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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Oct. 31

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Mortgage Banking Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $1,350,000 for the development of a mortgage banking firm while showcasing the expected financials and operations over the next three years. Mortgage Banking Firm, Inc. (“the Company”) is a New York based corporation that will provide residential and commercial mortgages to customers in its targeted market. The Company was founded in 2009 by John Doe.

1.1 Products and Services

The primary revenue stream for the Mortgage Banking Firm will come from the closing of loans for residences and commercial properties. The Company will use its warehouse line of credit in order to fund these loans, which will be immediately resold to secondary investors. The Company will earn fees from both the sale of the loan and fees charged to borrowers. The Company’s secondary income stream will come from the interest generated on held loans until they are sold to secondary and third party inventors. The third section of the business plan will further describe the services offered by the Mortgage Banking Firm.

1.2 The Financing

Mr. Doe is seeking to raise $1,350,000 as a working capital line of credit, which will be primarily secured by the loans closed by the business. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year credit line with a 5% fixed interest rate.

1.3 Mission Statement

The Mortgage Banking Firm’s mission is to become the recognized leader in its targeted market for mortgage services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the mortgage industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. As the real estate market returns to normal conditions, the Mortgage Banking Firm will be an excellent position to capture a significant portion of its targeted market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Mortgage Banking Firm, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Mortgage Banking Firm requires $1.35 million of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Mortgage Banking Firm, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Mortgage Banking Firm. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings

3.0 Products and Services

The business of the Company is to assist homebuyers and investors in the acquisition and financing of real estate assets. These services will allow investors and homebuyers access to the capital markets. To some extent, this business will have a more erratic revenue stream as this business is dependent on deal flow and not guaranteed payments by debtors or tenants. The Company will operate an affinity mortgage banking facility (in association with its associated lenders) that will include a warehouse line of credit for financing transactions. This will be in addition to the $1.35 million of capital sought in this business plan. Mr. Doe expects that each financing deal made by the Company will yield approximately 5.2% of the face value of any transaction. The risks associated with this business are low as the Company does not plan on holding long term debt instruments unless the credit quality of the mortgagee is excellent. Most loans that are made by the Company will be immediately sold to investors in the secondary market. Revenue from these operations are received from both the debtor and the investor that purchases the loan. In a typical transaction, the debtor will pay 2-3% of the loan amount to the Company. Additionally, a markup of 2-3% is applied to the loan when it is sold to an investor. The holding period of these loans is very short, with most loans packaged a sold to investors within a three to six week period.





4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the mortgage industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period.

4.2 Industry Analysis

The market for real estate is one of the largest economic markets in the world. In the United States, the market for mortgages is the largest consumer and commercial finance market. For most people, a purchase of real estate (for both primary residence or investment purposes) is the largest financial transactions that they will ever conduct. Any standing structure has monetary value and can be used as an investment. Offices and homes are a necessity for all people and businesses. The overall market for real estate will continue to grow as the population continues to grow despite the current economic conditions. Additionally, there has been a shift in taste among Americans such that people now desire to have more than one home. While this concept has been a dream among many people, the ability for a middle income family to purchase a second home has become a reality with the change in how lending works. However, recent changes in the credit market, namely the sub prime mortgage meltdown, have resulted in difficulty for middle and upper middle income borrowers to refinance and acquire second mortgages. As such, the business may have issues with top line income generation at the onset of operations.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

There is a tremendous amount of competition among lending companies to acquire, finance, and sell mortgages. However, there are not many mortgage banking firms that specialize solely on small and medium sized real estate transactions. Mr. Doe feels that the Mortgage Banking Firm can use its lending and advisory service for each client so that they receive more than just the financing they need. Management will seek to essentially partner with clients in their real estate endeavors, rather than just provide a one time financing. By allowing clients services beyond traditional lending, Mr. Doe hopes to ensure that the will have repeat business from previous clients.

5.0 Marketing Plan

The Mortgage Banking Firm intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Mortgage Banking Firm.

5.1 Marketing Objectives

  • • Develop an online presence by acquiring accounts for major online real estate portals.

  • • Establish relationships with real estate brokers and agents within the targeted market.


5.2 Marketing Strategies

Mortgage marketing will be the most difficult portion of the marketing strategy. This is because one of the essential elements to reaching this audience is that the Company must build a brand affinity with the customer. This task will be accomplished through the business’s broad marketing campaign throughout its targeted market. The Mortgage Banking Firm will also use an internet based strategy. This is very important as many people seeking mortgages use the Internet to conduct their preliminary searches. Mr. Doe will register the Mortgage Banking Firm and its agents with these online portals so that potential buyers can easily reach the business. The Company will also develop its own online website showcasing current interest rates, the Management Team, and the mortgage banking services offered by the business. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the mortgage services that the Company is selling.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • Mortgage Banking Firm, Inc. will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $1.35 million of debt funds to develop the business. An additional affinity line of credit may be sought to further fuel loan closings.

  • • The credit line will have a 10 year term and a 5% fixed interest rate.

7.2 Sensitivity Analysis

The Company’s revenues can change depending on the general economic climate of the real estate industry. In times of economic recession, the Mortgage Banking Firm may have issues with its top line income as fewer sales will be made.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis


7.7 Balance Sheet


7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis