About Northwind Financial
Headquartered in Grand Rapids, MI, Northwind Financial is a private lender providing funding all throughout the country. Their lending focus is primarily on private commercial loans. They provide rates ranging between 3% and 12%, loan amounts ranging from $500,000 to $500,000,000 with a maximum LTV of 75%, and terms between 12 months and 36 months. They provide loans on numerous property types, including multi-family units, apartments, office buildings, retail units, hotels/motels, storage facilities, senior living communities, mixed use, warehouse spaces, industrial buildings, medical buildings, undeveloped land, and churches.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land, Church
Areas Served: National
Lending Guidelines for Northwind Financial
Below are the general loan guidelines published on the Northwind Financial website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: $500,000 - $500,000,000
Available Rates: 3% - 12%
Typical Terms: 12 months - 36 months
Points Charged: 3% - 5%
Max Loan-to-Value (LTV): 75%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
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 Northwind Financial.
Loan Example 1
Lee is an entrepreneur in Santa Rosa, CA. He wants to purchase a new office space for his company but he is not able to get a standard loan from his bank because of his subpar credit rating. He turns to Northwind Financial for a commercial hard money loan so he can fund the purchase. Because the lender and borrower agree on a 75% loan to value (LTV), Lee will bring $72,500 toward the closing and the principle will be $217,500 since the price of the building is $290,000. The deal also dictates a 12 month term, a 13% interest rate, interest only payments made monthly with a final payment when the note expires (without a pre-payment penalty), and a 5 point origination fee. Lee may eliminate the note at any time if he pays off the $217,500 of principle, but he will be required to pay $2,356 /month interest payments ($217,500 principle amount x 13% interest rate / 12 months per year) in the interim, or up to the point the loan expires. Since there is not a pre-payment penalty, the only additional expense he will have to pay is the $10,875 origination cost which he will pay when the loan closes.
Loan Example 2
Northwind Financial issues a private money loan to Ian for a rehab project in Chicago, IL. The loan includes the following:
a) A $300,000 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.
After the rehab project is finished, if Ian sells the property for $375,000, the outcome would be as follows:
$375,000 sales price
- $225,000 loan principle (75% LTV)
- $75,000 cash paid at closing (25% on 75% LTV)
- $4,500 origination points (2% of the $225,000 principle)
- $9,000 interest payments (6 months x 8% interest)
= $61,500 total profit (does not include taxes or renovation costs)
by PutnamRE 06/09/2018
I recently had to finance a manufactured home park out of bankruptcy. Most lenders just laughed, but Northwind was able to creatively structure the transaction, get it approved by the court, and get it done. They kept us informed about the process along the way, and the staff was experienced and helpful. Would highly recommend them for commercial financing.I recently had to finance a manufactured home park out of bankruptcy. Most lenders just laughed, but Northwind was able to creatively structure the transaction, get it approved by the court, and get it done. They kept us informed about the process along the way, and the staff was experienced and helpful. Would highly recommend them for commercial financing.