Value Mortgage

About Value Mortgage

Value Mortgage is a Tualatin, OR based private lender. They offer loans in Oregon, Washington, and California. Their focus is primarily on fix and flip hard money loans. Their loan parameters are versatile, including loans with a maximum LTV of 80%. They will consider different loan scenarios but primarily focus on single family and multi-family units.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: OR, WA, CA

Licenses: NMLS #63677

Lending Guidelines for Value Mortgage

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

Loan Example 1

Cory takes a hard money loan from Value Mortgage in order to renovate a townhome to resale in Los Angeles, CA. The sales price of the property is $170,000. The loan-to-value (LTV) on the deal is 65%. This means Cory will bring 35% of the sales price to the closing and the principle amount will be $110,500 on the deal. The terms of the deal dictate a 8% note for 6 months. They also require a 1 point origination fee, that will also need to be paid upon closing.

Cory will need to bring $59,500 at closing (35% on the 65% loan to value), plus he will have to pay the $1,105 origination fee. Value Mortgage will collect $737 in monthly interest payments from the Cory. This is calculated by taking the total loan amount of $110,500, multiplying by the 8% interest rate, and then dividing that number by 12. Assuming Cory sells the rehabed project for $204,000 at the end of the 6 month term, his gross profit (not accounting for renovation costs) would be $28,475. This is calculated by taking the purchase price ($204,000) and subtracting the original note amount ($110,500), the origination fee ($1,105), the money he brought to closing ($59,500), and the total interest expenses ($4,420).

Loan Example 2

Value Mortgage makes a loan to Dawn for a renovation project in Los Angeles, CA. The deal dictates the following:

$290,000 sales price
70% loan-to-value (LTV)
18 month term
13% interest rate
4% origination fee

Based on a $420,500 sales price after the 18 month term, the final numbers for this deal would look like the following:

$420,500 sales price
- $203,000 note principle (70% LTV)
- $87,000 down payment (30% on 70% LTV)
- $8,120 origination points (4% of the $203,000 principle)
- $39,585 total interest paid (18 months x 13% interest)
-----------------------
= $82,795 gross profit (does not include taxes or rehab costs)

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