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:Program 1:
PERCENTAGE LENT: 90% of purchase price plus 90% of repairs. This is subject to the loan amount also being no more than 75% of the after repair appraised value of the property.
RATE: 8.95 to 10.95% (Depending on Borrower's Qualifications), Fixed Rate, Interest Only, Payment Due Monthly
ORIGINATION FEE: 2.0 or 2.25% Origination fee plus standard closing costs outlined below. An additional .50% may apply IF cross-collateralizing in second lien position with another property for downpayment (ask for detials regarding cross-colalteralization). No additional fee for cross-collateralization in first lien position.
LOAN TERM: 6 months with an automatic 6 month extension. The extension fee beginning in month 7 is the loan amount times .0033 per month.
NO PREPAYMENT PENALTY
Generally speaking, the credit score requirement for Program 1 is 680 or higher. In additon 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.
PROGRAM 2:
PERCENTAGE LENT: 70, 75, or 80% of Purchase Price Plus 70, 75, or 80% of Repairs. This is also subject to meeting after repair value appraisal requirements.
RATE/ORGINATION FEE: 10 to 12% (Depending on Borrower's Qualifications) with 1.5 or 1.75% Origination Fee OR 7.95 to 9.95% (Depending on Borrower's Qualifications) with 2.0 or 2.25% Origination Fee.
LOAN TERM: 6 months with automatic extensions for up to an additional nine months .
NO PREPAYMENT PENALTY
Generally speaking, the credit score requirement for Program 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!)
