales price, the numbers of the project will be as follows:

$400,000 sales price
- $208,000 principle on note (65% LTV)
- $112,000 cash paid at closing (35% on 65% LTV)
- $10,400 origination fee (5% of the $208,000 principle amount)
- $12,480 total interest paid (6 months x 12% interest)
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= $57,120 total profit (does not include taxes or rehab costs)

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