What Kind of Real Estate Loan is Right for You?

When it comes to financing real estate, there are many different types of loans – and lenders. In particular, private lending has grown rapidly over the last few decades in response to changes in the banking and regulatory landscape.

Today, many commercial banks are unwilling to finance anything but fully stabilized assets, creating space for private lenders and non-retail mortgage banks, which now hold more than two-thirds of all U.S. real estate debt.

As a Licensed Mortgage Loan Originator (NMLS ID 409994), I procure customer loans from two sources: Fairbridge Lending (commercial) and Meadowbrook Financial

Mortgage Bankers Corp (residential). In this article, we’re going to explore a few types of financing options available from these lenders.

Fairbridge Lending provides commercial real estate investors and developers with both short- and long-term financing that can close in as little as 10 days. These include:

• Commercial Bridge Loans: Designed to help borrowers quickly purchase or refinance a property in order to take advantage of a short-term opportunity or time-sensitive deal, or to bridge the gap until more traditional commercial financing is available.

• Investment Property Term Loans: These are long-term permanent financing options designed for experienced residential property developers and typically issued for one- to eight-unit investment properties, with a 30-year term.

• Fix & Flip Loans: Designed for borrowers with experience redeveloping and repositioning properties. Qualified borrowers can finance up to 80-85% of the purchase price and up to 100% of their renovation costs.

For qualified residential homebuyers, Meadowbrook (NMLS 34973) offers many different loan options designed to suit your unique borrowing needs. These include:

• Home Purchase Loans: Available for both primary and secondary residences for as little as 3% down, with first-time homebuyer options. They include both fixed interest and adjustable rate options, depending on your needs and qualifications.

• Condo & Co-op Loans: Buying into a condominium or cooperative housing comes with additional steps and requirements. These loans, and the service they come with, are tailored to meet the needs of the borrower, board and/or HOA.

• Refinancing: As interest rates change, or as a borrower’s financial situation evolves, refinancing can be a good option. This is a whole new loan with new terms that replaces your old mortgage.

• Home Renovation Financing: Acquire a fixer-upper with purchase and renovation financing rolled into one loan, or tap into your home equity to make updates.

• Jumbo Loans: As of Jan. 1, 2023, the Federal Housing Finance Agency (FHFA) defines “jumbo” loans as loan amounts greater than $726,200 on single-family homes. Jumbo loans come with additional requirements and are not guaranteed by government agencies.

• Reverse Mortgages: For qualified homeowners with significant equity in their property, a reverse mortgage allows you to steadily convert that equity into usable cash without having to make monthly mortgage payments.

• Second Home & Investment Loans: Properties beyond your primary residence, be it a vacation home or investment property, typically attract different interest rates and loan terms. These loans cater specifically to such properties.

• USDA Loans: Available not just for eligible rural homebuyers, but for homebuyers in suburban areas of large cities and residents of towns with fewer than 25,000 people. Loans are guaranteed by the U.S. Department of Agriculture (USDA).

• VA Loans: Many military veterans qualify for home financing with no down payment or private mortgage insurance that can be used for purchasing, renovating or refinancing; lowering your rate; or a cash-out refinance.

This is just an overview of the many different types of real estate loans available to qualified borrowers from the lenders I represent. Even more options are possible depending on your unique situation.

Whether you’re a commercial real estate developer or a first-time home buyer, Fairbridge and Meadowbrook may have solutions to meet your needs. Contact me today to learn more.

About Biagio P. Maffettone

Biagio P. Maffettone is Vice President of Sales for Meadowbrook Financial Mortgage Bankers Corp and a Licensed Mortgage Loan Originator (NMLS ID 409994). Over more than two decades, he’s built an award-winning practice as a licensed mortgage loan

originator, sales manager, and real estate financier with New York’s leading mortgage banks. He is an expert in home financing solutions, including jumbo financing, condo/co-op, new construction, first-time homebuyer, renovation, foreign national, commercial, bridge financing/private money, fix-and-flip, cross collateralization, and FHA/VA loans.

Disclaimer: This article is made available for educational purposes only, as well as to give you general information and a general understanding of home mortgages – not to provide specific advice. By using the above information, you understand that there is no

relationship between you and the content publisher. The information in this article is intended to be general and may not apply to each individual’s unique situation