Vega Funding

About Vega Funding

Vega Funding is a Forest Hills, NY based hard money lender. They offer loans throughout New York, New Jersey, Connecticut, Pennsylvania, and Florida. They provide lending solutions for a variety of situations, including loans for rental properties, commercial hard money loans, and fix and flip hard money loans. Their loan parameters are flexible, including rates ranging between 10% and 14%, loan amounts ranging from $100,000 to $10,000,000 with a maximum LTV of 65%, and terms between 6 months and 12 months. They lend funds to any borrower based on the property value but also require a minimum FICO score of 650. They primarily make funding on single family and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: NY, NJ, CT, PA, FL

Lending Guidelines for Vega Funding

Below are the general loan guidelines published on the Vega Funding 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 Vega Funding.

Loan Example 1

Vega Funding makes a hard money loan to Letha for a remodeling project in Brooklyn, NY, on a property that costs $320,000. The borrower will be required to bring 25% of the purchase price in cash to the closing based on a 75% loan-to-value set by the lender. This makes the loan principle from Vega Funding $240,000. The parameters of the deal also include a three point origination fee which will be paid at the closing and a 18 month, interest-only note with a 14% rate of interest.

Letha will have to fund a total of $32,400 up front to cover the $80,000 down payment in addition to the $7,200 origination fee. Vega Funding will collect $2,800 in monthly interest from the borrower. This is computed by taking the full loan value of $240,000, multiplying that by the 14% rate of interest, and then dividing that amount by 12. If Letha sells the property for $432,000 after 18 months, she would then earn a gross profit of $54,400 after subtracting the original principle of $240,000, the cash contributed at the close of $80,000, the origination points of $7,200, and the total interest payments of $50,400. This gross profit does not include building costs.

Loan Example 2

Vega Funding issues a fix and flip loan to Meghan for a remodeling project in Brooklyn, NY. The loan dictates the following:

$160,000 purchase price
70% loan-to-value (LTV)
18 month term
10% rate of interest
1% origination fee

Based on a $192,000 sales price at the end of the 18 month term, the outcome for the project would look like this:

$192,000 sales price
- $112,000 loan principle (70% LTV)
- $48,000 down payment (30% on 70% LTV)
- $1,120 origination fee (1% of the $112,000 principle amount)
- $16,800 total interest paid (18 months x 10% interest)
-----------------------
= $14,080 gross profit (doesn't include taxes or renovation costs)

No Reviews Yet

Vega Funding currently has no reviews. To add a review now, click the link below:

Write a Review for Vega Funding