About Hallmark Funding
Based in Atlanta, GA, Hallmark Funding is a hard money lender providing funding throughout Alabama, Georgia, Florida, Minnesota, South Carolina, Tennessee, and Wisconsin. Their focus is mainly on fix-and-flip loans. Their lending guidelines include a minimum FICO rating of 620. The focus of their loans is on single family units and multi-family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: AL, GA, FL, MN, SC, TN, WI
Licenses: NMLS #169812
Lending Guidelines for Hallmark Funding
Below are the general loan guidelines published on the Hallmark Funding website. Please confirm all terms and rates directly with the lender.
Fix and Flip 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: 620
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Hallmark Funding.
Loan Example 1
Lawrence finds a townhouse in Miami, FL to renovate and resell. Since he does not have enough cash available to buy the $210,000 project outright, he decides to take out a fix-and-flip loan from Hallmark Funding. The lender agrees to issue a note with a 50% loan to value (LTV) so they will loan $105,000 on the project. The parameters of the deal also stipulate a five percent origination fee which will be paid at the closing and a 12 month, interest only note with a 12% rate of interest.
Therefore, the borrower will need to contribute a $105,000 down payment in addition to paying a $5,250 origination fee. Once the deal closes, he will need to pay Hallmark Funding $1,050 in monthly interest payments, or 12% times $105,000 divided by 12 months in the year. If Lawrence sells the house for $315,000 after 12 months, he would then earn a total profit of $87,150 after deducting the principle of $105,000, the cash contributed at closing of $105,000, the origination points of $5,250, and the aggregate interest payments of $12,600. This gross profit does not account for remodeling costs.
Loan Example 2
Meredith takes a fix and flip loan from Hallmark Funding in order to rehab a townhome to resell in Miami, FL. The loan has the following terms:
a) A $350,000 sales price, b) a 70% loan to value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 3% origination fee.
Meredith intends to list the property at the end of the term for $507,500. If she accomplishes her goal, the final numbers would be the following:
$507,500 sales price
- $245,000 loan principle (70% LTV)
- $105,000 down payment (30% on 70% LTV)
- $7,350 origination points (3% of the $245,000 principle amount)
- $26,950 interest payments (12 months x 11% interest)
= $123,200 gross profit (does not include taxes or rehab costs)
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