Summit Capital Funding

About Summit Capital Funding

Summit Capital Funding is private money lender headquartered in Flemington, NJ. They offer funding all across the country. They offer loans for a variety of situations and needs, including commercial hard money loans and short term loans. They provide loans on most property types, including multi family, apartment buildings, office buildings, retail units, hotels, storage buildings, senior living facilities, mixed use buildings, warehouse buildings, industrial facilities, and medical facilities.

Loan Types Offered: Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical

Areas Served: National

Lending Guidelines for Summit Capital Funding

Below are the general loan guidelines published on the Summit Capital Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Summit Capital Funding.

Loan Example 1

To facilitate his small business, Clinton must buy a new commercial building. After being denied a conventional mortgage loan from his bank, he applies for a commercial hard money loan from Summit Capital Funding. The property will cost $330,000. Since there is a 70% loan-to-value (LTV) stipulated by the lender, the loan principle amount will be $231,000. The additional $99,000 will be be paid by the borrower. The loan also specifies a 6 month term, a 12% interest rate, interest-only payments paid each month with a final payment at the end of the note (with no pre-payment penalty), and a 2 point origination charge. Clinton may eliminate the note at any time by paying back the $231,000 of principle, but he will be required to make $2,310 /month interest payments ($231,000 principle x 12% interest / 12 months) in the interim, or until the loan expires. Because there isn't a pre-payment penalty, the only other expense he would have to pay is the $4,620 origination cost which he will contribute when the deal closes.

Loan Example 2

Summit Capital Funding issues a private money bridge loan to Steven for a renovation project in Detroit, MI. The loan includes the following:

a) A $340,000 purchase price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 4% origination fee.

If Steven accomplishes his goal of a $493,000 sales price, the numbers of the project will be as follows:

$493,000 sales price
- $204,000 principle on note (60% LTV)
- $136,000 cash paid at closing (40% on 60% LTV)
- $8,160 origination points (4% of the $204,000 principle)
- $14,280 total interest paid (6 months x 14% interest)
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= $130,560 gross profit (does not include taxes or renovation costs)

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