Budget Mortgage Corp

About Budget Mortgage Corp

Budget Mortgage Corp is private money lender headquartered in Los Angeles, CA. They offer funding throughout California. They provide commercial loans, long term rental property loans, and fix-and-flip loans. They will lend money to all borrowers based on the property value and do not require a minimum FICO score. They will make loans on the following property types: single family, multi-family units, apartment buildings, offices, retail units, mixed use buildings, and industrial buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial

Areas Served: CA

Licenses: California DRE Broker #01891885, Washington Consumer Loan License CL - 388808, NMLS Unique ID 388808

Lending Guidelines for Budget Mortgage Corp

Below are the general loan guidelines published on the Budget Mortgage Corp 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 Budget Mortgage Corp.

Loan Example 1

Christopher finds a house in Los Angeles, CA to rehab and re-sell. Since he does not have enough cash on-hand to purchase the $230,000 project outright, he decides to take out a private money loan from Budget Mortgage Corp. The borrower will need to bring 30% of the purchase price in cash to the closing based on a 70% loan to value stipulated by the lending company. This makes the loan principle from Budget Mortgage Corp $161,000. The interest rate on the note is 13% for a term of 18 months and the company requires a three point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle will be repaid after the sale of the property.

In addition to paying the $4,830 origination fee, Christopher will also fund $69,000 of the purchase with his own money, or 30% of the purchase price. The monthly interest only payments will then be $1,744 to Budget Mortgage Corp. Christopher's plan is to finish the renovation by the end of the 18 months and re-sell it for $310,500. If he succeeds he will earn a gross profit of $44,275 ($310,500 sales price - $161,000 principle amount - $69,000 cash at closing - $4,830 origination fee - $31,395 in interest.

Loan Example 2

Marcy locates a house in Los Angeles, CA to rehab and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Budget Mortgage Corp with the following parameters:

a) A $340,000 sales price, b) a 65% loan to value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 1% origination fee.

Assuming a $442,000 sales price after the 18 month term, the numbers for this deal would look like this:

$442,000 sales price
- $221,000 principle on note (65% LTV)
- $119,000 down payment (35% on 65% LTV)
- $2,210 origination fee (1% of the $221,000 principle)
- $33,150 total interest paid (18 months x 10% interest)
-----------------------
= $66,640 total profit (does not include taxes or rehab costs)

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