Mortgage Boon

About Mortgage Boon

Based in Temecula, CA, Mortgage Boon is a hard money lender offering loans in California. Their lending focus is mainly on commercial hard money loans. The focus of their loans is on multi family residences.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family

Areas Served: CA

Licenses: License Number: 01504681

Lending Guidelines for Mortgage Boon

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

Loan Example 1

Mortgage Boon makes a private money loan to Carla for the purchase of a new office space after she is denied a standard loan by her credit union because she has a low credit rating. Since the borrower and lender agree on a 65% loan-to-value (LTV), Carla will bring $140,000 at the close and the principle will be $260,000 because the list price of the new building is $400,000. The loan also includes a 18 month length, a 9% rate of interest, interest only payments paid each month with a final payment when the note expires (with no pre-payment penalty), and a 2 percent origination fee. Carla can eliminate the note at any point if she pays off the $260,000 in principle, but she will have to make $1,950 monthly interest payments ($260,000 principle value x 9% interest rate / 12 months in a year) in the interim, or until the note expires. Because there is not a pre-payment penalty, the only other expense she would have to pay is the $5,200 origination charge which she will contribute at closing.

Loan Example 2

Hugh finds a property in Los Angeles, CA to rehab and sell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from Mortgage Boon with the following parameters:

a) A $220,000 sales price, b) a 55% loan-to-value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 5% origination fee.

If Hugh achieves his goal of a $330,000 sales price, the outcome of the project would be the following:

$330,000 sales price
- $121,000 principle on note (55% LTV)
- $99,000 cash paid at closing (45% on 55% LTV)
- $6,050 origination points (5% of the $121,000 principle amount)
- $7,260 interest payments (6 months x 12% interest)
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= $96,690 gross profit (does not include taxes or rehab costs)

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