Radiant New Horizon Homes.com

house INVESTORS - FINANCING

The types of financing on these pages differ from the ones shown on Buyers - Financing as they are concerning investment purchases as opposed to personal residence transactions (although some of these could also involve investment transactions). An investment transaction is defined here as one that involves some sort of investment, for example, rehab, commercial and rental properties (to rent out to tenants, single or multi-families).

The types of lenders on these pages can be broken down into 2 categories: Conventional and Non-Conventional. Conventional lending is defined here as lending with a traditional bank and Non-Conventional lending as any lending outside a traditional bank. Non-Conventional lenders are commonly referred to as hard money or private money lenders and these terms are often used interchangeably. However, for purposes of these pages, hard money is defined as a typically high interest (10-18 %) short term (24 months or less) for non-owner occupied purchase-and-rehab or commercial transactions. Property is then sold and loan paid off or refinanced and held as a rental investment property. On the other hand, private money is a lender that offers lower interest rates (usually 4-10 %) and longer term loans (up to 15-30 years), some with balloon dates after generally 2-10 years. Owner financing is an example of a private loan.

Because of the lower rates and better terms found with private money lenders and non-standardized qualification terms (as opposed to the standardized qualification terms of a conventional lender), private money lenders are oftern considered a 'Holy Grail', a "platinum needle in a haystack", so to speak. In addition, while many hard money lenders may require title seasoning, often private money lenders do not, making them ideal for financing when purchasing from a "wholesaler" doing a double closing.

To get information on our recommended lenders for investors, click on any of the links below:

CONVENTIONAL

HARD MONEY

PRIVATE MONEY

If you have further questions or to contact any of our recommended lenders,

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