HMP FINANCING TERM SHEET

HMP LOAN TERMS

HMP charges 12.99% & 3 points (min $4,ooo).

Payments are interest only for up to 9 months with a balloon payment.

HMP has a 3-month minimum interest pre-payment penalty.

HMP LOAN PARAMETERS

HMP will bring up to 80% of the purchase price

HMP will bring 100% of the construction budget.

HMP’s max loan to value is 65% of the After Repair Value (ARV)

WHAT YOU NEED TO KNOW

When you bring HMP a deal, you’ll need to know these 3 things:

  1. Purchase price or offer price you want to make
  2. The construction budget
  3. What the ARV will be after you complete the construction.

MONEY YOU’LL BRING TO CLOSE

Also know that you’ll most likely be bringing 25-30% of the money needed to complete the project. This will cover:

  1. Your 20% down payment*
  2. Your lender points
  3. Your title company fees and closing costs

*100% financing available on low LTV refinances.

CONSTRUCTION LOANS

Construction funds will be held in escrow and will begin accruing interest at 12.99% from the closing date of the loan. Furthermore:
 
 
1. You will need reserves to begin the construction process.
2. At the time of valuation inspection you need an itemized construction budget on hand to review with the HMP valuation specialist.
3. The construction draw will be paid after the work has been completed and inspected by the HMP inspector.
4. Construction draw schedules will be determined by the HMP valuation.