Hard Money Loans

FlexiTerm Hard Money Loan

Tempo Funding provides hard money loans that are simple and cost effective for your borrowing needs.

Loan To Value	Initial Term	Points	Minimum Down Payment	Annual Rate	Loan Extensions
60%	3 Months	3.5	10%	12.5%	3
65%	3 Months	4	10%	15%	3
70%	3 Months	5	10%	18%	3

We lend up to $300,000.00 per property for FlexiTerm Loans. The maximum loan term Tempo Funding allows is 6 months. We currently do not offer loan programs that exceed either this loan amount limit and term period.

How it works?

The FlexiTerm Loan has the benefit of being able to meet your short term borrowing needs in a very economical way. The way it works is as follows:

Option 1:

If it turns out that you need a loan for more than the initial 3 month term, then you have at your disposal 3 monthly extensions that you can request. For each of those monthly extensions, you simply pay a 1 point forbearance fee as well as 1 month of interest payment on the principal balance of the loan. The extension/forbearance fee and 30 days interest must be paid for each 30 day extension.

Option 2:

Now here’s the real power of the FlexiTerm Loan, if you believe ahead of time that you may need more than the initial 3 month month term of the loan, then you can simply pre-pay 0.75 points per month extension prior at the time of closing for up to 3 approved extension periods (no interest payment due on loan inception). At the end of the term of the loan you pay back the loan plus the interest due.

Here is an example to help illustrate how it works:

Let’s Say you have a property with the following parameters:

Purchase Price: $100,000.00

Loan From Tempo: $60,000.00

Term Needed: 5 Months

	Option 1 (As Needed)	Option 2 (Up Front)
Initial Points	3.5%	3.5%
2 Month Extension Fee	2% (1% per month)	1.5% (0.75% per month)
Total Point Charge For Loan	5.5%	5%
Interest Due At Month 4 & 5	$625/month	None – Due at end of loan term

Loan origination points are due at loan commencement, however we may allow points to be built into the loan, which impacts LTV and the charged rate/points. All interest only payments are due on a monthly basis. As part of the closing costs, upon loan funding a $500 Processing Fee and $250 Document Preparation Fee will be assessed and payed at the closing. A lender Title Policy, Hazard Insurance and Escrow/Closing fees must be paid by borrower. At application an evaluation fee of $550 must be paid upon initial deal review and will include the appraisal and deal review by an underwriter.

At the end of the initial loan term the borrower may have the option to choose to request to extend the loan term for up to two 30 day periods. This is done by the lender approving that all terms of the Note and Trust Deed have been met and the borrower paying 1% of the loan balance in an extension fee for a 30 day delay. In addition to the extension fee we require a payment equal to 30 days interest. The extension/forbearance fee and 30 days interest must be paid for each 30 day extension.