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:INTEREST RATES:
The interest rate is typically 12.0% fixed and is subject to underwriting and approval. The payments on the fix-and-flip loan are interest only on the total loan amount and are due monthly at the first of the month.
ORIGINATION FEE:
When there are no deviations to MMTC’s underwriting guidelines, the standard origination fee is 1.50% of the loan amount which is paid by the borrower at the time of loan closing. The origination fee paid at the time of loan closing is for the first 6 months of the 15th month loan. If the loan is still outstanding after the first six months, there is a “deferred” loan fee of 20 basis points (.002 of the loan amount) per month that will be added to the loan payoff for any of the remaining months that the loan is outstanding after the 6th month through maturity at the 15th month.
Additional origination charges may apply for deviations to MMTC’s standard underwriting guidelines. For example, if the itemized improvements to be made to the property exceed the lesser of $30,000 or 30% of the purchase price of the property, a higher origination fee will apply (typically 1.75%).
