Real estate-secured loan refers to utilizing one’s home or other property as a collateral in order for the borrower to acquire a loan. The borrower offers security in the form of his or her real property to the lender to increase the chances for loan approval. People typically avail this type of loan to purchase or fix a property, pay medical bills, pay for tuition, or starting a business (commercial loans).
First Mortgage Purpose Loan
First mortgages are primarily used for buying a house. The money a bank or a private lender will grant is based on the value of your collateral (the property) and your financial capacity (income level).
Secured loans have lower interest rates than unsecured loans. More importantly, you will have a place of your own, which its value grows over time.
Second Mortgage Purpose Loan
Second mortgages may also be called home equity loans. The amount of loan a borrower can get is primarily based on one’s equity level in the home, the value of the property, the borrower’s credit score, and income level.
Second mortgage loans may be used to refinance renovations, medical bills, college tuition, or putting up a business.
Other Types of Real Estate-Secured Loans
- Home equity conversion mortgage (reverse mortgage)
- Home equity line of credit (HELOC)
We offer several hybrid loan products that allow an existing business owner or one buying an existing business to purchase real estate or refinance real estate for business purposes, as well as business equipment/inventory that can often be used to secure additional financing over and above the maximum loan amounts based on the real estate only. Under some circumstances, no cash from borrower up to and over 100% of real estate value can be borrowed. Contact us about these unique products now!Apply Now