An Overview of Residential Loan Solutions
Residential Loan Programs
If you’re going to buy an investment property, you want to acquire a long-term landlord loan. These types of loans tend to be based on collateral and will use the property as asset valuation. Some lenders don’t require income documentation for approval. Different portfolio lenders have different pricing and fees. Working with a direct private lender like PACT Capital will give you access to all of the financing options available.
SFR Lines of Credit
The main drawback to many investment property loans is the lack of flexibility. There are strict terms and conditions that must be met to continue to receive funding and grow your portfolio. For those who like to maintain a certain degree of control, rotating lines of credit may be a good option. Rotating lines of credit are easier to acquire if you have an LLC, but they’re doable on an individual basis as well—on a smaller scale.
Portfolio loans are a good option if you’re looking to acquire multiple properties under a cohesive financial lending facility. This helps to increase your efficiency by removing the effort it takes to manage multiple mortgages. In retrospect, the more mortgages you have, the harder it is to oversee finances. Blanket mortgages can simplify the process and give you more time to focus on renovations and operational administration.
Within each of these loan types, there are different types of lenders. Finding the right lender can take a lot of work. Conventional lenders require strict guidelines and take more time to close, but they’re cheaper with low interest rates. Online portfolio lenders close quickly and don’t require a lot of documentation, but they’re more expensive and require a high degree of scrutiny to ensure they’re trustworthy. Hard money lenders offer fast, flexible lending options, but can be expensive.
As Bridge-to-Perm lenders, PACT Capital has the market experience and direct lending capacity to help with every investment residential loan need. To get the most out of your residential investment property or portfolio, call PACT Capital today.
Fix and Flip Loans
Another opportunity for investment properties is flipping housing or going through the process of buying, renovating, renting, refinancing, and repeating—also known as the BRRRR method. In both of these circumstances, you’ll want to inquire about a short-term loan that allows you to quickly boost your capital so you can accomplish your goals. One option for short-term loans, aside from a bridge loan, is a purchase-rehab loan. This is a loan type that’s specific to those who are looking to flip houses, similar to short-term renovation loans. These short-term loans are beneficial because they allow for expedited action that usually settles within a few weeks. A portion of the money is escrowed and is released based on terms set by your lender, often pending the progress of the renovation work.
|Minimum Loan Amount||$50,000|
|Term||1, 3, 5, 7, 10, or 30 Years|
|Borrower Type||Entity (Single Purpose Entity) or Individual|
|Amortization||20, 25, and 30 years|
|LTV||up to 80% - LTC: up to 90%|
|Recourse||Non-recourse and Full Recourse Available|
|Property Types||Single Family Residences (SFR); 2-4 unit properties; Condos; Townhomes|