Below are our basic lending parameters, however, we are flexible. If something makes sense to us, we will entertain the loan request.
- INTEREST RATES between 10 and 12% in today’s high interest rate market with short term treasuries yielding over 5.0%.
- DISCOUNT POINTS/ORIGINATION FEES: two points, no underwriting, processing, or credit check fees.
- PREPAYMENT PENALTIES: none, however there is a minimum interest amount period ranging from six to twelve months.
- LTV is higher than most competitors, if the borrower’s financials and track history are excellent up to 100% LTV in some limited cases, or as low as 60% LTV if financials and track history not so great. Construction lending is generally at 80-85% of cost with the requirement future value exceeds construction cost by a 10% margin.
- PROPERTY TYPES are residential one to four units, apartment buildings, and some industrial. Special use properties are considered on a case-by-case basis.
- TERM is generally one year with two six-month extensions.
- LOAN SIZE is $1 - $5 million.
- FEES: there is a loan doc fee or a legal fee depending on the loan, this can range from $1,000 to $5,000.
- PROPERTY LOCATIONS: generally, within the greater metro Los Angeles area where we are based, or on a case by case basis in other markets.
- LOAN TYPES: bridge acquisition, rehab, Fix-Flip, Major Remodel, Ground-Up New Construction.
- LIEN POSITION: First Trust Deeds, and Second Trust Deeds depending on borrower financials and CLTV.
- CLOSE LOANS in as little as three days if needed. The average time to close after signed LOI is about one week. We will work with mortgage brokers.
The difference between MO Financial and its competitors
Experience
MO Financial has continually been in the mortgage business for over twenty years funding mortgage loans. We have never taken a break, or suspended our lending activities, even in the depths of the 2008-2009 financial crisis. We have funded loans every single month, every year since 2003.
Quick Decision Making
The benefit of working with MO Financial is you do not need to fill out a loan application and wait to hear back from a loan officer who needs to run the loan request by his boss or an underwriter. You will work directly with Jeff, the originator, underwriter, and decision maker.
Creative Lending Solutions
We are open to creative strategies to fund your loan reqeust. We can create highly custom solutions to make the loan happen for you, including cross-collateral loans, loans that have partial release clauses, using property that has title issues and many more challenging issues. The more challenging the better, if the loan makes sense.