Innovative Mortgage

About Innovative Mortgage

Innovative Mortgage is a St Petersburg, FL based private lender. They offer funding in Tampa and St Petersburg. They offer lending solutions for many different situations and needs, including loans for rental properties and fix and flip loans. Their loan parameters are flexible, including loans with a maximum LTV of 65%, terms between 3 years and 5 years, and rates starting at 10% . They do not require a minimum FICO rating to obtain a loan. The focus of their loans is 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: Tampa, St Petersburg

Licenses: NMLS #250769

Lending Guidelines for Innovative Mortgage

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

Loan Example 1

Leo finds a house in Tampa, FL to renovate and re-sell. Since he does not have enough cash available to acquire the $160,000 project outright, he takes out a hard money loan from Innovative Mortgage. The borrower will be required to fund 45% of the purchase price in cash to the closing based on a 55% loan to value set by the lending company. This makes the principle note from Innovative Mortgage $88,000. The terms of the deal also stipulate a two point origination fee which will be paid at the closing and a 12 month, interest-only note with a 8% interest rate.

Leo will need to contribute $72,000 at the closing (45% on the 55% LTV), plus he will pay the $1,760 origination fee. The lender will collect $587 in monthly interest from the borrower. This is computed by taking the full loan value of $88,000, multiplying that by the 8% interest rate, and then dividing that number by 12. Assuming he sells the renovated house for $208,000 at the end of the 12 month term, his gross profit (not including rehab expenses) would be $39,200. This is computed by taking the sales price ($208,000) and subtracting the principle ($88,000), the origination fee ($1,760), the funds he contributed to closing ($72,000), and the total interest payments ($7,040).

Loan Example 2

Anne finds a duplex in Tampa, FL to rehab and resell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Innovative Mortgage with the following parameters:

$350,000 purchase price
85% loan-to-value (LTV)
18 month term
9% rate of interest
1% origination fee

Anne intends to list the project at the end of the term for $525,000. If she achieves this goal, the deal numbers would be the following:

$525,000 sales price
- $297,500 loan principle (85% LTV)
- $52,500 cash paid at closing (15% on 85% LTV)
- $2,975 origination fee (1% of the $297,500 principle amount)
- $40,163 total interest paid (18 months x 9% interest)
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= $131,863 total profit (doesn't include taxes or rehab costs)

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