Orchard Funding

About Orchard Funding

Based in Scottsdale, AZ, Orchard Funding is a private money lender offering funding throughout Arizona, California, and Colorado. They provide fix and flip loans, cash out hard money loans, and long term rental property loans. Their lending parameters are flexible, including loan amounts up to $3,000,000 with a maximum LTV of 90% and terms between 6 months and 12 months. They primarily provide funding for single family units and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: AZ, CA, CO

Licenses: NMLS # 388757, AZ Mortgage Banker License BK-0927805, CA Finance Lender License 60DBO-43763

Lending Guidelines for Orchard Funding

Below are the general loan guidelines published on the Orchard Funding 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 Orchard Funding.

Loan Example 1

Katrina closes on a $250,000 rehab project in Los Angeles, CA, using a fix and flip loan from Orchard Funding. The borrower will have to fund 20% of the sales price in cash to closing based on a 80% loan-to-value set by the lending company. This makes the loan principle from Orchard Funding $200,000. The parameters of the loan also stipulate a four point origination fee that will be paid at closing and a 18 month, interest only note with a 11% rate of interest.

The borrower will have to fund a total of $32,400 up front to pay the $50,000 down payment plus the $8,000 origination fee. After the loan is executed and Katrina takes the property, she will begin making payments each month of $1,833 to the lender ($200,000 principle x 11% / 12 months). If Katrina sells the project for $375,000 after 18 months, she would earn a gross profit of $84,000 after deducting the principle amount of $200,000, the cash paid at the close of $50,000, the origination points of $8,000, and the aggregate interest payments of $33,000. This gross profit does not include renovation costs.

Loan Example 2

Scott locates a property in Los Angeles, CA to remodel and sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Orchard Funding with the following parameters:

$250,000 sales price
60% loan-to-value (LTV)
12 month term
9% rate of interest
4% origination fee

If Scott succeeds in his goal of a $300,000 sales price, the outcome of the project would be the following:

$300,000 sales price
- $150,000 loan principle (60% LTV)
- $100,000 cash paid at closing (40% on 60% LTV)
- $6,000 origination fee (4% of the $150,000 principle amount)
- $13,500 interest payments (12 months x 9% interest)
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= $30,500 total profit (doesn't include taxes or rehab costs)

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