Prime Plus Mortgages

About Prime Plus Mortgages

Prime Plus Mortgages is private money lender headquartered in Scottsdale, AZ. They provide loans throughout Phoenix. They offer buy and hold loans, fix-and-flip hard money loans, and hard money bridge loans. Their loan parameters are flexible, including rates ranging between 10% and 16% and loans with a maximum LTV of 80%. They do not require their borrowers to have a minimum FICO rating to receive a loan. They will consider different loan requests but primarily focus on single family and multi family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Phoenix

Licenses: NMLS-1602950, BK-0941773

Lending Guidelines for Prime Plus Mortgages

Below are the general loan guidelines published on the Prime Plus Mortgages 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 Plus Mortgages.

Loan Example 1

Willie is a house flipper in Phoenix, AZ. He discovers a run-down property and wants to renovate it and sell it for a profit. The property costs $250,000 but he does not have the full amount so he takes out a private money loan with Prime Plus Mortgages. The terms of the loan include a 65% loan to value (LTV), so he must bring 35% of the price as cash at closing, which makes the principle note amount $162,500. The terms of the deal dictate a 10% note for 18 months. They also require a 5 point origination fee, which will also have to be paid when the property closes.

By the parameters of the loan, Willie will have to pay a $8,125 origination fee plus 35% of the sales price, or $87,500, since there is a 65% LTV. he must then pay $1,354 monthly to the lender. If Willie accomplishes his goal of a $375,000 total sales price at the end of the loan term, he would pocket a gross profit of $92,500 after repaying the principle and subtracting the money he contributed at closing, the origination fee, and the total interest payments.

Loan Example 2

Prime Plus Mortgages issues a fix and flip loan to Charles for a remodeling project in Phoenix, AZ. The loan dictates the following:

$330,000 sales price
75% loan-to-value (LTV)
6 month term
11% interest rate
4% origination fee

Assuming a $462,000 sales price after the 6 month term, the final numbers for this deal would look like the following:

$462,000 sales price
- $247,500 principle (75% LTV)
- $82,500 down payment (25% on 75% LTV)
- $9,900 origination fee (4% of the $247,500 principle)
- $13,613 interest payments (6 months x 11% interest)
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= $108,488 total profit (does not include taxes or renovation costs)