About DFW Hard Money
Headquartered in Fort Worth, TX, DFW Hard Money is a private lender providing loans in Dallas and Fort Worth. Their focus is primarily on fix-and-flip hard money loans. They issue rates ranging between 13% and 14%, loan amounts ranging from $20,000 to $400,000 with a maximum LTV of 75%, and terms between 6 months and 9 months. They will consider different lending requests but usually focus on single family homes.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: Dallas, Fort Worth
Lending Guidelines for DFW Hard Money
Below are the general loan guidelines published on the DFW Hard Money website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: $20,000 - $400,000
Available Rates: 13% - 14%
Typical Terms: 6 months - 9 months
Points Charged: 2% - 3%
Max Loan-to-Value (LTV): 75%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: NO
Minimum FICO Score: N/A
Time to Close: 2 Days
The following loans are for education purposes only. They do not represent actual loans executed by DFW Hard Money.
Loan Example 1
Gwendolyn takes a fix-and-flip loan from DFW Hard Money in order to renovate a house to flip in Dallas, TX. The sales price of the property is $360,000. The borrower will have to contribute 15% of the purchase price in cash to closing based on a 85% loan-to-value set by the lending company. This makes the principle note from DFW Hard Money $306,000. The terms of the loan also include a two percent origination fee which is to be paid at closing and a 12 month, interest only note with a 13% interest rate.
According to the parameters of the note, Gwendolyn will be required to contribute a $6,120 origination fee in addition to 15% of the purchase price, or $54,000, based on the 85% LTV. she will then pay $3,315 monthly to DFW Hard Money. If Gwendolyn sells the remodeled house for $522,000 at the end of the 12 month term, her total profit (not accounting for remodeling expenses) would be $116,100. This is calculated by taking the purchase price ($522,000) and subtracting the principle ($306,000), the origination cost ($6,120), the money she contributed to closing ($54,000), and the total interest expenses ($39,780).
Loan Example 2
Rae finds a duplex in Dallas, TX to rehab and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from DFW Hard Money with the following parameters:
$200,000 purchase price
85% loan-to-value (LTV)
18 month term
12% rate of interest
3% origination fee
Assuming a $240,000 sales price at the end of the 18 month term, the outcome for this deal would look like the following:
$240,000 sales price
- $170,000 note principle (85% LTV)
- $30,000 down payment (15% on 85% LTV)
- $5,100 origination fee (3% of the $170,000 principle)
- $30,600 interest payments (18 months x 12% interest)
= $4,300 gross profit (does not include taxes or rehab costs)
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