Sterling Home Loans

About Sterling Home Loans

Sterling Home Loans is a private lender headquartered in Mission Viejo, CA providing loans in California. They offer loans for a variety of situations and needs, including private commercial loans and fix and flip hard money loans. They issue loans with a maximum LTV of 60%. They do not require a minimum credit score to obtain a loan. They offer loans on all the following property types: single family residences, multi family, apartments, office units, retail spaces, industrial buildings, and storage buildings.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Industrial, Storage

Areas Served: CA

Licenses: Cal DRE #00658801, NMLS #236875

Lending Guidelines for Sterling Home Loans

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

Loan Example 1

Sandra takes a private money loan from Sterling Home Loans in order to renovate a duplex to flip in Los Angeles, CA. The sales price of the property is $320,000. The terms of the note include a 70% loan-to-value (LTV), so she must contribute 30% of the price as cash to closing, making the principle note amount $224,000. The note is interest only, with monthly payments, and is for 12 months at 10% interest with 4 points to be paid when the deal closes.

Sandra will have to contribute $96,000 at the closing (30% on the 70% loan to value), plus she will need to pay the $8,960 origination fee. Once the loan is executed and Sandra takes on the property, she will need to begin making monthly payments of $1,867 to the lender ($224,000 principle x 10% / 12 months). At the end of the note, she sells the rehabed property for $384,000. After deducting the $22,400 in interest payments ($1,867 multiplied times 12 months), the $8,960 origination fee, the $224,000 principle amount on the note, and the $96,000 she brought to closing, she will make a gross profit of $32,640 ($384,000 sales price minus $351,360 in costs). This amount would then be reduced by any rehab costs paid by Sandra.

Loan Example 2

Mitchell takes out a private money loan from Sterling Home Loans in order to rehab a townhouse to flip in Los Angeles, CA. The deal has the following parameters:

$400,000 sales price
85% loan-to-value (LTV)
6 month term
9% interest rate
5% origination fee

Based on a $520,000 sales price after the 6 month term, the outcome for this project would look like the following:

$520,000 sales price
- $340,000 note principle (85% LTV)
- $60,000 cash paid at closing (15% on 85% LTV)
- $17,000 origination fee (5% of the $340,000 principle)
- $15,300 total interest paid (6 months x 9% interest)
-----------------------
= $87,700 total profit (doesn't include taxes or renovation costs)

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