Am I Being Scammed? Origination Fee

[Ayodeji Kuponiyi]

I’m looking for a loan to purchase an 5 Unit apartment and came across a lender. He told me I have to pay a $3,600 origination fee for for $180K. 

I told the lender from Metro Financial Services, INC that I didn’t want to pay the fee if it’s not guaranteed that I’ll get the loan to which he assured me that I will definitely be approved for the loan & there will be a contract letter stating I’m going to get the loan funds. If something happens my money will be refunded back to me.

What are your thoughts? Is this a scam? The lender’s name is Gerald Kelly. Thanks in advance!

[Jon Holdman]

Originally posted by @Ayodeji Kuponiyi:

@Account Closed This is the terms & conditions:

TERMS AND CONDITIONS

1. The Loan attracts an interest rate of (4%) per Annum, and the loan repayment starts 2 months after loan has been transferred to Borrower.

7. Applicant is to pay a onetime fee which will cover the processing of all documents and transfer of funds to his/her account and this usually depends on the amount of you are looking for.

8. No loan can be approved for a borrower with credit scores below 400.

There are many red flags in these "terms".  Here are just a few.

"The Loan attracts an interest rate of (4%)".  That would be a great rate.  Red flag #1.  The phrase "attracts an interest rate" is language no legitimate lender would every use.  Red flag #2.  Implying they could fund a loan at a 400 credit score.  Bull... hockey.  That's so far into dead beat territory nobody would fund that loan.  Red flag #3.  Up front fee.  Red flag #4.  Not just a red flag, a big burning bon fire with fireworks coming out in every direction.  This "lender" is a scammer.  Period.  Move on.