Real Estate Investment Loans: A Compare & Contrast
Just as there are many different types of real estate investors, there are also many different types of real estate lenders, and real estate investment loans. For those readers who are relatively new to real estate property investment, we’ve put together a quick overview and comparison to help sort through the different kinds of real estate investment loans available from Noble Mortgage & Investments, LLC.
We offer three distinct types of loans. Conventional loans (mortgages), hard money loans, and investor (combination) loans.
Texas Conventional Loans & Mortgages
Conventional loans are a type of real estate investment loan typically referred to as mortgages. Here the terms of the loan are set forth by either Fannie Mae or Freddie Mac. These loans have to be in the name of an individual and cannot be in the name of a company. They can be used to purchase either a primary residence or an investment property.
Applying for a conventional mortgage requires the applicant to fill out a mortgage application, submit 2 years tax returns, most recent bank statement or related documentation (401Ks), and complete a credit authorization.
Residential conventional loans offer some of the most competitive terms in the marketplace. You can borrow from 10-30 years, on a fixed-rate mortgage, at a low interest rate, with fairly low closing costs.
You can only have 10 properties financed in your name at any one time.
Our residential conventional mortgages are available on all 1-4 unit properties in the Texas market, from $50,000 to $1,000,000. Terms range from 15-30 years.
Our commercial conventional mortgages are available on all 5+ unit apartments, as well as office, retail, warehouse, and single-tenant properties, from $100,000 to $5,000,000. Terms range up to 30 years.
Texas Hard Money Loans
Noble Mortgage is a direct, hard money lender with loan programs in Houston, Dallas, San Antonio, and Austin, Texas.
How to Use Hard Money for Residential and Real Estate Investing
The second type of real estate investment loan, also known as an asset-based loan, is a hard money loan. These short term loans are used by investors to purchase distressed residential real estate. Hard money can be a very valuable tool for investors who understand how it works and when to use it.
This loan type is often used when investors need to close a loan very quickly, they need more leverage on the loan, or they’re buying a property in need of repairs. Hard money lenders can close loans in 7-10 business days.
Hard money loans are based on the ARV (after repair value), which often means 100% financing on the deal. By basing the loan amount on the ARV, investors are able to obtain up to 100% financing on the deal.
Residential Hard Money
Our residential hard money loans are available on all 1-4 unit properties, from $50,000 – $1,500,000. Terms range from 1-5 years.
Commercial Hard Money
Our commercial hard money loans are available on all apartments, offices, retail space, warehouse, or single tenant properties, from $100,000 to $5,000,000. Terms range from 1-5 years.
Texas Investor Loans
The investor loan program is a two-step, combination loan. The original acquisition is a hard money loan, while the actual life of the loan a conventional loan that allows the investor to actually hold onto the property.
Joe the Investor
Our Joe the Investor combination loan program is available for all 1-4 single family properties in Houston, Austin, San Antonio, and Dallas, for $50,000 to $400,000. Terms include a 6 months hard money loan, followed by a 15-30 year conventional mortgage. (Note, applicants must pre-qualify for conventional financing.)
Contact the Real Estate Investment Loan Expert
If you would like to learn more about real estate investments loans in Texas, contact Noble Mortgage and Investments, LLC. Our loan experts can pre-qualify you for a range of conventional mortgage and hard money options. Call (713) 680-8100 today to learn more, or contact us online.
Different Types of Real Estate Investment Loans in Texas | Noble Mortgage & Investments, LLC.