Finance of America Commercial Reviews
Learn more about Finance of America Commercial, a hard money lender. Includes information on pricing, features, and frequently asked questions.
Updated on November 18th, 2019
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Finance of America Commercial is a hard money lender that provides rental term loans, fix and flip loans, lines of credit, and new construction loans to residential real estate investors. Finance of America Commercial is part of the Finance of America family and a Blackstone Group portfolio company.
Fees:
Finance of America Commercial asks for an application fee, closing costs, and some other fees when offering loans, however, they do not provide this information on their website. You can contact the company for information on fees by calling them or filling out the Get Started form on their website.
Rental Loan Details:
Loan Type | Interest Rate | Loan Amount | Term |
|---|---|---|---|
Single Rental Loan | 6.5% - 9% | $75,000 - $1,500,000 | 30 years, partial interest-only option available |
Portfolio Rental Loan | 5.5% - 7.5% | $700,000 + | 5 or 10 years with balloon due at the end of the term, option to amortize up to 30 years |
Fix and Flip Loan Details:
Interest Rate | 6.75% and up |
Loan Amount | $50,000 - $2,000,000 (max of $500,000 for inexperienced investors) |
Term | 12 months, with options for extensions |
Maximum Loan-To-Value (LTV) | Up to 75% of After Repair Value (ARV) |
Maximum Loan to Cost (LTC) | 90% |
Rehab/construction financing | Funding up to 100% |
New Construction Loan Details:
Interest Rate | 6.75% and up |
Loan Amount | $100,000 - $2,000,000 ($500,000 max for inexperienced investor) |
Term | 12 months, with options for extensions |
Maximum LTV | Up to 75% of ARV |
Maximum LTC | 90% |
Rehab/construction financing | Funding up to 100% construction budget |
Review:
Pros: Wide variety of loans on a range of properties.
Cons: Cap on loan amounts for inexperienced investors. Financing on multifamily properties only up to 20 units.
Bottomline: Finance of America Commercial offers competitive rates and loans nationwide.
Key Information:
Founder | John Beacham |
Founded | 2013 |
Headquarters | Charlotte, North Carolina |
Number of Employees | 51 - 200 |
Contact number | 1 (800) 227-8107 |
Website |
FAQs:
What kind of properties does Finance of America Commercial loan on?
- Single-family residences.
- 2 - 4 family units.
- Condos.
- Townhomes.
- Multifamily 5 - 20 units.
- Mixed-use properties.
- Properties for rehab.
- Land for new constructions.
Does Finance of America Commercial finance land acquisitions?
Yes. Finance of America Commercial will finance up to 75% of the land value for acquisition for the purpose of new construction.
Can I get a loan from Finance of America Commercial if I have a bad credit rating?
Finance of America Commercial requires a credit score of 620 and above to approve a loan.