About Richmond Mortgage Inc
Richmond Mortgage Inc is hard money lender headquartered in Richmond, VA. They offer funding throughout the following areas: Washington DC, Richmond, Roanoke, Fredericksburg, Virginia Beach, Norfolk, Newport News, Elizabeth City, and Kill Devil Hills. Their lending focus is primarily on fix and flip loans. Their loan guidelines are flexible, including rates ranging between 8% and 16%, terms between 9 months and 1 year, and loan amounts starting at $50,000. The focus of their lending is for single family and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Washington DC, Richmond, Roanoke, Fredericksburg, Virginia Beach, Norfolk, Newport News, Elizabeth City, Kill Devil Hills
Lending Guidelines for Richmond Mortgage Inc
Below are the general loan guidelines published on the Richmond Mortgage Inc website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: $50,000 and up
Available Rates: 8% - 16%
Typical Terms: 9 months - 12 months
Points Charged: 2% - 10%
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: NO
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 Richmond Mortgage Inc.
Loan Example 1
Shauna closes on a $330,000 rehab project in Washington DC, DC, using a fix-and-flip loan from Richmond Mortgage Inc. The lender agrees to issue a loan with a 80% loan to value (LTV) so they will loan $264,000 on the house. The loan also includes these features: 1) a 18 month term, 2) a 11% interest-only note, and 3) a two percent origination charge.
In addition to paying the $5,280 origination fee, Shauna will also fund $66,000 of the purchase with her own cash, or 20% of the sales price. After the loan is closed and Shauna takes the project, she will begin making monthly payments of $2,420 to the lender ($264,000 principle x 11% / 12 months). At the expiration of the loan, she sells the renovated property for $396,000. After deducting the $43,560 in interest payments ($2,420 times 18 months), the $5,280 origination fee, the $264,000 principle amount on the loan, and the $66,000 she brought to the closing, she will earn a total profit of $17,160 ($396,000 sales price minus $378,840 in costs). This amount would be reduced by any renovation costs paid by Shauna .
Loan Example 2
Richard takes out a loan from Richmond Mortgage Inc so he can remodel a townhome to flip in Washington DC, DC. The loan has the following terms:
$280,000 purchase price
75% loan to value (LTV)
18 month term
13% interest rate
3% origination fee
Richard plans to list the project when the note expires for $336,000. If he achieves this goal, the deal numbers will be as follows:
$336,000 sales price
- $210,000 principle on note (75% LTV)
- $70,000 down payment (25% on 75% LTV)
- $6,300 origination points (3% of the $210,000 principle)
- $40,950 interest payments (18 months x 13% interest)
= $8,750 gross profit (does not include taxes or rehab costs)
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