Velocity Mortgage Capital

About Velocity Mortgage Capital

Velocity Mortgage Capital is a wholesale, nationwide lender for asset-based, investment real estate, lending since 2004. We never look at the tax returns or personal income statements of our borrowers. Instead, our focus is the income producing potential of the investment property itself.

As a direct lender, we are the direct source of financing for different mortgage brokerages, investment firms, financial advisors, and bankers around the country. Our unique product line makes us perfect for investors that have trouble qualifying with traditional institutions but are not interested in hard money options. We are not a Hard Money Lender, nor are we a Full Doc lender.

Some of our product highlights are:

- 1-4 SFR’s (Investment - NO/O), 5+ Multi-family, Mixed-, Commercial

- NO INCOME, NO ASSET & NO TAX VERIFICATION TO THE BORROWER

- $75K –$5MM LOAN AMOUNTS

- Up to 5% allowed to broker in fees, points and YSP (We can also close in your name)

- 30 year fixed or 24 month IO

- 12 month IO Fix-and-Flip with rehab funds available

Loan Types Offered: Hard Money Loans, Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Storage, Mixed Use, Warehouse, Industrial, Medical

Areas Served: National

Lending Guidelines for Velocity Mortgage Capital

Below are the general loan guidelines published on the Velocity Mortgage Capital 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 Velocity Mortgage Capital.

Loan Example 1

Phillip is a house flipper in Chesapeake, VA. He locates an older property for sale and wants to remodel it and sell it for a profit. The house has a cost of $310,000 but he does not have the full amount so he obtains a private money loan with Velocity Mortgage Capital. As the lender sets a 65% loan-to-value, Phillip will be required to put 35% down and the amount of the note will be $201,500. The terms of the deal dictate a 13% note for 12 months. They also stipulate a 3 point origination fee, that will also need to be paid at closing.

Phillip will need to contribute $108,500 to closing (35% on the 65% loan to value), plus he will pay the $6,045 origination fee. After the deal is closed and Phillip takes the property, he will have to begin making monthly payments of $2,183 to Velocity Mortgage Capital ($201,500 principle x 13% / 12 months). Assuming Phillip sells the renovated project for $403,000 at the end of the 12 month term, his total profit (not accounting for renovation costs) would be $60,760. This is computed by taking the purchase price ($403,000) and subtracting the original note amount ($201,500), the origination cost ($6,045), the funds he brought to closing ($108,500), and the total interest expenses ($26,195).

Loan Example 2

Krista is a an investor in Tucson, AZ. She purchases a run-down house for a remodeling project and takes out a private money loan from Velocity Mortgage Capital with the following features:

a) A $240,000 purchase price, b) a 75% loan to value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 5% origination fee.

If Krista achieves her goal of a $324,000 sales price, the final numbers of the deal will be as follows:

$324,000 sales price
- $180,000 loan principle (75% LTV)
- $60,000 cash paid at closing (25% on 75% LTV)
- $9,000 origination fee (5% of the $180,000 principle)
- $16,200 interest payments (12 months x 9% interest)
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= $58,800 total profit (doesn't include taxes or renovation costs)