Financing

Obtaining Financing

There are a number of financing options for real property, including cash, conventional mortgage, hard money loans, hybrid loans, asset-based mortgages, and an FHA loan.

Financing Options

Great for investors who have access to a significant amount of capital, either personally or through their network, and wish to purchase properties free and clear. Cash is king in real estate, and can help to close a transaction quickly and successfully. 

Accessible to investors who have less-than-perfect credit or financial history, and are in need of a short-term loan. These interest rates are typically higher than you would find elsewhere.

Investors who are well-connected can often tap into capital from personal connections, borrowing money at a specified interest rate and payback period.

Individuals who have elected to create savings through a self-directed IRA may make the decision to tap into their account as a way to access capital.

Buyers and sellers can sometimes strike up a mutually beneficial agreement, allowing the purchaser and seller to avoid having to go through a private lender altogether.

This is a great option for investors trying to raise the last portion of funding for a project. Peer-to-peer lending can offer high flexibility and low interest rates

Loan Options

When examining the large umbrella of different real estate financing options, one should also consider loans offered by the government, traditional lenders, and methods of leveraging personal equity. Some of the most popular loan options include:

Conventional home loans financed by banks still remain one of the most popular methods of financing real estate transactions.

Consumers with less-than-perfect credit or those who do not have access to capital to satisfy a large down payment can achieve homeownership by taking out a mortgage backed by the Federal Housing Administration.

Homeowners who have built up equity in their property can take out a loan in the form of a line of credit, allowing them the flexibility to expand their portfolios by using their equity as collateral.

A special type of loan backed by the Federal Housing Administration, 203K loans support the purchase of older or damaged properties in need of rehabilitation.

As its name suggests, a conforming loan is a mortgage that is equal to or less than the amount established by the conforming loan limit set by the FHFA. Perhaps even more importantly, conforming loans comply with Freddie Mac and Fannie Mae.

Portfolio loans are serviced by the initial lenders that first issued the funds. Instead of selling the loan to the secondary market, the servicer will keep the loan in its own portfolio.

A VA loan is a mortgage that is guaranteed by the United States Department of Veterans Affairs.

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We are Here to Help

For many borrowers, the home loan process can feel overwhelming to say the least. Our experienced LRI agents will provide dedicated assistance through the entire process, from pre-approval to closing. And if you have no lending specialist in mind, we are happy to provide recommendations. 

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Application and Processing

When you find the property you’re ready to purchase, your lender will help you complete a full mortgage loan application, and talk you through the various fees and down payment options. During this process, we'll be beside you every step of the way to answer questions or concerns. Once the application is submitted to processing, the documents are reviewed and appraisals and title examination are ordered. The loan is then sent to an underwriter, who reviews and approves, or sends back for additional clarification or information.  

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Finalize the Deal

Most loan approval processes include requests for additional documentation or clarification, so don't be alarmed. Once your loan is approved, your documents will be sent to the title company, and you're set to close! 

Unlock The Luxury Experience

By combining the personalized bespoke services of a boutique agency, with the robust technology and network reach of a global conglomerate, LRI continues to redefine the ideal in the luxury real estate services market. Whether it be via zealous representation, expert negotiation, dynamic marketing, or consulting expertise, LRI’s dedication to excellence remains unmatched. Contact us today to unlock the luxury experience for yourself.