Lending Programs
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Lending Programs Examples
Several Types of Lending Programs We Offer
Construction Financing
Loan Amounts: $5 million – $100 million
Loan Term: Up to 36 months
Geography: Worldwide
Interest Rate: Typically ranges from 6% to 10%, with a fee of 1 point, depending on various factors such as creditworthiness, project size, and market conditions.
Asset Types: Multi-family, retail, office, mixed-use, industrial
Construction Financing is a short-term loan used to fund the building or renovation of structures. Key features include:
Short-Term: Typically lasts from several months to a few years.
Draw Schedule: Funds are disbursed in stages as the project progresses.
Interest Rates: Generally higher than traditional mortgages, ranging from 6% to 10%, based on factors like creditworthiness.
Repayment: Often converts to a permanent mortgage upon project completion.
Collateral: The property being constructed serves as collateral for the loan.
This financing is commonly used for residential, commercial, and industrial projects.
Flip financing, often referred to as "fix and flip" financing, is a type of short-term loan designed specifically for real estate investors who purchase properties to renovate and resell quickly for a profit. Here’s a brief overview:
Key Features of Flip Financing:
Short-Term Loan: Typically structured as a short-term loan lasting from 6 months to 2 years, enabling investors to quickly finance renovations and resale.
Quick Approval Process: Many lenders offer expedited approvals, allowing investors to seize opportunities in competitive markets.
Higher Interest Rates: Rates often range from 6% to 12%, reflecting the higher risk associated with these loans when compared to traditional financing.
Loan-to-Value Ratio: Lenders typically finance a percentage of the property's purchase price (often 70-85%) plus the estimated cost of renovations.
Points: Borrowers may pay points (typically 1 to 3) in addition to interest, which are fees based on the total loan amount.
Focus on Property Condition: The condition of the property and its renovation potential are crucial factors in the approval process.
Applications:
Flip financing is commonly used by real estate investors looking to purchase distressed properties, renovate them, and resell them at a higher market value.
Fix & Flip Financing
Drawn Balance Option: Available for flexible financing
Interest-Only Loans: Fixed interest rates as low as 6.75%
Loan Terms: Options available for 12 to 18 months
Exposure Limits: Line of credit (LOC) to renovate or build multiple properties
Higher Interest Rates: Typically range from 6% to 12%, reflecting the risk associated with these loans.
Points: Borrowers may incur 1 to 3 points based on the total loan amount, along with interest payments.
Target Properties: Ideal for purchasing, renovating, and quickly reselling distressed properties.
Single Rental Loans
Rate reduction up to 100 basis points
Up to 95% PDTI, 75% cash-out
Vacation rental options available
Vacant properties eligible for up to 100% market rent
Loan amounts up to 1.5 million
Purchase or cash-out refi of a single rental property
Single rental loans refer to a type of financing specifically designed for individuals or investors who are purchasing or refinancing a single rental property. These loans provide the necessary capital for acquiring a property that will be rented out to tenants. Here are some key aspects of single rental loans:
Key Features:
Targeted Financing: Designed for single-family homes, condos, or townhouses intended for rental purposes.
Loan Amounts: Typically, available for varying amounts, allowing borrowers to fund the purchase or refinance based on the value of the property.
Flexible Terms: Loans can come with various terms, including options for cash-out refinances, enabling property owners to withdraw equity for other investments or improvements.
Interest Rates: Rates may vary based on the borrower’s creditworthiness and the property’s location and condition.
Eligibility Criteria: Borrowers often need to meet specific credit and income criteria, and the property must be assessed for rental potential.
Debt-to-Income Ratios: Lenders may consider debt-to-income (DTI) ratios to evaluate the borrower’s ability to manage mortgage payments along with any other existing debts.
Applications:
Single rental loans are commonly used by real estate investors, landlords, and individuals looking to invest in rental properties. They provide the funding necessary to acquire or refinance properties intended for income generation through rental agreements.
Portfolio Rental Loans
Interest Rates: Typically range from approximately 3.5% to 8%, depending on loan terms and borrower creditworthiness.
Loan Amounts: Accommodate larger amounts, often from $100,000 to several million dollars, based on property value and income potential.
Points: Lenders may charge 1 to 3 points, calculated as a percentage of the total loan amount.
Loan Terms: Flexible options ranging from 5 to 30 years, with choices for fixed or adjustable-rate structures.
Vacation Rental Options: Available for financing vacation rental properties.
Declining Points Prepayment Option: Offers flexibility for early repayment with reduced penalty points.
Portfolio rental loans refer to a type of financing that is used to acquire or refinance multiple rental properties—often held together as a portfolio by a single investor or lending entity. These loans are specifically designed for investors who own several rental units or properties and want to manage their financing under a single loan arrangement. Here are some key aspects of portfolio rental loans:
Key Features:
Multiple Properties: Portfolio rental loans allow investors to finance multiple properties as a single loan rather than obtaining separate loans for each property.
Simplified Management: By consolidating loans, investors can simplify their financial management, reducing the number of monthly payments and administrative tasks.
Flexible Terms: Lenders may offer flexible loan terms and repayment options that cater to the needs of real estate investors, including adjustable or fixed-rate options.
Loan Amounts: These loans typically cater to larger financing needs, allowing for higher loan amounts compared to traditional single-property loans.
Interest Rates: Rates may vary based on the overall risk profile of the portfolio, property types, and market conditions; they can be competitive compared to single-property financing.
Underwriting Criteria: Lenders assess the overall performance and risk of the entire portfolio rather than focusing solely on individual properties, which can sometimes result in favorable lending terms.
Applications:
Portfolio rental loans are commonly used by real estate investors and landlords looking to finance multiple rental properties, such as single-family homes, multi-family units, or commercial rentals. This type of financing is ideal for investors looking to streamline their real estate investments while optimizing their financing strategy.
Commercial Financing
Loan Amounts: $100,000 – $900 million
Geography: Worldwide
Interest Rates: Starting at 6.99%, with rates varying based on creditworthiness, property type, and market conditions; generally range from 6% to 10%.
Loan Terms: Typically between 5 to 30 years, with options for fixed or adjustable rates.
Points and Fees: Lenders may charge points (1 to 3) and other associated fees, impacting the overall borrowing cost.
Commercial financing refers to the process of obtaining funds for business-related purposes, specifically to purchase, refinance, or capitalize on income-generating properties and assets. This type of financing is primarily used by businesses, real estate investors, and commercial real estate developers. Here are the key aspects of commercial financing:
Key Features:
Purpose: Commercial financing is typically used for acquiring or improving business properties, such as office buildings, retail centers, industrial properties, and multi-family housing.
Loan Types: This can include a variety of loan types, such as commercial mortgages, lines of credit, bridge loans, and construction loans, each serving different financing needs.
Loan Amounts: Commercial loans often involve substantial amounts, ranging from tens of thousands to millions of dollars, depending on the property's value and the borrower's financial profile.
Interest Rates: Rates can vary significantly, often starting around 6% and going upwards, influenced by factors such as the borrower's creditworthiness, the type of property, and current market conditions.
Repayment Terms: Repayment terms can range from a few years to several decades, with options for fixed or variable interest rates.
Underwriting Process: The underwriting process for commercial loans is more complex compared to residential loans, often involving detailed evaluations of the business's financial health, property income potential, and market analysis.
Applications:
Commercial financing is vital for businesses and investors looking to expand operations, acquire commercial properties, or refinance existing debt. It plays a pivotal role in the growth and sustainability of businesses by providing the necessary capital to invest in real estate and other commercial ventures.
Multifamily Financing
Loan amounts: 2 million – 50 million
Purchase or refinance
Multifamily, industrial, office, retail, or SFR
Loan term: up to 24 months
Lien position: 1st
Geography: nationwide
Interest rate: starting at 7.99%, interest only fixed & 1+ point
Closing: 5-10 days
Multifamily financing refers to the process of obtaining funds specifically for the purchase, development, or refinancing of residential properties that contain multiple separate housing units. This includes properties such as apartment complexes, condominiums, and multi-family homes. Here are the key aspects of multifamily financing:
Key Features:
Target Properties: Multifamily financing is aimed at properties designed to accommodate multiple families or tenants, typically providing rental income for investors or property owners.
Loan Types: It can involve various types of loans, such as conventional mortgages, government-backed loans (like FHA and Freddie Mac loans), and commercial loans tailored for multifamily housing.
Loan Amounts: Financing for multifamily properties usually encompasses larger loan amounts, often ranging from a few million dollars to tens of millions, depending on the property's size and income potential.
Interest Rates: Interest rates can vary significantly based on factors such as the borrower's creditworthiness, property location, and market conditions, typically ranging from 3% to 7% or higher.
Repayment Terms: Loan terms can vary widely, generally ranging from 5 to 30 years, with options for fixed or adjustable rates.
Underwriting Process: The underwriting process for multifamily loans can be more complex than single-family loans, often considering the potential rental income, occupancy rates, and the overall financial health of the property.
Applications:
Multifamily financing is crucial for real estate investors and developers looking to acquire or refinance properties that generate rental income. It facilitates the growth of rental housing and allows property owners to invest in residential real estate, contributing to both personal wealth and the overall housing market.
Hard Money Lending
Loan Amounts: $200,000 – $100 million
Closing: 1-5 days
Geography: Nationwide
Loan Types:
No seasoning refinance
Nonrecourse loans
Loan Limits: As low as 60% Loan-to-Value (LTV)
Loan Terms: 24 to 60 months
Interest Rates: Typically range from 8% to 15% or more, depending on the borrower's credit profile, property type, and market conditions. Points may also apply, usually between 3% to 10% of the loan amount.
Hard money loans are a type of short-term financing secured by real estate, typically provided by private lenders or investors rather than traditional financial institutions like banks. These loans are often used for real estate transactions and are commonly favored by real estate investors, property flippers, and developers. Here are the key aspects of hard money loans:
Key Features:
Secured by Real Estate: Hard money loans are primarily secured by the value of the property being financed, rather than the borrower's creditworthiness or income level.
Short-Term Financing: These loans are usually designed for short-term use, often ranging from a few months to a few years, making them suitable for quick funding needs.
Higher Interest Rates: Hard money loans typically come with higher interest rates compared to traditional financing options, often ranging from 8% to 15% or higher, due to the increased risk associated with these loans.
Quick Funding: One of the main advantages of hard money loans is the speed of funding, with cash being available in as little as 1 to 5 days.
Less Documentation: The approval process is generally less stringent compared to conventional loans, requiring minimal documentation and focusing more on the property's value than the borrower’s credit.
Loan-to-Value (LTV) Ratios: Hard money lenders usually offer loans based on a percentage of the property’s value, typically ranging from 60% to 80% LTV.
Applications:
Hard money loans are commonly used for:
Purchasing properties in distress or needing renovation
Financing investment properties, especially for flipping
Bridging funding gaps during real estate transactions
Providing quick access to cash for time-sensitive deals
These loans are particularly useful for real estate investors who need fast access to funding or who may not qualify for traditional financing due to financial circumstances.
Rates and terms are subject to change.
