Sunset Mortgage

About Sunset Mortgage

Sunset Mortgage is a hard money lender in Mission Viejo, CA offering loans in California. They provide lending solutions for a variety of needs and situations, including commercial hard money loans and investment property loans. Their lending guidelines are flexible, including rates ranging between 8% and 11%. The focus of their lending is on single family and multi family residences.

Loan Types Offered: Investment Property Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family

Areas Served: CA

Lending Guidelines for Sunset Mortgage

Below are the general loan guidelines published on the Sunset Mortgage 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 Sunset Mortgage.

Loan Example 1

Latasha runs a small business in Los Angeles, CA and decides to purchase a new office building to run her operations. Since she is not able to secure a conforming loan from a bank, she turns to Sunset Mortgage for a commercial private money loan. The new building costs $190,000. Latasha will have to put 35% down, or $66,500, because the lender will fund only 65% of the purchase (the loan to value or "LTV"). Accordingly, the principle amount on the deal is $123,500. The lender additionally stipulates the following terms to the transaction: 1) a 10% interest rate, 2) a 6 month length with interest-only payments monthly, 3) an origination fee of 5 points paid by Latasha when the deal closes, and 4) no fees for pre-payment. Latasha will need to pay an origination fee of $6,175 and will then begin making the interest payments in the amount of $1,029 ($123,500 principle amount x 10% interest rate / 12 months). She can re-pay the note early if she chooses because there is no pre-payment penalty but she is responsible for the full principle amount whenever she closes the loan.

Loan Example 2

Ruth locates a townhouse in Los Angeles, CA to remodel and re-sell. Because she does not have enough cash to buy the property outright, she takes a hard money loan from Sunset Mortgage with the following parameters:

$240,000 purchase price
75% loan to value (LTV)
18 month term
14% interest rate
4% origination fee

Ruth intends to list the project at the end of the term for $324,000. If she succeeds, the outcome will be the following:

$324,000 sales price
- $180,000 principle (75% LTV)
- $60,000 cash paid at closing (25% on 75% LTV)
- $7,200 origination fee (4% of the $180,000 principle amount)
- $37,800 interest payments (18 months x 14% interest)
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= $39,000 total profit (doesn't include taxes or renovation costs)

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