First Funding

About First Funding

First Funding is a Bedford, TX based private lender who provides funding throughout Texas. They provide fix and flip hard money loans, hard money bridge loans, loans for investments properties, cash out loans, and hard money loans for commercial properties. Their lending guidelines are versatile, including rates ranging between 12% and 14%, terms between 3 months and 18 months, and loan amounts ranging from $25,000 to $3,000,000. They offer loans on numerous property types, including single family residences, multi-family units, apartment buildings, offices, retail spaces, mixed use spaces, raw land, and warehouse spaces.

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

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

Areas Served: TX

Lending Guidelines for First Funding

Below are the general loan guidelines published on the First Funding 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 First Funding.

Loan Example 1

Howard is an investor in Houston, TX. He locates an older property and decides to remodel it and sell it for a profit. The house costs $150,000 but he doesn't have the full amount so he takes a fix-and-flip loan with First Funding. The loan-to-value (LTV) on the note is 50%. This means Howard will need to bring 50% of the sales price to closing and the principle will be $75,000 on the loan. The rate on the loan is 14% for a length of 18 months and the lender requires a four point origination fee at the closing. The interest is to be paid monthly and the principle amount will be returned after the sale of the property.

The borrower must fund a total of $32,400 upon closing to pay the $75,000 down payment in addition to the $3,000 origination fee. The monthly interest only payments will then total $875 to First Funding. Assuming Howard sells the renovated project for $225,000 at the end of the 18 month term, his total profit (not accounting for renovation costs) would be $56,250. This is computed by taking the sales price ($225,000) and subtracting the original note amount ($75,000), the origination fee ($3,000), the cash he contributed to closing ($75,000), and the total interest expenses ($15,750).

Loan Example 2

Louise finds a duplex in Houston, TX to rehab and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from First Funding with the following parameters:

a) A $350,000 purchase price, b) a 75% loan-to-value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 4% origination fee.

If Louise achieves her goal of a $420,000 sales price, the final numbers of the deal will be the following:

$420,000 sales price
- $262,500 principle on note (75% LTV)
- $87,500 down payment (25% on 75% LTV)
- $10,500 origination points (4% of the $262,500 principle)
- $21,000 total interest paid (12 months x 8% interest)
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= $38,500 gross profit (does not include taxes or renovation costs)