NuWay Mortgage

About NuWay Mortgage

NuWay Mortgage is private money lender based in Chicago, IL. They offer loans in Chicago. They provide short term bridge loans, refinancing, and short term fix and flip loans. Their loan parameters are versatile, including loan amounts ranging from $50,000 to $5,000,000 with a maximum LTV of 70%. They are able to lend money to all borrowers based on the value of the property and do not require a minimum FICO score. They will consider various loan requests but generally focus on single family homes and multi family residences.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Chicago

Lending Guidelines for NuWay Mortgage

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

Loan Example 1

Tyler is a real estate investor in Chicago, IL. He finds an older property and decides to rehab it and flip it for a profit. The property has a cost of $240,000 but he doesn't have the full amount so he obtains a fix and flip loan with NuWay Mortgage. The terms of the note include a 65% loan-to-value (LTV), so he must contribute 35% of the price as cash at closing, which makes the principle loan amount $156,000. The interest rate on the note is 14% for a length of 18 months and the company requires a four point origination fee at the close. The interest payments are to be paid monthly and the principle will be returned after the property sells.

According to the parameters of the note, Tyler will have to contribute a $6,240 origination fee in addition to 35% of the purchase price, or $84,000, since there is a 65% LTV. The lender will collect $1,820 in monthly interest from the borrower. This is computed by taking the total note amount of $156,000, multiplying by the 14% rate of interest, and then dividing that amount by 12. Tyler's plan is to finish the rehab by the end of the 18 months and sell it for $312,000. If he succeeds he will make a profit of $33,000 ($312,000 sales price - $156,000 principle - $84,000 cash at closing - $6,240 origination points - $32,760 in total interest paid.

Loan Example 2

NuWay Mortgage issues a loan to Ian for a remodeling project in Chicago, IL. The loan includes the following:

$290,000 purchase price
60% loan-to-value (LTV)
18 month term
9% rate of interest
3% origination fee

If Ian succeeds in his goal of a $348,000 sales price, the final numbers of the deal would be as follows:

$348,000 sales price
- $174,000 loan principle (60% LTV)
- $116,000 down payment (40% on 60% LTV)
- $5,220 origination fee (3% of the $174,000 principle)
- $23,490 total interest paid (18 months x 9% interest)
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= $29,290 gross profit (doesn't include taxes or renovation costs)