Prime Mortgage

About Prime Mortgage

Prime Mortgage is private lender based in El Paso, TX. They offer funding throughout El Paso. They provide lending solutions for many different situations, including short term fix and flip loans and loans for investments properties. The focus of their lending is for 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: El Paso

Lending Guidelines for Prime Mortgage

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

Loan Example 1

Therese takes a hard money loan from Prime Mortgage in order to remodel a house to resale in El Paso, TX. The price of the property is $330,000. The borrower will be required to bring 20% of the purchase price in cash to closing based on a 80% loan to value stipulated by the lending company. This makes the loan principle from Prime Mortgage $264,000. The terms of the note also stipulate a four percent origination fee that will be paid at closing and a 6 month, interest-only note with a 8% interest rate.

According to the terms of the loan, Therese will have to pay a $10,560 origination fee in addition to 20% of the purchase price, or $66,000, based on the 80% LTV. she must then pay $1,760 monthly to the lender. If Therese sells the house for $462,000 after 6 months, she would then make a total profit of $110,880 after subtracting the principle amount of $264,000, the money contributed at the close of $66,000, the origination points of $10,560, and the aggregate interest payments of $10,560. This profit does not account for remodeling costs.

Loan Example 2

Lana finds a house in El Paso, TX to rehab and re-sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Prime Mortgage with the following parameters:

a) A $400,000 sales price, b) a 60% loan to value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 4% origination fee.

If Lana accomplishes her goal of a $600,000 sales price, the final numbers of the deal would be as follows:

$600,000 sales price
- $240,000 principle (60% LTV)
- $160,000 cash paid at closing (40% on 60% LTV)
- $9,600 origination fee (4% of the $240,000 principle)
- $32,400 total interest paid (18 months x 9% interest)
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= $158,000 gross profit (doesn't include taxes or renovation costs)

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