Worcester Financial

About Worcester Financial

Worcester Financial is private lender headquartered in Kansas City, MO. They provide loans in Kansas City. They offer lending solutions for many different situations and needs, including rental property loans and fix and flip loans. Their lending guidelines are versatile, including loans with a maximum LTV of 100%, terms between 6 months and 1 year, and rates ranging between 10% and 16%. The focus of their loans is on single family and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Kansas City

Lending Guidelines for Worcester Financial

Below are the general loan guidelines published on the Worcester Financial 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 Worcester Financial.

Loan Example 1

Worcester Financial makes a hard money loan to Julian for a rehab project in Kansas City, MO, on a house that costs $300,000. The lender agrees to write a loan with a 70% loan to value (LTV) so they are willing to extend $210,000 on the project. The loan also consists of the following features: 1) a 6 month length, 2) a 10% interest-only note, and 3) a five point origination fee.

Julian must contribute a total of $32,400 up front to pay the $90,000 down payment plus the $10,500 origination fee. Once the loan is closed and Julian takes on the property, he will need to begin making payments each month of $1,750 to Worcester Financial ($210,000 principle x 10% / 12 months). If Julian sells the project for $405,000 after 6 months, he would earn a gross profit of $84,000 after deducting the principle of $210,000, the funds contributed at the close of $90,000, the origination fee of $10,500, and the aggregate interest payments of $10,500. This amount doesn't account for renovation costs.

Loan Example 2

Juan locates a townhouse in Kansas City, MO to remodel and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Worcester Financial with the following parameters:

$240,000 sales price
70% loan-to-value (LTV)
12 month term
11% interest rate
5% origination fee

Assuming a $300,000 sales price at the end of the 12 month term, the outcome for the project would look like this:

$300,000 sales price
- $168,000 principle (70% LTV)
- $72,000 down payment (30% on 70% LTV)
- $8,400 origination fee (5% of the $168,000 principle amount)
- $18,480 interest payments (12 months x 11% interest)
-----------------------
= $33,120 total profit (does not include taxes or rehab costs)

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