HG Mortgage

About HG Mortgage

HG Mortgage is a private money lender headquartered in Weston, FL providing funding in South Florida. Their lending focus is mainly on fix-and-flip loans. Their lending guidelines are versatile, including terms between 6 months and 3 years and rates ranging between 8% and 15%. The focus of their lending is on single family units and multi family residences.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: South Florida

Lending Guidelines for HG Mortgage

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

Loan Example 1

Matthew is a house flipper in Belle Glade, FL. He discovers a run-down property and decides to remodel it and sell it for a profit. The house costs $380,000 but he does not have the full amount so he takes out a hard money loan with HG Mortgage. The borrower will have to bring 40% of the purchase price in cash to the closing based on a 60% loan to value set by the lending company. This makes the loan principle from HG Mortgage $228,000. The note is interest-only, paid monthly, and is for 18 months at 8% interest with 3 points paid at closing.

Matthew will have to bring $152,000 to the closing (40% on the 60% LTV), plus he will have to pay the $6,840 origination fee. After the loan closes, he will have to pay HG Mortgage $1,520 in monthly interest fees, or 8% multiplied by $228,000 divided by 12 months in a year. At the expiration of the loan, he sells the renovated house for $570,000. After subtracting the $27,360 in total interest payments ($1,520 multiplied by 18 months), the $6,840 origination fee, the $228,000 principle amount on the loan, and the $152,000 he brought to the closing, he will earn a gross profit of $155,800 ($570,000 sales price minus $414,200 in costs). This profit would be reduced by any rehab costs paid out of pocket.

Loan Example 2

HG Mortgage issues a fix and flip loan to Jeri for a remodeling project in Belle Glade, FL. The deal includes the following:

$330,000 purchase price
85% loan-to-value (LTV)
6 month term
14% rate of interest
2% origination fee

Assuming a $495,000 sales price at the end of the 6 month term, the outcome for this project would look like the following:

$495,000 sales price
- $280,500 principle (85% LTV)
- $49,500 down payment (15% on 85% LTV)
- $5,610 origination fee (2% of the $280,500 principle)
- $19,635 interest payments (6 months x 14% interest)
-----------------------
= $139,755 total profit (doesn't include taxes or rehab costs)