American Funding Corporation

About American Funding Corporation

American Funding Corporation is a Waterford, MI based hard money lender. They provide loans all across the US. Their focus is primarily on commercial loans. They offer loan amounts starting from $5,000,000 with a maximum LTV of 100%. They provide loans on all the following property types: multi-family units, retail storefronts, office units, apartment buildings, industrial facilities, and storage buildings.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Retail, Office, Apartment, Industrial, Storage

Areas Served: National

Lending Guidelines for American Funding Corporation

Below are the general loan guidelines published on the American Funding Corporation website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by American Funding Corporation.

Loan Example 1

American Funding Corporation makes a hard money loan to Sergio for the acquisition of a new office space after he is turned down for a standard loan by his credit union due to a subpar credit rating. The list price of the property is $320,000 and the lender agrees to fund 80% of the purchase price (the loan-to-value / "LTV"), or $256,000. The remaining $64,000 will be contributed by the borrower when the deal is closed. The parameters of the deal include a 6 month length, a 10% rate of interest, and a 4 origination fee paid by the borrower when the deal is closed. Sergio can eliminate the note at any point in time by paying back the $256,000 of principle, however, he will have to make $2,133 /month interest payments ($256,000 principle x 10% interest rate / 12 months) in the meantime, or up to the point the note expires. Since there isn't a pre-payment penalty, the only additional cost he will have to pay is the $10,240 origination charge which he will pay at the close.

Loan Example 2

Jaclyn locates a property in Salt Lake City, UT to rehab and re-sell. Because she does not have enough cash to buy the property outright, she takes a hard money loan from American Funding Corporation with the following parameters:

$190,000 sales price
80% loan-to-value (LTV)
18 month term
9% rate of interest
5% origination fee

Assuming a $237,500 sales price after the 18 month term, the outcome for this deal would look like this:

$237,500 sales price
- $152,000 principle on note (80% LTV)
- $38,000 down payment (20% on 80% LTV)
- $7,600 origination points (5% of the $152,000 principle)
- $20,520 total interest paid (18 months x 9% interest)
-----------------------
= $19,380 total profit (doesn't include taxes or rehab costs)

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