Northeastern Financial
170 US Route 1, Suite 240
Falmouth, ME 04105
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About Northeastern Financial
Based in Falmouth, ME, Northeastern Financial is a hard money lender providing loans throughout Maine. They provide fix and flip hard money loans, private commercial loans, and new construction loans. They provide loans with a maximum LTV of 70%. The focus of their lending is for single family units, multi family residences, and undeveloped land.
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Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans
Property Types Covered: Single Family, Multi Family, Land
Areas Served: ME
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Lending Guidelines for Northeastern Financial
Below are the general loan guidelines published on the Northeastern Financial 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: N/A
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: N/A
Minimum FICO Score: N/A
Time to Close: N/ANew Construction 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: N/A
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 Northeastern Financial.
Loan Example 1
Tommie finds a property in Portland, ME to flip and resell. Since she does not have enough cash to buy the $340,000 house outright, she takes out a fix and flip loan from Northeastern Financial. Because the lender agrees to a 80% loan-to-value, Tommie will have to put 20% down so the principle amount of the loan will be $272,000. The loan is interest only, with monthly payments, and is for 18 months at 8% interest with 2 origination points paid when the deal closes.
Tommie will have to fund a total of $32,400 upon closing to pay the $68,000 down payment plus the $5,440 origination fee. she will then pay $1,813 per month to Northeastern Financial. If she sells the rehabed house for $476,000 at the end of the 18 month term, her total profit (not including remodeling costs) would be $97,920. This is computed by taking the sales price ($476,000) and subtracting the original note amount ($272,000), the origination fee ($5,440), the cash she brought to closing ($68,000), and the total interest payments ($32,640).
Loan Example 2
Manuel takes a fix and flip loan from Northeastern Financial in order to remodel a house to resell in Portland, ME. The loan has the following terms:
$250,000 sales price
70% loan-to-value (LTV)
6 month term
12% rate of interest
1% origination feeManuel plans to sell the project at the end of the term for $362,500. If he achieves this goal, the final numbers will be the following:
$362,500 sales price
- $175,000 principle on note (70% LTV)
- $75,000 down payment (30% on 70% LTV)
- $1,750 origination fee (1% of the $175,000 principle amount)
- $10,500 interest payments (6 months x 12% interest)
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= $100,250 gross profit (does not include taxes or rehab costs) -
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