Commonwealth Equity Funding

About Commonwealth Equity Funding

Commonwealth Equity Funding is an asset-based lender in Boston, MA providing loans throughout the US. They provide fix and flip hard money loans, commercial loans, ground up construction loans, and bridge loans. Their loan guidelines are versatile, including terms between 3 months and 2 years. They will lend funds to all borrowers based on the property value and do not require a minimum FICO rating. They make loans on many property types, including single family units, multi-family units, apartment buildings, offices, retail units, industrial buildings, and storage buildings.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

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

Areas Served: National

Lending Guidelines for Commonwealth Equity Funding

Below are the general loan guidelines published on the Commonwealth Equity Funding 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 Commonwealth Equity Funding.

Loan Example 1

Shirley closes on a $390,000 renovation project in Spring, TX, using a fix and flip loan from Commonwealth Equity Funding. The lender agrees to issue a loan with a 75% loan to value (LTV) so they are willing to loan $292,500 on the project. The loan is interest-only, with monthly payments, and is for 6 months at 14% interest with 2 points paid at closing.

Therefore, Shirley will be required to contribute a $97,500 down payment plus pay a $5,850 origination fee. After the loan is executed and Shirley takes the project, she will have to begin making monthly payments of $3,413 to Commonwealth Equity Funding ($292,500 principle x 14% / 12 months). If Shirley sells the property for $526,500 after 6 months, she would realize a gross profit of $110,175 after subtracting the principle amount of $292,500, the funds contributed at the close of $97,500, the origination points of $5,850, and the total interest payments of $20,475. This gross profit does not include rehab costs.

Loan Example 2

Rebecca locates a duplex in San Bernardino, CA to renovate and re-sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Commonwealth Equity Funding with the following parameters:

$280,000 sales price
50% loan-to-value (LTV)
6 month term
9% rate of interest
3% origination fee

After the rehab project is finished, if Rebecca sells the house for $364,000, the outcome would be as follows:

$364,000 sales price
- $140,000 note principle (50% LTV)
- $140,000 down payment (50% on 50% LTV)
- $4,200 origination points (3% of the $140,000 principle)
- $6,300 interest payments (6 months x 9% interest)
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= $73,500 gross profit (doesn't include taxes or renovation costs)

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