Flagstone Mortgage

About Flagstone Mortgage

Headquartered in Houston, TX, Flagstone Mortgage is a private lender providing funding throughout Texas. They provide loans for rental properties, fix and flip loans, and hard money loans for commercial properties. They provide loan amounts ranging from $400,000 to $3,000,000 with a maximum LTV of 70% and terms between 1 year and 5 years. They do not require their borrowers to have a minimum FICO score to receive a loan. They will make loans on most property types, including single family residences, multi-family units, apartment buildings, offices, retail spaces, and industrial facilities.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Industrial

Areas Served: TX

Licenses: NMLS# 337283

Lending Guidelines for Flagstone Mortgage

Below are the general loan guidelines published on the Flagstone 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 Flagstone Mortgage.

Loan Example 1

Flagstone Mortgage issues a fix and flip loan to Jay for a rehab project in Houston, TX, on a property that costs $210,000. The terms of the note include a 65% loan to value (LTV), so he must contribute 35% of the price as cash to closing, which makes the principle note amount $136,500. The deal also includes these features: 1) a 12 month term, 2) a 13% interest-only note, and 3) a three percent origination charge.

Therefore, the borrower will be required to contribute a $73,500 down payment in addition to paying a $4,095 origination fee. The monthly interest-only payments will then be $1,479 to the lender. Jay's plan is to finish the renovation within the 12 months and resell it for $283,500. If he succeeds he will make a profit of $51,660 ($283,500 price - $136,500 principle - $73,500 cash at closing - $4,095 origination points - $17,745 in total interest paid.

Loan Example 2

Adrienne locates a property in Houston, TX to renovate and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Flagstone Mortgage with the following parameters:

a) A $290,000 sales price, b) a 50% loan-to-value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 5% origination fee.

Based on a $348,000 sales price after the 12 month term, the numbers for this deal would look like the following:

$348,000 sales price
- $145,000 principle (50% LTV)
- $145,000 down payment (50% on 50% LTV)
- $7,250 origination fee (5% of the $145,000 principle)
- $15,950 interest payments (12 months x 11% interest)
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= $34,800 gross profit (doesn't include taxes or rehab costs)