Newport Center Mortgage

About Newport Center Mortgage

Based in Newport Beach, CA, Newport Center Mortgage is a hard money lender providing loans throughout California. They provide loans for a variety of situations, including construction loans, short term fix and flip loans, private commercial loans, and loans for investments properties. They make loans on all of the following types of properties: single family units, multi family residences, apartment buildings, offices, retail spaces, mixed use buildings, and industrial facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans

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

Areas Served: CA

Licenses: NMLS ID # 1323733, CA BRE # 01948374

Lending Guidelines for Newport Center Mortgage

Below are the general loan guidelines published on the Newport Center 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 Newport Center Mortgage.

Loan Example 1

Newport Center Mortgage makes a fix and flip loan to Addie for a renovation project in Los Angeles, CA, on a property that costs $280,000. The lender agrees to write a note with a 70% loan-to-value (LTV) so they will extend $196,000 on the project. The rate on the loan is 8% for a length of 18 months and the lender requires a two point origination fee at the closing. The interest is to be paid on a monthly basis and the principle amount will be returned after the property sells.

Therefore, Addie will need to contribute a $84,000 down payment in addition to paying a $3,920 origination fee. The monthly interest-only payments will then be $1,307 to Newport Center Mortgage. If she sells the remodeled house for $420,000 at the end of the 18 month term, her gross profit (not accounting for renovation expenses) would be $112,560. This is calculated by taking the sales price ($420,000) and subtracting the original note amount ($196,000), the origination cost ($3,920), the money she brought to closing ($84,000), and the total interest payments ($23,520).

Loan Example 2

Eric locates a townhouse in Los Angeles, CA to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Newport Center Mortgage with the following parameters:

a) A $210,000 purchase price, b) a 80% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 1% origination fee.

Eric intends to sell the project at the end of the term for $273,000. If he accomplishes his goal, the outcome would be as follows:

$273,000 sales price
- $168,000 principle on note (80% LTV)
- $42,000 cash paid at closing (20% on 80% LTV)
- $1,680 origination points (1% of the $168,000 principle amount)
- $16,800 total interest paid (12 months x 10% interest)
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= $44,520 total profit (does not include taxes or rehab costs)

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