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As a leading specialist in fix-and-flip financing, MMTC offers quick closings (one week
in many cases), “make sense” underwriting for investors, and has
lent on a variety of property conditions. As such, we have closed
many loans that did not fit the criteria or the time frames of a
traditional bank or conventional lender. We offer very competitive
rates and fees for fix-and-flip financing with no prepayment
penalties and interest only payments. The structure and pricing of
each loan is subject to underwriting and approval, but some general
pricing ranges are as follows:OPTION 1: Designed for clients seeking a lower rate and fee
PERCENTAGE LENT: Depending on borrower qualifications, loans may be approved at 70%, 75%, or 80% of purchase price plus repair costs (subject also to appraisal). The flyer attached above is an example of a loan at 75% of cost. Cross-collateralization with other real estate already owned may be an option for the downpayment (ask for details).
RATE: 12% Fixed Rate, Interest Only, Payment Due Monthly
LOAN TERM: 6 Months with an Automatic 9 Month Extension. The extension fee begins to accrue in month 7 and is collected at the time the loan is paid off. The extension fee beginning in month 7 is the loan amount times .002 per month.
ORIGINATION FEE: 1.5 or 1.75% Origination fee plus standard Closing Costs outlined below. Additional .50% may apply IF cross-collateralizing in second lien position with another property for downpayment (ask me for details regarding cross-collateralization). No additional fee for cross-collateralization in first lien position.
NO PREPAYMENT PENALTY
Generally speaking, the credit score requirement for OPTION 1 is 680 or higher . In addition to credit, borrowers' liquidity, debt-to-income ratio and experience are all considered for loan approval. However, Merchants’ underwriting is more "investor friendly" than traditional, conventional loan underwriting.
OPTION 2: Designed for clients preferring a lower downpayment than in OPTION 1.
PERCENTAGE LENT: 90% of purchase price plus 90% of the repair funds. Additionally, the loan amount may not exceed 75% of the "after repair value " appraisal.
RATE: 12.95% Fixed, Interest Only Payment Due Monthly
LOAN TERM: 6 Months. No automatic extension.
ORIGINATION FEE: 2% or 2.25% at the time of closing and an additional 2% fee to be collected at the payoff of the loan. Additional .50% IF we across-collateralizing in second lien position with another property for downpayment (ask me for details regarding cross-collateralization). No additional fee for cross-collateralization in first lien position.
NO PREPAYMENT PENALTY
Generally speaking, the credit score requirement for OPTION 2 is 660 or higher . In addition to credit, borrower's liquidity, debt-to-income ratio and experience are all considered for loan approval. However, Merchants’ underwriting is more "investor friendly" than traditional, conventional loan underwriting.
ESTIMATED CLOSING COSTS FOR EITHER OPTION ARE: (NOTE: We do NOT charge for underwriting, document preparation or credit report!)
