A total of 50 results for new construction hard money lenders were found in Pomona, CA. The median amount for loans in this city is $298,864. Interest rates on hard money loans issued to Pomona borrowers average about 9.8%. The mean loan issued in this city is 17 months in length. The average points charged for loans is 3.5%. The median LTV offered for loans in Pomona is 73%.
Brett is a real estate investor in Pomona, CA. He decides to purchase a lot and construct a new house. The construction costs will be about $250,000 and the land is listed for $270,000. He gets a construction loan from Flippers Finance Corporation with the following stipulations: 1) a 6 month note at 13% interest, 2) interest-only payments made every month, 3) 4 origination points at closing by the borrower, and 4) a 50% loan to value (LTV) on the lot and the construction costs. Brett will receive the construction costs in draws and there will not be a pre-payment penalty if he repays the loan prior to the expiration. Given this deal scenario, Brett will need to fund the following: 1) $260,000 cash down (based on the 50% LTV), 2) a $10,400 origination charge ($260,000 loan principle x 4%), and 3) $2,817 monthly interest payments. If Brett sells the house for $670,000 he will pocket a gross profit of $122,700 after re-paying the principle amount and deducting the origination expense and cumulative interest payments.