Loan Terms & Disclosures
New Century Mortgages LLC | NMLS #1740818
Effective March 2026New Century Mortgages LLC (“NCM,” “we,” “our”) is committed to transparency in all lending activities. This document provides a comprehensive overview of our loan products, associated terms, fees, and borrower obligations. All loan products described herein are for business-purpose investment property financing only. NCM does not originate consumer-purpose residential mortgage loans.
1. Loan Products & Terms Overview
The following table summarizes the key terms for each of our six investment loan products:
| Term | DSCR | Bridge / Fix & Flip | New Construction | Hard Money | Portfolio | Commercial |
|---|---|---|---|---|---|---|
| Loan Amount | $150K–$5M | $75K–$3M | $150K–$5M | $75K–$3M | $500K–$10M | $250K–$15M |
| APR Range* | 7.25%–10.99% | 9.50%–13.99% | 10.50%–14.99% | 11.00%–15.99% | 6.75%–10.49% | 7.75%–12.99% |
| Loan Term | 30-yr fixed or ARM | 6–24 months | 12–24 months | 6–36 months | 5, 7, or 30-yr | 5–30 years |
| Max LTV / LTC | Up to 80% | Up to 90% LTC | Up to 85% LTC | Up to 70% LTV | Up to 75% LTV | Up to 75% LTV |
| Min. Credit Score | 660 | 620 | 660 | None req. | 660 | 660 |
| Payment Frequency | Monthly | Monthly (I/O) | Monthly (I/O) | Monthly (I/O) | Monthly | Monthly |
| Amortization | 30-yr amort. or I/O | Interest-only | Interest-only | Interest-only | 30-yr amort. or I/O | 25–30 yr amort. |
| Prepayment Penalty | 3-2-1 or 5-4-3-2-1 | None | None | None | 3-2-1 step-down | Varies |
* APR (Annual Percentage Rate) includes the base interest rate plus applicable origination fees and costs amortized over the loan term. Your actual APR will be disclosed in your Loan Estimate and Closing Disclosure prior to closing. APR may differ from the advertised rate due to fees, points, and other loan-specific factors.
2. Detailed Product Terms
DSCR Loans (Debt Service Coverage Ratio)
Qualify based on the rental income of your investment property rather than personal income. No W-2s, tax returns, or employment verification required.
Bridge Loans (Fix & Flip)
Short-term financing designed for investors acquiring and renovating properties for resale. Interest-only payments with full principal due at maturity.
New Construction (Ground-Up)
Financing for ground-up construction projects, including build-to-rent and build-to-sell strategies for experienced builders and developers.
Hard Money / Asset-Based Loans
Loans underwritten primarily on the value of the collateral property rather than borrower creditworthiness. Designed for time-sensitive acquisitions and deals requiring quick capital.
Portfolio Loans
Consolidate five or more investment properties into a single loan with one monthly payment. Designed for investors managing multiple rental properties.
Commercial Real Estate
Financing for larger commercial properties including multifamily (5+ units), mixed-use, office, retail, and industrial. Available for stabilized properties and value-add projects.
3. Fee Schedule
The following fees may apply to your loan. Not all fees apply to every loan product. Your specific fees will be disclosed in your Loan Estimate prior to closing.
| Fee Type | Details |
|---|---|
| Origination Fee | 1.0% – 3.0% of loan amount (varies by product and deal complexity) |
| Processing / Underwriting Fee | $995 – $1,995 per loan |
| Appraisal Fee | $950 (residential) / $3,750 (commercial) — paid by borrower at application |
| Document Preparation Fee | $495 – $795 |
| Credit Report Fee | $35 – $75 per borrower |
| Flood Certification Fee | $12 – $25 |
| Title & Escrow Fees | Third-party charges; vary by state and loan amount |
| Recording Fees | County-specific; paid at closing |
| Wire / Funding Fee | $50 – $75 per wire |
| Draw Inspection Fee (Construction / Bridge) | $150 – $250 per draw inspection |
| Extension Fee (Short-Term Loans) | 0.50% – 1.00% of outstanding balance per extension period |
| Late Payment Fee | 5% of the monthly payment amount, assessed after a 10-day grace period |
| Returned Payment (NSF) Fee | $35 per occurrence |
| Prepayment Penalty (where applicable) | See Prepayment Terms by product above; bridge/hard money loans typically have no prepay penalty |
All fees are disclosed in detail on the Loan Estimate and Closing Disclosure provided to each borrower prior to closing. Third-party fees (appraisal, title, escrow, recording) are not controlled by NCM and may vary.
4. Example Repayment Schedules
DSCR Loan — 30-Year Fixed Example
Origination Fee (2 pts): $9,000 | Processing: $1,495 | Appraisal: $950
Est. Closing Costs: ~$14,550 | APR: ~7.35%
Total Interest Over Life of Loan: ~$628,054 | Total Repaid: ~$1,078,054
| Month | Payment | Principal | Interest |
|---|---|---|---|
| 1 | $2,994.04 | $369.04 | $2,625.00 |
| 2 | $2,994.04 | $371.19 | $2,622.85 |
| 3 | $2,994.04 | $373.36 | $2,620.68 |
| 12 | $2,994.04 | $393.12 | $2,600.92 |
| 60 | $2,994.04 | $472.28 | $2,521.76 |
| 120 | $2,994.04 | $580.08 | $2,413.96 |
| 360 | $2,994.04 | $2,976.66 | $17.38 |
Bridge Loan — 12-Month Interest-Only Example
Origination Fee (2 pts): $6,000 | Processing: $1,495 | Appraisal: $950
Total Interest Paid: $28,500 | Balloon Payment at Maturity: $300,000
| Month | Payment | Type | Balance |
|---|---|---|---|
| 1–11 | $2,375.00/mo | Interest-only | $300,000.00 |
| 12 (Maturity) | $302,375.00 | Full principal + final interest | $0.00 |
Hard Money Loan — 12-Month Interest-Only Example
Origination Fee (2.5 pts): $6,250 | Processing: $1,495 | Appraisal: $950
Total Interest Paid: $27,500 | Balloon Payment: $250,000
Total Cost of Borrowing (fees + interest): ~$36,195
5. Late Payment Policy
Grace Period
All monthly payments are due on the 1st of each month. A grace period of 10 calendar days applies. Payments received on or before the 10th of the month will not incur a late fee.
Late Fee
If payment is not received by the 11th of the month, a late charge of 5% of the overdue monthly payment amount will be assessed. For example, on a $3,000 monthly payment, the late fee would be $150.
Returned Payment (NSF)
If a payment is returned due to insufficient funds, a $35 NSF fee will be charged in addition to any applicable late fee.
Default & Acceleration
If a payment remains unpaid for 30 days or more past the due date, the loan may be considered in default. In the event of default, NCM reserves the right to:
- Report the delinquency to credit bureaus (where applicable)
- Assess default interest at a rate up to 5% above the contract rate (as permitted by applicable law)
- Accelerate the full outstanding balance, making the entire loan amount immediately due and payable
- Initiate foreclosure or other legal remedies to recover the collateral property
Cure Period
Borrowers will receive written notice of default and will have 30 calendar days from the date of the notice to cure the default by bringing the account current, including payment of all outstanding fees and charges.
Loss Mitigation
NCM encourages borrowers experiencing financial difficulty to contact our servicing department as early as possible. We may offer workout solutions including payment plans, loan modifications, or forbearance on a case-by-case basis. Contact: [email protected] or 855-8GOLEND.
6. Prepayment Terms
No Penalty Bridge Loans, Hard Money, and Construction Loans
No prepayment penalty. You may pay off the loan in full at any time without incurring additional charges.
DSCR Loans and Portfolio Loans
Prepayment penalties apply during the initial years of the loan and are structured as a step-down:
- 3-2-1 Step-Down: 3% of unpaid principal if paid off in Year 1; 2% in Year 2; 1% in Year 3; no penalty after Year 3
- 5-4-3-2-1 Step-Down (if selected for lower rate): 5% in Year 1, decreasing by 1% per year; no penalty after Year 5
Commercial Real Estate Loans
Prepayment terms vary by loan structure and may include yield maintenance, defeasance, or a step-down schedule. Specific prepayment terms will be detailed in your loan commitment letter and note.
Partial prepayments: Partial principal payments may be permitted on certain products. Check your loan agreement for specific terms regarding partial prepayment.
7. Loan Renewal & Extension Policy
Short-Term Loans (Bridge, Hard Money, Construction)
Loan extensions may be available upon request prior to maturity, subject to the following conditions:
- The loan must be current with no history of late payments
- An extension fee of 0.50% – 1.00% of the outstanding principal balance will apply per extension period
- Extensions are typically granted in 3-month increments, with a maximum of two extensions (6 additional months total)
- The property must continue to meet collateral requirements (updated valuation may be required)
- Extensions are not guaranteed and are subject to NCM approval
Long-Term Loans (DSCR, Portfolio, Commercial)
These loans do not have extension provisions. At the end of a balloon term (5-year, 7-year, or 10-year), the outstanding balance is due in full. Borrowers may refinance into a new loan product with NCM or another lender. NCM does not automatically renew or roll over long-term loans.
8. Additional Disclosures
Business-Purpose Loans Only
All loans originated by New Century Mortgages LLC are for business or investment purposes only. NCM does not originate consumer-purpose residential mortgage loans subject to TILA/RESPA Integrated Disclosure (TRID) rules. All borrowers must certify that the loan proceeds will be used for business or investment purposes.
No Guarantee of Approval
Submission of an application does not guarantee loan approval. All applications are subject to underwriting review, property valuation, and verification of information provided.
Rate Lock
Interest rates may be locked at the time of commitment for a specified period (typically 30–45 days). Rate lock extensions may be available for an additional fee.
Third-Party Costs
Borrowers are responsible for third-party costs including but not limited to: appraisal, title insurance, escrow, survey, environmental reports, legal fees, and recording fees. These costs are not controlled by NCM and may vary.
Insurance Requirements
Borrowers must maintain hazard/property insurance and, where applicable, flood insurance throughout the life of the loan. NCM must be listed as mortgagee/loss payee on all policies.
Escrow / Impound Accounts
NCM may require escrow accounts for property taxes and insurance on certain loan products. If required, monthly escrow deposits will be collected in addition to the principal and interest payment.
Disclaimer: This document is provided for informational purposes and does not constitute a commitment to lend. All loan products are subject to credit approval, property evaluation, and other underwriting criteria. Terms, rates, and fees described herein are subject to change without notice.