Petaluma Home Loans

About Petaluma Home Loans

Petaluma Home Loans is hard money lender based in Petaluma, CA. They provide funding throughout these locations: Santa Rosa, Windsor, Healdsburg, Rohnert Park, Sebastopol, Cotati, Petaluma, Novato, Sonoma, San Rafael, and San Francisco. They offer fix and flip hard money loans and buy and hold loans. They will consider various lending requests but primarily focus on single family residences and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Santa Rosa, Windsor, Healdsburg, Rohnert Park, Sebastopol, Cotati, Petaluma, Novato, Sonoma, San Rafael, San Francisco, Marin County

Licenses: BRE #00987600/01215943, NMLS #249655/1850

Lending Guidelines for Petaluma Home Loans

Below are the general loan guidelines published on the Petaluma Home Loans 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 Petaluma Home Loans.

Loan Example 1

Petaluma Home Loans issues a fix-and-flip loan to Tiffany for a renovation project in Santa Rosa, CA, on a house that costs $370,000. The loan-to-value (LTV) on the note is 65%. This means that Tiffany will have to bring 35% of the purchase price to closing and the principle amount will be $240,500 on the loan. The interest rate on the note is 12% for a term of 12 months and the company requires a three point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle will be returned after the sale of the property.

Tiffany will have to fund a total of $32,400 up front to pay the $129,500 down payment in addition to the $7,215 origination fee. Once the deal closes, she will pay the lender $2,405 in monthly interest fees, or 12% times $240,500 divided by 12 months in a year. If Tiffany sells the house for $555,000 after 12 months, she would then earn a gross profit of $148,925 after subtracting the principle of $240,500, the money contributed at closing of $129,500, the origination points of $7,215, and the aggregate interest payments of $28,860. This gross profit does not account for remodeling costs.

Loan Example 2

Delores takes a hard money loan from Petaluma Home Loans in order to renovate a townhouse to flip in Santa Rosa, CA. The loan has the following terms:

$240,000 purchase price
70% loan-to-value (LTV)
18 month term
13% interest rate
2% origination fee

If Delores succeeds in her goal of a $348,000 sales price, the outcome of the project would be as follows:

$348,000 sales price
- $168,000 principle (70% LTV)
- $72,000 cash paid at closing (30% on 70% LTV)
- $3,360 origination points (2% of the $168,000 principle)
- $32,760 total interest paid (18 months x 13% interest)
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= $71,880 total profit (doesn't include taxes or rehab costs)