Interview Summary
Stormfield Capital offers Residential Transition Loans (RTL) with flexible underwriting, competitive pricing, and borrower-friendly structuring—particularly suited for real estate investors seeking short-term bridge financing.
Current Pricing Structure (2026 Market Context):
- Starting Rates: As low as 8.99% + 1 point
Typical Market Rate: ~10.5% interest-only (IO) on a 12-month bridge loan
- Fees: ~1.5 points total, commonly split as:
- 0.75 points at origination
- 0.75 points as an exit fee
This split-fee structure is a distinguishing feature. Instead of charging full points upfront, Stormfield defers part of the cost—improving borrower cash flow and increasing day-one leverage.
Leverage & Structure:
- Entry pricing (8.99%) typically corresponds to ~60% Loan-to-After-Repair Value (LTARV)
- Borrowers can increase leverage (“buy up”) at higher pricing tiers
- Loans are balance sheet loans (not securitized), enabling more flexible underwriting decisions
Key Takeaways
- Flexible Pricing Range:
- Most deals land around 10.5% IO with ~1.5 points, though top-tier borrowers can access sub-9% rates.
- Unique Exit Fee Model:
- Splitting fees between entry and exit:
- Reduces upfront capital requirements
- Improves leverage efficiency
- Aligns lender and borrower incentives
- Credit Score = Pricing & Leverage Driver (Not a Hard Cutoff):
- No strict minimum FICO requirement
- Lower credit borrowers may still qualify with strong asset backing
- Example: A borrower with ~550 FICO can still secure funding if equity is strong
- Asset-Based Lending Flexibility:
- Strong collateral (low LTV deals) can override weaker borrower profiles
- Particularly useful for cash-out refinance scenarios
- Liquidity Requirements (Flexible Interpretation):
- Stormfield evaluates liquidity holistically, including:
- Cash and marketable securities
- Retirement accounts (401k, IRA)
- Equity in other investment properties (a major differentiator)
- Experience Matters:
- Best pricing is reserved for:
- Experienced investors
- Strong credit profiles
- Proven execution in target markets
FAQ’s
1. What is the typical interest rate for a Stormfield bridge loan?
- Most borrowers receive around 10.5% interest-only for a 12-month term, though rates can go as low as 8.99% for highly qualified borrowers.
2. How are fees structured?
- Stormfield typically charges ~1.5 points total, split between:
- Origination fee (front-end)
- Exit fee (back-end)
- This structure reduces upfront costs and improves leverage.
3. Is there a minimum credit score requirement?
- No strict minimum. Credit impacts pricing and leverage, but loans can still be approved with lower FICO scores if the deal has strong asset coverage.
4. Can I qualify with bad credit?
- Yes—especially in low loan-to-value scenarios (e.g., large equity positions). Each deal is reviewed case-by-case.
5. What are the liquidity requirements?
- Stormfield requires liquidity but evaluates it flexibly, including:
- Cash
- Securities
- Retirement accounts
- Equity in other real estate holdings
6. What loan-to-value (LTV) can I expect?
- Base pricing aligns with ~60% LTARV
- Higher leverage is available at higher rates
7. Are these loans securitized?
- No. Stormfield lends from its own balance sheet, allowing for:
- More flexible underwriting
- Case-by-case approvals
- Creative structuring options
8. Who are these loans best suited for?
- Fix-and-flip investors
- Bridge loan borrowers
- Real estate investors needing short-term capital
- Borrowers with strong deals but imperfect credit
Final Takeaway
Stormfield Capital differentiates itself in the bridge lending space through flexible underwriting, innovative fee structuring, and asset-focused decision-making. By avoiding rigid securitization guidelines, they can approve deals that traditional lenders might decline—especially where strong collateral outweighs borrower imperfections. For real estate investors, this means:
- Greater access to capital
- Improved leverage through deferred fees
- More nuanced qualification criteria
In a market where speed and flexibility are critical, Stormfield’s model is particularly attractive for borrowers who value customized lending solutions over one-size-fits-all programs.
This is a clip from Episode 21 of the Private Lending Insights podcast, released in October 2025: Inside Stormfield Capital: Real Estate Bridge Lending Strategy & Market Outlook.
