Funds for Construction
Hard money loans, cash out refinance,
HELOC!
Residential
- Primary Residence
- Vacation/Secondary Home
- Rental Property (1-4 units)
Commercial
- Owner Occupied
- Multifamily (5+ units)
- Investment
- Other
Industrial & Land
- Property/Warehouse
- Undeveloped/No Structures
A Plus Homes can connect you with a team of experienced professionals inside the lending industry.
They do it all, from refinancing to SBA Real Estate!
Small Business Administration (SBA) Loans
Introduction to Commercial Real Estate Loans for Real Estate Businesses
Are you a real estate business looking to expand your portfolio with commercial properties? Discover how commercial real estate loans can help you achieve your goals. Find flexible financing options, competitive rates, and expert guidance tailored to meet the needs of your real estate ventures. Whether you’re purchasing, refinancing, or renovating commercial properties, our commercial real estate loans can provide the financial support you need. Explore the possibilities and unlock the potential of your real estate business.
Real Estate Loan
- MAX FUNDING AMOUNT $50K - $10M
- FACTOR RATES Starts at 8% APR
- Speed of Funds 1-3 months
What is Real Estate Loan?
Real estate loans, also known as property loans or mortgage loans, are financial products specifically designed to help individuals and businesses acquire or invest in real estate properties. These loans provide the necessary funds to purchase, refinance, or develop residential, commercial, or industrial properties.
Real estate loans come in various forms, such as traditional mortgages, construction loans, bridge loans, and commercial property loans. The terms and conditions of these loans can vary based on factors such as the type of property, loan amount, interest rates, repayment terms, and borrower’s financial qualifications.
Lenders typically assess the value and potential of the property being financed, as well as the borrower’s creditworthiness, income, and financial stability when considering real estate loan applications. These loans play a vital role in facilitating property transactions and investments, enabling individuals and businesses to fulfill their real estate goals.
How Do Real Estate Loans Work?
Real estate loans work by providing borrowers with the necessary funds to purchase or invest in real estate properties. Here’s an overview of how real estate loans typically work:
The borrower applies for a real estate loan with a lender, providing their personal and financial information, as well as details about the property they intend to purchase or refinance.
The lender evaluates the borrower’s creditworthiness, income, and financial stability to determine their eligibility for the loan. Prequalification helps borrowers understand their borrowing capacity and sets the stage for further loan processing.
The lender assesses the value of the property being financed through an appraisal process. This evaluation ensures that the property’s value aligns with the loan amount requested and serves as collateral for the loan.
If the borrower meets the lender’s criteria, the loan application is approved. The lender establishes the loan terms, including the loan amount, interest rate, repayment period, and any applicable fees.
The borrower and lender finalize the loan agreement by signing the necessary documents. This step involves completing legal and financial paperwork, including the mortgage or deed of trust that secures the loan against the property.
Once the loan is closed, the lender disburses the funds to the borrower. The borrower can then use the funds to complete the real estate transaction, such as purchasing a property or refinancing an existing mortgage.
The borrower begins making regular payments, usually monthly, to repay the loan over the agreed-upon term. Payments typically include both principal and interest, with a portion going towards reducing the loan balance.
Throughout the loan term, the borrower interacts with a loan servicer who manages the loan on behalf of the lender. The servicer collects payments, handles escrow accounts (if applicable), and provides customer service.
Once the borrower fully repays the loan, including interest and any applicable fees, the loan is considered complete, and the borrower gains full ownership of the property (if a mortgage was involved).
It’s important to note that specific details and processes may vary depending on the lender, loan type, and local regulations. Working with a knowledgeable lender or mortgage professional can help borrowers navigate the real estate loan process smoothly.
Who Qualifies For SBA Real Estate Loan?
Approved businesses generally met the following criteria:
- ANNUAL REVENUE: $360K+
- CREDIT SCORE: 650+
- TIME IN BUSINESS: 2 YEARS +
