About Lafayette Financial
Lafayette Financial is an Alamo, CA based hard money lender providing loans in Alamo, San Francisco, Oakland, and San Jose. Their lending focus is primarily on fix-and-flip hard money loans. They issue loan amounts ranging from $30,000 to $500,000 with a maximum LTV of 70%, rates ranging between 10% and 13%, and terms between 1 year and 5 years. They do not require borrowers to have a minimum FICO score to receive a loan. The focus of their loans is on single family homes and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Alamo, San Francisco, Oakland, San Jose
Licenses: NMLS #277125, DRE #01101525
Lending Guidelines for Lafayette Financial
Below are the general loan guidelines published on the Lafayette Financial website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: $30,000 - $500,000
Available Rates: 10% - 13%
Typical Terms: 12 months - 60 months
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: YES
Minimum FICO Score: NO
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Lafayette Financial.
Loan Example 1
Marcia takes a fix-and-flip loan from Lafayette Financial in order to remodel a townhome to flip in Alamo, CA. The sales price of the house is $310,000. The loan-to-value (LTV) on the deal is 55%. This means Marcia will have to bring 45% of the purchase price to closing and the principle will be $170,500 on the note. The parameters of the note also include a five point origination fee which is to be paid at closing and a 12 month, interest only note with a 11% interest rate.
Marcia will have to contribute $139,500 at the closing (45% on the 55% LTV), plus she will need to pay the $8,525 origination fee. The monthly interest-only payments will then be $1,563 to Lafayette Financial. If Marcia meets her goal of a $372,000 sales price when the loan term expires, she would pocket a total profit of $34,720 after repaying the principle amount and subtracting the cash she paid at closing, the origination fee, and the total interest payments.
Loan Example 2
Lafayette Financial makes a loan to Harvey for a renovation project in Alamo, CA. The deal includes the following:
a) A $310,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 2% origination fee.
If Harvey accomplishes his goal of a $418,500 sales price, the numbers of the deal would be the following:
$418,500 sales price
- $232,500 loan principle (75% LTV)
- $77,500 cash paid at closing (25% on 75% LTV)
- $4,650 origination points (2% of the $232,500 principle amount)
- $9,300 total interest paid (6 months x 8% interest)
= $94,550 gross profit (does not include taxes or rehab costs)
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