The Mortgage Banc

About The Mortgage Banc

The Mortgage Banc is a hard money lender headquartered in Columbus, OH providing funding in Ohio. They provide lending solutions for many different situations and needs, including investment property loans, builder loans, and fix and flip loans. They offer terms up to 30 years and loans with a maximum LTV of 70%. The focus of their lending is for single family homes, multi family residences, and undeveloped land.

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

Property Types Covered: Single Family, Multi Family, Land

Areas Served: OH

Licenses: MB.802687.000 SM.501873.000 NMLS 281198

Lending Guidelines for The Mortgage Banc

Below are the general loan guidelines published on the The Mortgage Banc 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 The Mortgage Banc.

Loan Example 1

Louis takes a private money loan from The Mortgage Banc in order to remodel a condo to resale in Cincinnati, OH. The list price of the property is $200,000. The borrower will need to contribute 15% of the sales price in cash to closing based on a 85% loan to value set by the lender. This makes the principle amount from The Mortgage Banc $170,000. The deal also has these features: 1) a 12 month length, 2) a 11% interest only note, and 3) a five point origination charge.

In accordance with the parameters of the loan, Louis will be required to pay a $8,500 origination fee plus 15% of the sales price, or $30,000, since there is a 85% LTV. The monthly interest only payments will then be $1,558 to the lender. If Louis sells the property for $290,000 after 12 months, he would then realize a total profit of $62,800 after deducting the principle of $170,000, the money contributed at closing of $30,000, the origination points of $8,500, and the aggregate interest payments of $18,700. This amount does not account for renovation costs.

Loan Example 2

George locates a house in Cincinnati, OH to renovate and sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from The Mortgage Banc with the following parameters:

$200,000 sales price
75% loan-to-value (LTV)
18 month term
10% interest rate
2% origination fee

After the renovation project is complete, if George sells the property for $240,000, the outcome would be as follows:

$240,000 sales price
- $150,000 principle (75% LTV)
- $50,000 cash paid at closing (25% on 75% LTV)
- $3,000 origination fee (2% of the $150,000 principle)
- $22,500 total interest paid (18 months x 10% interest)
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= $14,500 gross profit (doesn't include taxes or rehab costs)