About First Liberty Funding
First Liberty Funding is private money lender based in San Diego, CA. They offer loans in California. Their lending focus is primarily on rental property loans. The focus of their lending is on single family residences.
Loan Types Offered: Investment Property Loans
Property Types Covered: Single Family
Areas Served: CA
Licenses: DRE license #01799052, NMLS # 305360
Lending Guidelines for First Liberty Funding
Below are the general loan guidelines published on the First Liberty Funding website. Please confirm all terms and rates directly with the lender.
Investment Property LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by First Liberty Funding.
Loan Example 1
First Liberty Funding issues a private money loan to Anna for a remodeling project in Los Angeles, CA, on a house that is listed for $160,000. The lender agrees to make a loan with a 55% loan-to-value (LTV) so they are willing to loan $88,000 on the property. The parameters of the deal also include a four percent origination fee that is to be paid at closing and a 12 month, interest only note with a 9% interest rate.
In addition to paying the $3,520 origination fee, Anna will also fund $72,000 of the purchase with her own money, or 45% of the sales price. she will then pay $660 monthly to First Liberty Funding. Assuming Anna sells the renovated project for $240,000 at the end of the 12 month term, her total profit (not including remodeling expenses) would be $68,560. This is computed by taking the sales price ($240,000) and subtracting the original principle ($88,000), the origination cost ($3,520), the cash she contributed to closing ($72,000), and the total interest expenses ($7,920).
Loan Example 2
Joy finds a house in Los Angeles, CA to renovate and resell. Since she does not have enough cash to buy the property outright, she takes a hard money loan from First Liberty Funding with the following parameters:
$220,000 sales price
70% loan to value (LTV)
12 month term
13% rate of interest
2% origination fee
Once the renovation project is complete, if Joy sells the house for $330,000, the outcome would be as follows:
$330,000 sales price
- $154,000 note principle (70% LTV)
- $66,000 down payment (30% on 70% LTV)
- $3,080 origination points (2% of the $154,000 principle amount)
- $20,020 interest payments (12 months x 13% interest)
= $86,900 gross profit (does not include taxes or rehab costs)
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