Real estate finance generally involves how an investor chooses to secure funds for an impending investment. The investment may vary from purchasing a home, a piece of land, or renovations.

Unlike other financings, real estate comes with underwriting and may sometimes be overwhelming for new investors. However, one should know a few things before making a significant decision on investing that can be of great help.


How to get Real Estate Financing

For investors, the first and foremost step is identifying the property, negotiating the prices, and any other requirement one may have. This step will help in determining which option in real estate financing will complement one’s strategy. The methods of financing real estate investment are often many, but knowing which one suits your investment best is the trick.

With a little bit of due diligence on the part of the investor, there should be no fear or anxiety about finding financing. Some of these financing methods are:

  • Hard Money Lenders
  • Private Money Lending Institution
  • Self Directed IRA Accounts
  • Seller Financing
  • Peer-To-Peer Lending
  • Cash Financing

Alternatively, when deciding the best form to finance a real estate project, one should also consider available mortgage loans provided by the government, traditional private lending institutions, or leveraging personal equity.


Loan Finance for Real Estate Investing

  • 203K Loan: Loans supported by the Federal Housing Administration and supports the purchase of older properties for rehabilitation purposes.
  • Home Equity Loan: investors who have built equity for their property can access loans, allowing them to use this equity as collateral for the loan.
  • FHA Loan: for investors without a perfect credit score or have no access to large capital to satisfy down payments can opt for a mortgage- supported by the Federal Housing Administration.
  • Traditional Mortgage Loan: this is a conventional home loan financed by banks.
  • Conforming Loan: This is a mortgage loan that complies with the Federal Housing Finance Agency’s rules and limits.
  • Portfolio Loan: these are loans serviced by the first lenders that first issue the funds as an alternative to selling the loan to the secondary loan market.
  • VA Loan: these are mortgage loans meant for veterans through a program by the United States Department of Veterans Affairs.

For more information about Real estate financing and the above loan financing options, visit