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About Mustang Lending
Mustang Lending is an asset-based lender based in Cresson, TX providing funding in Dallas and Fort Worth. They provide fix-and-flip loans and commercial hard money loans. Their loan guidelines are flexible, including loans with a maximum LTV of 70%. They offer loans on many property types, including multi-family, retail storefronts, office units, apartment buildings, industrial buildings, storage facilities, and undeveloped land.
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Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans
Property Types Covered: Multi Family, Retail, Office, Apartment, Industrial, Storage, Land
Areas Served: Dallas, Fort Worth
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Lending Guidelines for Mustang Lending
Below are the general loan guidelines published on the Mustang Lending website. Please confirm all terms and rates directly with the lender.
Fix and Flip Loans
Loan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: NO
Minimum FICO Score: N/A
Time to Close: N/ACommercial Hard Money Loans
Loan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: NO
Minimum FICO Score: N/A
Time to Close: N/A -
Loan Examples
The following loans are for education purposes only. They do not represent actual loans executed by Mustang Lending.
Loan Example 1
Mustang Lending makes a fix and flip loan to Latisha for a remodeling project in Dallas, TX, on a property that is listed for $210,000. The lender agrees to issue a loan with a 55% loan-to-value (LTV) so they are willing to extend $115,500 on the project. The terms of the deal also stipulate a one point origination fee which will be paid at closing and a 12 month, interest-only note with a 9% interest rate.
On top of the $1,155 origination fee, Latisha will also need to fund $94,500 of the purchase with her own cash, or 45% of the purchase price. Mustang Lending will collect $866 in monthly interest payments from the borrower. This is computed by taking the full note amount of $115,500, multiplying by the 9% interest rate, and then dividing that amount by 12. Latisha's intention is to finish the house within the 12 months and resell it for $315,000. If she succeeds she will earn a gross profit of $93,450 ($315,000 price - $115,500 principle - $94,500 funds brough to closing - $1,155 origination fee - $10,395 in interest.
Loan Example 2
Jay takes a fix and flip loan from Mustang Lending so he can renovate a house to flip in Dallas, TX. The loan has the following parameters:
$230,000 sales price
65% loan-to-value (LTV)
18 month term
10% interest rate
3% origination feeBased on a $333,500 sales price at the end of the 18 month term, the numbers for the project would look like the following:
$333,500 sales price
- $149,500 loan principle (65% LTV)
- $80,500 cash paid at closing (35% on 65% LTV)
- $4,485 origination points (3% of the $149,500 principle)
- $22,425 total interest paid (18 months x 10% interest)
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= $76,590 gross profit (doesn't include taxes or rehab costs) -
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