Fortitude Funding

About Fortitude Funding

Headquartered in Rockville Centre, NY, Fortitude Funding is a hard money lender providing loans in Maryland and Washington DC. They offer loans for many different needs and situations, including hard money construction loans, commercial hard money loans, and fix and flip hard money loans. They issue loan amounts ranging from $100,000 to $1,000,000 with a maximum LTV of 70% and terms up to 1 year. They will lend funds to any borrower based on the value of the property and do not require a minimum FICO rating. They offer loans on the following types of properties: single family units, multi-family units, apartment buildings, office units, retail spaces, mixed use spaces, industrial buildings, and warehouses.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans

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

Areas Served: MD, DC

Lending Guidelines for Fortitude Funding

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

Loan Example 1

Fortitude Funding makes a fix-and-flip loan to Franklin for a renovation project in Baltimore, MD, on a house that costs $210,000. The loan-to-value (LTV) on the note is 75%. This means Franklin will bring 25% of the purchase price to closing and the principle amount will be $157,500 on the loan. The terms of the loan dictate a 9% note for 18 months. They also stipulate a 1 point origination fee, which will also have to be paid when the property closes.

In addition to paying the $1,575 origination fee, Franklin will also have to fund $52,500 of the purchase with his own money, or 25% of the purchase price. The lender will collect $1,181 in monthly interest from the Franklin. This is calculated by taking the total loan amount of $157,500, multiplying that by the 9% interest rate, and then dividing that amount by 12. If Franklin accomplishes his goal of a $304,500 total sales price when the loan expires, he would pocket a total profit of $71,663 after repaying the principle and deducting the cash he contributed at closing, the origination fee, and the monthly interest payments.

Loan Example 2

Fortitude Funding issues a private money loan to Rosie for a renovation project in Baltimore, MD. The loan dictates the following:

a) A $350,000 sales price, b) a 85% loan to value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 5% origination fee.

If Rosie succeeds in her goal of a $525,000 sales price, the numbers of the deal will be as follows:

$525,000 sales price
- $297,500 note principle (85% LTV)
- $52,500 cash paid at closing (15% on 85% LTV)
- $14,875 origination fee (5% of the $297,500 principle amount)
- $62,475 interest payments (18 months x 14% interest)
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= $97,650 gross profit (does not include taxes or rehab costs)

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