Acquisition loans are for investors to acquire new properties based on the value of the property. Unlike other financing options, these are strictly funds for the purchase of the property and do not include funding for any renovations or repairs, which may be required.
Bridge Loans are typically used for an investment property while waiting for long-term financing to close. It gets its name because it “bridges the gap” between the time a project is found to securing a bank loan so you don’t lose the investment property.
Cash-Out Refinancing Loans
Investors and developers use this type of loan to pull equity out of existing properties and reinvest that money into new opportunities. The key difference between this and a standard refinancing loan is that it allows you to pull out equity to use as cash versus simply seeking better rates to finance a property.
Condo Coversion Loans
Condominium conversion is the process of converting multi-unit homes and rental apartments, which are leased by occupants into condominium units, which are owned by the occupants. Loans are available for developers who are converting properties into condominium structures.
Fix & Flip Loans
Fix & flip loans are short-term, and are typically used to fund the purchase and repairs of an investment property. It gets its name because investors, house flippers, and developers purchase investment properties with the intention to fix it up and sell it for a profit, also known as “flipping” it.
New Construction Loans
New construction loans allow investors to build a new structure on either shovel-ready land or a tear-down property. The difference from a fix & flip loan is that it is for borrowers to build from the ground up instead on renovating an already existing structure.
For traditional, owner-occupied mortgages, it is a way to get lower interest rates for a homeowner who has not yet paid off their mortgage. For investors, it is a way to secure more time or capital needed to complete your property rehab, or to acquire a lower interest rate.
Rental Property Loans
Rental property loans are typically used to fund the purchase of an investment property that will be rented to a tenant. Investors can secure these loans at a fixed interest rate for up to 30-years. These loans typically do not cover repair costs.
Transactional Funding Loans
Transactional funding loans finances a back-to-back (simultaneous) closing. A wholesaler can purchase a property from a seller and assign the contract to an end buyer; typically within 1-5 business days, making the process fast and easy.