Frequently Asked Questions

general

  • What states do you lend in?

    MoFin currently lends in Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin and Wyoming. If you have a question about another state, please email us.

  • Are you a direct lender?

    Yes, we use our capital to lend. At our discretion, we may sell your loan in the secondary market to institutional partners.

  • What types of loans do you offer?

    We offer loans against non-owner occupied investment properties. We offer short-term (12-24 month) bridge loans for fix and flips or rehab to hold deals, and 12-36 month bridge loans for commercial properties (light industrial, warehouses, and offices). We also provide long-term funding (30-year term), for residential rental properties of 1-4 units (we may consider 5-9 units on a case by case basis).

  • Do you offer refinance loans?

    Yes, we can do a rate/term or cash-out refinance on a 12-24 month or 30 year term.

  • Do you require a personal guaranty?

    Yes, all loans require a personal guaranty from any member owning at least 25% of the borrowing entity, with a minimum of 51% of the owners providing a guaranty. For 30-year loans, all owners of the borrowing entity must provide a personal guaranty.

Borrowers

  • What type of properties do you lend against?

    We lend against residential 1-4 units, townhomes, condos, 5+ unit multifamily, mixed-use and commercial real estate. For commercial real estate we lend against multifamily, office, light industrial and warehouses.

  • How much do I have to put down?

    This depends on the loan type you’re requesting and your loan scenario. For bridge loans it can range between 15% - 35% and for rental loans the range is 20% - 35%. Please visit the loan product specific page for more info but it’s best to contact a MoFin team member to go over your particular loan request.

  • What’s your minimum credit score?

    For bridge loans, it’s 650. For rental loans, it’s 660. If your score is below that, we may still be able to lend to you with compensating or mitigating factors present, like experience, a higher down-payment, liquidity, etc.

  • How quickly can you close?

    For bridge loans it’s 1-3 weeks and for rental loans it’s 30 days or less. Contact us if you need to close by a certain date and we’ll let you know if’ it’s possible on our end.

  • Do you require a full appraisal?

    For most deals, yes. In some circumstances we may be able to use a broker’s price opinion (BPO) or similar valuation product.

  • What are the costs associated with your loan?

    To begin the underwriting process, after your deal has been pre-qualified, we charge a $299 application fee. At closing we charge our origination fee, which ranges from 2%-3% of the loan balance. We do not charge any processing or junk fees.

  • Can I roll the closing costs and origination points into the loan?

    No, we currently do not have such a feature or term on any loan type.

  • Do you lend against mobile or manufactured homes?

    No, we do not.

  • Can I get a pre-qualification or proof of funds letter?

    Yes, after you submit your loan request to us, if the deal works we can send you a proof of funds or pre-qualification letter. To issue a pre-qualification, we will need to run your credit.

  • How do we get started?

    You can submit your loan request through our website, by email, or on the phone. If the terms we quote work for you, we’ll put together a Term Sheet that lays out everything for you. Once you have signed the term sheet and paid the application fee, we will begin the underwriting process.

  • What documents do you need for the loan?

    We don’t require much, but some things you can expect to have to provide are: a loan application (can be filled out online), your entity’s documents, a copy of your ID, most recent two months’ bank statements, proof of insurance (we’ll provide you guidance on what we require for insurance), a property experience form (provided by us), and your scope of work or rehab budget (if it’s a deal where you’re renovating).

  • What are your income requirements?

    We do not have any personal income requirements. Your employment status, income, and personal debt-to-income ratio do not play a role in our loans.

  • Do you offer extensions on loans?

    On bridge loans we may offer an extension if the loan is in good standing.

  • Will the loan show on my credit report?

    We only make business-purpose loans, and thus do not report to the credit agencies.

  • Do you lend to entities (like an LLC)?

    Yes, we lend to entities, including LLCs and corporations.

  • Is there a prepayment penalty?

    This will depend on your loan type and loan request. Generally, we do not have a prepayment penalty on 12-month bridge or fix & flip loans. Our 30-year loans have a 3-year prepayment penalty, which can be shortened or extended in exchange for an increase or decrease in the interest rate.

  • Do you allow for secondary financing?

    We do not allow for secondary financing on our loans.

  • What are your seasoning requirements?

    This varies based on the loan program; for bridge loans it’s 6 months and for 30 year loans it’s 6-12 months. It’s best to contact us for more info on recent purchases that you are looking to refinance.

Brokers

  • Do you work with brokers?

    Yes! Brokers can submit deals through our online application or email us the specifics of your deal, and we will get back to you with terms.

  • How do you compensate brokers?

    Brokers can charge an origination and/or processing fee(s) at closing. This fee will be disclosed to the borrower upfront in the Term Sheet.

Investors

Other

Have any other questions?

Call Us:

917-913-7349

Email Us:

info@mofinloans.com