Finance of America Commercial

About Finance of America Commercial

Based in Charlotte, NC, Finance of America Commercial is a private money lender providing funding all throughout the United States. They offer lending solutions for a variety of situations and needs, including refinancing, hard money bridge loans, fix and flip hard money loans, construction loans, and private commercial loans. Their loan guidelines are versatile, including loan amounts starting from $50,000 with a maximum LTV of 75%, rates starting at 6.99% , and terms up to 9 months. They make loans on most property types, including single family residences, multi-family units, office buildings, retail spaces, industrial buildings, mixed use, and apartments.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: National

Licenses: AZ Mortgage Banker License BK #0926974, NMLS ID #1133465

Lending Guidelines for Finance of America Commercial

Below are the general loan guidelines published on the Finance of America Commercial 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 Finance of America Commercial.

Loan Example 1

Finance of America Commercial issues a hard money loan to Bernice for a remodeling project in Santa Rosa, CA, on a property that is listed for $230,000. As the lender agrees to a 85% loan-to-value, Bernice will be required to put 15% down so the amount of the note will be $195,500. The parameters of the loan also include a one point origination fee that will be paid at closing and a 18 month, interest only note with a 10% rate of interest.

In accordance with the parameters of the note, Bernice will be required to contribute a $1,955 origination fee plus 15% of the purchase price, or $34,500, since there is a 85% LTV. After the loan is executed and Bernice takes the property, she will have to begin making payments each month of $1,629 to Finance of America Commercial ($195,500 principle x 10% / 12 months). If Bernice sells the house for $345,000 after 18 months, she would realize a total profit of $83,720 after deducting the principle amount of $195,500, the funds contributed at closing of $34,500, the origination points of $1,955, and the total interest payments of $29,325. This profit does not account for rehab costs.

Loan Example 2

Arthur is a real estate investor in Alexandria, VA. He buys an older townhouse for a rehab project and takes a fix and flip loan from Finance of America Commercial with the following paramters:

$250,000 sales price
80% loan-to-value (LTV)
6 month term
12% rate of interest
1% origination fee

Once the rehab project is completed, if Arthur sells the house for $300,000, the final numbers would be as follows:

$300,000 sales price
- $200,000 principle on note (80% LTV)
- $50,000 down payment (20% on 80% LTV)
- $2,000 origination points (1% of the $200,000 principle amount)
- $12,000 total interest paid (6 months x 12% interest)
-----------------------
= $36,000 gross profit (doesn't include taxes or renovation costs)

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