Fairway Finance

About Fairway Finance

Fairway Finance is a private money lender based in Luzerne, PA providing loans throughout Pennsylvania. They offer lending solutions for a variety of situations, including private commercial loans, short term fix and flip loans, and investment property loans. They provide loan amounts ranging from $10,000 to $200,000. Their lending guidelines do not include a minimum credit rating. They provide loans on all the following types of properties: single family homes, multi family, apartment buildings, offices, retail spaces, hotels and motels, storage facilities, senior living facilities, mixed use spaces, undeveloped land, churches, warehouse spaces, industrial facilities, and medical buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

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

Areas Served: PA

Licenses: NMLS 105707

Lending Guidelines for Fairway Finance

Below are the general loan guidelines published on the Fairway Finance 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 Fairway Finance.

Loan Example 1

Sophia closes on a $170,000 rehab project in Philadelphia, PA, using a hard money loan from Fairway Finance. As the lender agrees to a 55% loan-to-value, Sophia will have to put 45% down and the total amount of the loan will be $93,500. The terms of the loan also include a one point origination fee that is to be paid at closing and a 12 month, interest-only note with a 13% interest rate.

Accordingly, the borrower will need to contribute a $76,500 down payment in addition to paying a $935 origination fee. After the loan is executed and Sophia takes over the property, she will need to begin making payments each month of $1,013 to Fairway Finance ($93,500 principle x 13% / 12 months). If Sophia sells the house for $229,500 after 12 months, she would then make a gross profit of $46,410 after deducting the principle of $93,500, the cash contributed at the close of $76,500, the origination points of $935, and the total interest payments of $12,155. This amount doesn't account for renovation costs.

Loan Example 2

Neil locates a townhouse in Philadelphia, PA to rehab and resell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Fairway Finance with the following parameters:

$370,000 purchase price
65% loan-to-value (LTV)
12 month term
8% interest rate
3% origination fee

If Neil achieves his goal of a $481,000 sales price, the final numbers of the deal would be the following:

$481,000 sales price
- $240,500 note principle (65% LTV)
- $129,500 down payment (35% on 65% LTV)
- $7,215 origination points (3% of the $240,500 principle)
- $19,240 total interest paid (12 months x 8% interest)
-----------------------
= $84,545 gross profit (doesn't include taxes or renovation costs)

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