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 9 and 12% depending on LTV, property type, borrower liquidity, credit score, and experience.
- DISCOUNT POINTS/ORIGINATION FEES: generally, origination is two points of the loan/line amount.
- PREPAYMENT PENALTIES: the loans never have a prepay penalty, however there is a minimum interest due ranging from six to twelve months.
- LTV is higher than most competitors, if the borrower’s financial and loan repayment history are excellent up to 100% LTV in some limited cases, or as low as 60% LTV if financials and loan repayment history is less than average. Construction lending is generally 80-85% of the cost with future value exceeding cost by at least 10%.
- PROPERTY TYPES are residential one to four units, apartment buildings, and some industrial. Special use properties and retail are considered on a case-by-case basis.
- TERM is generally one year with two six-month extensions.
- LOAN SIZE preferred loan size is between $1M and $5M, however we will make smaller and larger loans on a case-by-case basis.
- FEES: We do not charge fees for underwriting or admin. Doc prep fees are around $600, unless the loan requires legal draft docs which can then run in the thousands.
- PROPERTY LOCATIONS: generally, within the greater 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. We have funded thirds in very limited circumstances.
- 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.
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MO Financial has continually been in the mortgage business since 2003 funding mortgage loans. We have never suspended our lending activities, even in the depths of the 2008-2009 financial crisis.
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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.
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We are open to creative strategies to fund your loan request. 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 problems and many more challenging issues. The more challenging the better, if the loan makes sense.
Owner and Principal:
Jeffrey Donovan