New Funding Resources

About New Funding Resources

New Funding Resources is a Gaithersburg, MD-based private money lender providing funding in Washington DC, Maryland, and Virginia. They lend their own funds and specialize in the Greater DMV area. New Funding Resources has been in business since 2006. They provide fix-and-flip hard money loans, buy-and-hold loans, non-recourse loans, hard money bridge loans, and hard money refinance loans. Their lending guidelines are flexible, including loans with a maximum after-repair value of 65%. Their lending parameters do not include a minimum FICO rating.They don't verify borrower's income and can close as soon as the clear title report is available. They offer loans on all the following property types: single family units, multi family residences, office buildings, mixed-use buildings, and apartments.www.newfundingresources.com

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans, Hard Money Loans

Property Types Covered: Single Family, Multi Family, Office, Mixed Use, Apartment

Areas Served: DC, MD, VA

Lending Guidelines for New Funding Resources

Below are the general loan guidelines published on the New Funding Resources 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 New Funding Resources.

Loan Example 1

Maurice finds a duplex in Baltimore, MD to remodel and sell. Since he doesn't have enough cash available to acquire the $190,000 house outright, he takes out a fix-and-flip loan from New Funding Resources. As the lender sets a 75% loan to value, Maurice will be required to put 25% down and the principle amount of the loan will be $142,500. The parameters of the note also stipulate a four percent origination fee which will be paid at closing and a 6 month, interest-only note with a 11% rate of interest.

On top of the $5,700 origination fee, Maurice will also fund $47,500 of the purchase with his own cash, or 25% of the purchase price. he will then pay $1,306 monthly to the lender. If Maurice sells the rehabed project for $285,000 at the end of the 6 month term, his gross profit (not accounting for renovation costs) would be $81,463. This is calculated by taking the sales price ($285,000) and subtracting the original note amount ($142,500), the origination cost ($5,700), the cash he contributed to closing ($47,500), and the total interest expenses ($7,838).

Loan Example 2

Arlene locates a house in Baltimore, MD to remodel and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from New Funding Resources with the following parameters:

a) A $320,000 sales price, b) a 55% loan to value (LTV), c) a 6 month term, d) a 11% interest rate, and e) a 3% origination fee.

Once the rehab project is complete, if Arlene sells the project for $384,000, the outcome would be as follows:

$384,000 sales price
- $176,000 principle (55% LTV)
- $144,000 cash paid at closing (45% on 55% LTV)
- $5,280 origination fee (3% of the $176,000 principle)
- $9,680 interest payments (6 months x 11% interest)
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= $49,040 gross profit (does not include taxes or rehab costs)

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