Hanover MC

About Hanover MC

Hanover MC is a hard money mortgage broker headquartered in Tustin, CA. They offer loans throughout Southern California. They provide loans for rental properties and fix-and-flip hard money loans. Their loan parameters are flexible, including loan amounts starting at $35,000. They lend money to any borrower based on the value of the property and not on a minimum credit score. They primarily offer loans on single family residences and multi-family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Southern California

Licenses: California Department of Real Estate - Broker License #01410448, NMLS I.D. Number: 337458

Lending Guidelines for Hanover MC

Below are the general loan guidelines published on the Hanover MC 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 Hanover MC.

Loan Example 1

Hanover MC makes a fix and flip loan to Clare for a rehab project in Acton, CA, on a property that costs $400,000. As the lender sets a 50% loan-to-value, Clare will be required to put 50% down so the amount of the note will be $200,000. The note is interest-only, paid monthly, and is for 6 months at 11% interest with 4 points to be paid when the deal closes.

Therefore, Clare will be required to contribute a $200,000 down payment plus pay a $8,000 origination fee. After the deal closes, she will have to pay Hanover MC $1,833 in monthly interest fees, or 11% times $200,000 divided by 12 months in the year. At the end of the loan, she sells the rehabed property for $520,000. After deducting the $11,000 in interest expenses ($1,833 times 6 months), the $8,000 origination fee, the $200,000 principle amount on the loan, and the $200,000 she brought to the closing, she will earn a gross profit of $101,000 ($520,000 price minus $419,000 in total costs). This amount would then be reduced by any rehab costs paid out of pocket.

Loan Example 2

Hanover MC makes a fix and flip loan to Beth for a rehab project in Acton, CA. The loan dictates the following:

$390,000 sales price
80% loan to value (LTV)
18 month term
8% rate of interest
3% origination fee

Beth intends to list the project when the note expires for $468,000. If she accomplishes her goal, the outcome would be as follows:

$468,000 sales price
- $312,000 note principle (80% LTV)
- $78,000 cash paid at closing (20% on 80% LTV)
- $9,360 origination fee (3% of the $312,000 principle amount)
- $37,440 interest payments (18 months x 8% interest)
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= $31,200 total profit (doesn't include taxes or rehab costs)