Are HML Upfront Commitment Fees Normal? (1stcapitallending)

[Tim Ivory]

I am rehabbing my parents property as my first rehab project. 180K is left on mortgage and 45K in renovation costs with an ARV of 450K. I am applying for a renovation loan only for 60K.

I found a lender (1stcapitallending) who would would give me 7% interest over six months, total cost of loan is 2100 funding 100% of the Loan with no downpayment. This is great, but there is a loan commitment fee of $1200 that I wasn't expecting so I'm doing my due diligence. 

Does anyone have experience with 1stcapitallending? How common are upfront loan commitment fees?

[Issac San Miguel]

Quote from @Tim Ivory:

I am rehabbing my parents property as my first rehab project. 180K is left on mortgage and 45K in renovation costs with an ARV of 450K. I am applying for a renovation loan only for 60K.

I found a lender (1stcapitallending) who would would give me 7% interest over six months, total cost of loan is 2100 funding 100% of the Loan with no downpayment. This is great, but there is a loan commitment fee of $1200 that I wasn't expecting so I'm doing my due diligence. 

Does anyone have experience with 1stcapitallending? How common are upfront loan commitment fees?

Seems a bit like a junk fee. 

7% seems aggressive in todays rising rate environment. I would ask them why they can’t take it out of the loan proceeds.